Tax Tips for Surviving Spouses
How to pass on more than $10 million estate-tax-free.


Nothing may be certain but death and taxes, but the tax man is immortal. You’ll need to report your spouse’s income on final federal and state tax returns (they can be joint returns) for the year of death. The estate may have to file returns, too, if it receives much income before it’s settled.
If your spouse passes away, estates with a gross value exceeding the federal estate tax exclusion — $5.45 million in 2016 — must file an estate tax return even if no taxes are owed after deductions. You may want to file a federal return for smaller estates, though. Only by doing so can you add your spouse’s $5.45 million exclusion to your own, allowing you to pass on more than $10 million estate-tax-free. If there’s any chance you might accumulate more than $5.45 million in assets (by winning the lottery, maybe), you’ll want to preserve this option. A few states require state estate tax returns, too.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
July Fed Meeting: Live Updates and Commentary
The July Fed meeting could be a lively economic event, with Wall Street keyed into what Fed Chair Powell has to say about interest rates and President Trump.
-
No Capital Gains Tax on Home Sales? What You Need to Know
Tax Policy Capital gains taxes are back in the spotlight. This time, the chatter on Capitol Hill has to do with rising home prices.
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)
Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund next year, a smaller one, or something in between. Here are five ways the new law could impact your bottom line.
-
New SALT Deduction Could Put Thousands Back in California Homeowners’ Pockets
Tax Breaks The federal state and local sales tax (SALT) deduction cap is higher this year, and could translate into bigger savings for Golden State homeowners.
-
Three Surprising Ways Trump’s New Tax Law Could Change Your Child’s Money Story
Tax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.
-
Why Your Summer Budget Feels Tighter: Tariffs Push Up Inflation
Tariffs Your summer holiday just got more expensive, and tariffs are partially to blame, economists say.
-
Alabama Tax-Free Weekend 2025
Tax Holiday Here’s everything you need to know about the 2025 back-to-school Alabama sales tax holiday.
-
Key 2025 Tax Changes for Parents in Trump's Megabill
Tax Changes Are you a parent? The so-called ‘One Big Beautiful Bill’ (OBBB) impacts several key tax incentives that can affect your family this year and beyond.
-
‘I Play Pickleball in Retirement.’ Is It HSA-Eligible?
Retirement Tax Staying active after you retire may be easier with these HSA expenses. But there’s a big catch.
-
Mississippi Tax-Free Weekend 2025
Tax Holiday Just in time for Prime Day, Mississippi celebrated a tax holiday in July. Find out what back-to-school essentials were included.