Final Tax Return - "Estate of" on W-2

It depends. All income received by your father while he was still alive goes on his final tax return.  All income received after his death would go on the return of the estate or the beneficiary depending on whether an estate return is filed. If the wages on the W-2 in the name of the 'Estate' were paid after death, they do not go on the final return of the decedent. If they are wages for the entire year, then you may need to prorate then. Since your father died in December, it may be that all of the wages would go on his tax return. If that is the case you can enter the full W-2 on his tax return even though it shows 'Estate of ...'.

If money has not yet been distributed, then the estate return would be filed (Form 1041) first and possibly final, where any income after death is then distributed to the beneficiary or beneficiaries on Form 1041-K1. This filing requirement for Form 1041 taxable income in 2024 of $600 or more. Again, money received after death and before December 31st would go on the estate return if it is required to be filed.

We are sorry for your loss.