Yes, in general, the final individual income tax return of a decedent is prepared and filed in the same manner as when they were alive. All income up to the date of death must be reported and all credits and deductions to which the decedent is entitled may be claimed.
What if the deceased person passed away early in the year? Would the dependent be treated as living with him for the whole year (12months)? The dependent is a college student and the deceased taxpayer was providing for the dependent.
No, the dependent would be considered to have lived with him for only the number of months they actually lived with him. If that was less than half the year, the dependent would be the qualifying dependent of the other parent or whoever supported the dependent, or, whoever (possibly no one) was otherwise eligible to claim them.