Updated October 18, 2026. Quick answer: Schedule C is for a donor who is a surviving spouse with DSUE from a predeceased spouse, or who has a restored exclusion amount. It lists each deceased spouse, the DSUE received and how much has been applied to gifts, then builds the applicable credit that carries to page 1. You are sent here by line 20 of Part I. The DSUE figure comes from the deceased spouse’s estate return.
When Schedule C is used
Line 20 of Part I asks “Have you applied a deceased spousal unused exclusion (DSUE) amount received from a predeceased spouse” and sends a Yes answer to this schedule. The instructions for that line cover the proof: “The executor of the spouse’s estate must have elected on Form 706 to allow use of the unused exclusion amount.” “If the executor of the estate made this election, attach the first four pages of Form 706 filed by the estate.” That line is part of Part I lines 1 to 21. The whole return is explained on the Form 709 page.
“Complete Schedule C if the donor is a surviving spouse who received a DSUE amount from one or more predeceased spouses”, or for a restored exclusion amount, described below. The caution is “Complete Schedule A before beginning Schedule C.”
What DSUE is
“The amount received by the surviving spouse is called the deceased spousal unused exclusion, or DSUE, amount.” “If the executor of the decedent’s estate elects transfer, or portability, of the DSUE amount, the surviving spouse can apply the DSUE amount received from the estate of the last deceased spouse (defined later) against any tax liability arising from subsequent lifetime gifts and transfers at death.” The estate side of that election is on the Form 706 guide.
“The last deceased spouse is the most recently deceased person who was married to the surviving spouse at the time of that person’s death.” “When a taxable gift is made, the DSUE amount received from the last deceased spouse is applied before the surviving spouse’s basic exclusion amount.”
Part 1 and Part 2: columns (a) to (f)
The columns ask for the name and date of death of each deceased spouse, whether a portability election was made, the DSUE amount received, the DSUE applied by the donor to lifetime gifts, and the dates of the gifts. “Each line in the chart should reflect a different predeceased spouse.” “Attach proof of each portability election reported on Schedule C.”
Part 1: “In column (e), enter the total of the amount in column (d) that the donor has applied to gifts in previous years and is applying to gifts reported on this return.” “A donor may apply DSUE only to gifts made after the DSUE arose.”
Part 2: “In column (d), indicate the amount of DSUE received from the estate of each predeceased spouse.” “In column (e), enter the portion of the amount of DSUE shown in column (d) that was applied to prior lifetime gifts or transfers.” The limit is “Any remaining DSUE from a predeceased spouse cannot be applied against tax arising from lifetime gifts if that spouse is not the most recently deceased spouse on the date of the gift.”
A nonresident donor has a separate rule: “A nonresident surviving spouse who is not a citizen of the United States may not take into account the DSUE amount of a deceased spouse, except to the extent allowed by treaty”.
The restored exclusion amount
“a donor who made a transfer to the donor’s samesex spouse, which resulted in a reduction of the donor’s applicable exclusion amount, can now recalculate the remaining applicable exclusion.” “The third step of the procedure is to add up the result for all the years.” “This amount of applicable exclusion will be restored to the donor for use on future gifts and bequests and is known as the Restored Exclusion Amount.” “Enter this amount on line 3 of Schedule C.”
“Attach a statement to Form 709 detailing the calculation of the above procedure on the first Form 709 on which you claim a Restored Exclusion Amount.” “the Restored Exclusion Amount will need to be entered on Schedule C.”
Lines 1 to 5: the credit
“On line 1, enter the donor’s basic exclusion amount; for 2025, this amount is $13,990,000.” “Add the amounts listed in column (e) from Parts 1 and 2 and enter the total on line 2.” “On line 3, enter the Restored Exclusion Amount.” “On line 4, enter the total of lines 1, 2, and 3.” The credit step is “Using the Table for Computing Gift Tax, determine the donor’s applicable credit by applying the appropriate tax rate to the amount on line 4.” The table itself is in the instructions and is not reproduced here.
Where the number comes from
The DSUE amount received comes from the deceased spouse’s estate return, and the prior and current gifts come from the donor’s own Forms 709 and Schedule A Part 2 and Schedule A Part 3. The form itself describes the purpose as “Provide the following information to determine the DSUE amount and applicable credit received from prior spouses.” Planning background is on the estate tax exemption page.
Where it goes next
Line 5 is captioned “Applicable credit on amount on line 4” and ends “Enter here and on line 7, Part II”. The instructions repeat it: “Enter this amount on line 5 and on line 7 of Part II”. Line 7 is covered on the Part II lines 1 to 12 page. The total of column (e) goes to line 2 of this schedule, as the form states: “Enter here and on line 2 below”.
Edition and line numbers
This page reads Form 709 (2025) and the 2025 Instructions for Form 709. Those are the current files irs.gov served on 2026-10-18, byte-identical to the archived copies. The instructions state “For gifts made during calendar year 2025”. Check the year printed on your own Form 709 and use the line numbers on that year’s form, because the form you file is the one that governs your line numbering.
Common mistakes
- Using an older spouse’s DSUE on a new gift. The instructions say “Any remaining DSUE from a predeceased spouse cannot be applied against tax arising from lifetime gifts if that spouse is not the most recently deceased spouse on the date of the gift.”
- Applying DSUE to gifts made before it arose. The instructions say “A donor may apply DSUE only to gifts made after the DSUE arose.”
- Claiming DSUE with nothing attached. The instructions say “Attach proof of each portability election reported on Schedule C.”
Related: Form 709, Form 706, estate tax exemption, and estate planning glossary.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
advisor help with estate and gift tax planning
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
surviving spouse estate planning options
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Instructions for Form 709 (2025), United States Gift (and Generation-Skipping Transfer) Tax Return, for gifts made during calendar year 2025: https://www.irs.gov/pub/irs-pdf/i709.pdf
- Form 709 (2025), United States Gift (and Generation-Skipping Transfer) Tax Return: https://www.irs.gov/pub/irs-pdf/f709.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.