Life changes
After Your Spouse Passes Away: Your Tax Return, Step by Step
There is no need to sort this out alone or all at once. The first return after a spouse’s death follows clear rules, and most of the paperwork can be gathered as it arrives.
Reviewed by LaToya Clark-Thompson, FounderLast updated
Your filing status
For the year your spouse died, you can still file a joint return, as long as you did not remarry before the end of that year. The joint return includes your spouse’s income up to the date of death and all of yours for the year. You sign for yourself and write “filing as surviving spouse” where your spouse would sign.
For the two tax years after the year of death, you may file as a qualifying surviving spouse if you have a dependent child living with you, you paid more than half the cost of keeping up the home, and you have not remarried. That status uses the joint return’s standard deduction and brackets. After that, or without a dependent child, you file as single or, if you qualify, head of household.
What changes on your return
- Your spouse’s final W-2 and any final paychecks, which may arrive on a separate W-2 or a Form 1099
- Retirement accounts you inherit: as a spouse you can generally roll them into your own account or treat them as your own, and withdrawals show on Form 1099-R
- Life insurance paid because of the death is generally not taxable income
- Assets that pass to you at death, like a home or brokerage account, usually receive a new cost basis based on value at the date of death, which matters when you later sell
- Survivor benefits from Social Security, reported on your own Form SSA-1099
If your spouse’s assets earn income after death before they reach you, such as interest in an estate account, the estate may need its own return (Form 1041). South Carolina has no estate or inheritance tax, so for most families the income tax returns are the only filings.
What to bring to your appointment
- A copy of the death certificate
- Last year’s joint return
- All W-2s, 1099s, Form 1099-R and SSA-1099 forms for both of you
- Statements for accounts that changed hands, with values near the date of death if you have them
- Letters of administration or testamentary if someone was appointed for the estate
- Any IRS or SCDOR letters that arrive addressed to your spouse
Common mistakes
- Filing as single for the year of death when a joint return is allowed and usually better
- Missing qualifying surviving spouse status in the following years
- Selling inherited stock or a home using the original purchase price as basis instead of the stepped-up value
- Not changing your W-4: withholding set for two incomes may be too low once you file as single
- Ignoring mail to your late spouse; refunds and letters still need a response
If you sell the home within a limited window after your spouse’s death, you may still use the larger married exclusion on the gain. See selling a home.
When it is worth having a preparer
Most people meet these rules once, at a difficult time. We prepare the final joint return, sort out inherited accounts and basis, and tell you what to expect for the next few years. If an estate return or other family members’ returns are involved, we can prepare those alongside. See also receiving an inheritance and our page on estate tax planning in South Carolina. You can meet in the Easley office or work with us virtually, whichever is easier right now. Start with tax preparation.
Frequently asked questions
Can I file a joint return the year my spouse died?
Yes, as long as you did not remarry before the end of that year. The joint return includes your spouse’s income up to the date of death and all of your income for the year. You sign for yourself and note that you are filing as surviving spouse. If a personal representative was appointed for the estate, they also sign for your spouse.
What is qualifying surviving spouse status?
It is a filing status for the two tax years after the year your spouse died. You need a dependent child who lived with you, to have paid more than half the cost of keeping up the home, and to not have remarried. It gives you the same standard deduction and brackets as a joint return, which usually means less tax than filing single.
Do I need Form 1310 to get my late spouse’s refund?
Not if you are the surviving spouse filing a joint return; the refund comes to you. Form 1310 is used when someone other than a surviving spouse, such as an adult child or other heir, is claiming a refund on the deceased person’s return. A court-appointed representative filing with the appointment papers attached usually does not need it either.
Do I pay tax on my husband’s life insurance?
Generally no. Life insurance proceeds paid because of the insured person’s death are not taxable income to the beneficiary. Interest paid on the proceeds, for example if the insurer held the money for a time or paid it in installments, is taxable and will be reported to you. Bring any statement the insurer sends.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related pages
Supporting a parent
When a parent counts as your dependent, head of household, medical bills and care costs.
Learn moreYou sold a home
The main home exclusion, Form 1099-S, basis and improvements, and when a sale is taxed.
Learn moreSingle parent, head of household
The head of household tests, who counts as a qualifying person and the mistakes to avoid.
Learn moreYou received an inheritance
Inherited cash, IRAs, homes and estate K-1s. What is taxable and what is not.
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