are you filing as M (together), or as M filing single? If filing together, sure do the taxes, it's cheaper that way.
if filing seperately, I wouldn't do her taxes, but if you already said you would then follow through on that.
As for the house, why respond? She didn't ask you a question, she paid you a compliment. If it was in person, then sure you could state something like, I am really happy with the way it came out to.. but by email, no need.
M - 9 1/2 years 5/5/16 - Bomb drop - 3 week EA 10/31/16 - We sold house 01/10/18 - D Finalized