The federal qualifying widow or widower tax filing status provides a sense of financial relief for surviving spouses with dependents, available for two years following the spouse’s death. In the year of the spouse’s death, the surviving spouse may file jointly with the deceased spouse and benefit from the standard deduction for a married couple filing jointly. For the next two tax years, this status, if you maintain a household for the couple’s dependent children, can provide continued financial ease.
Key Advantages of Qualifying Widow/Widower Status
- Ideal for surviving spouses with dependents to ease the financial transition after a spouse’s death.
- Allows filing of taxes jointly with the deceased spouse in the year of death, providing access to higher deductions and favorable tax brackets.
- Continued benefits for two tax years following the spouse’s death, with the ease of the same standard deduction as married couples filing jointly.
Steps to Qualify as a Widow/Widower Tax Filer
To utilize this favorable status, the following conditions must be met:
- The status is not available on the year of the spouse’s death. Instead, you must qualify for the married filing jointly status in that year.
- Remain unmarried throughout the qualification period.
- Have a qualifying dependent—usually, your child, step-child, or adopted child, not a foster child—and ensure they live with you for the entire year. Certain temporary absences, like those due to vacation or education, are acceptable if it is reasonable to assume the child will return.
- Pay over half the costs related to keeping up the home, including mortgage or rent, property taxes, utilities, and groceries.
Why Choose the Qualifying Widow/Widower Status
Opting for the qualifying widow/widower tax status may result in reduced federal income taxes. The primary advantage is enjoying the same standard deduction amount and tax brackets as married couples filing jointly, which can significantly ease the financial strain for surviving spouses. Using this example, if the spouse passed away in the year 2019, the surviving spouse could file as a qualifying widow or widower, securing favorable deductions and tax brackets for the tax years 2020 and 2021.
This benefit is crucial as surviving spouses often face numerous financial expenses, including funeral costs, final expenses, and overall household maintenance while caring for children. The reduced tax burden assists in maintaining stability and provides a buffer to transition eventually either into single, unmarried filer or head of household status.
Additionally, even if the qualifying dependent is born or passes away during the year, you may still qualify under this status given that you have covered more than half of the household costs during the period the dependent was alive or before the birth. Ensure the dependent lived with you during the entire period applicable.
By understanding and leveraging the advantages of the qualifying widow or widower tax filing status, you can lessen your tax burden and maintain financial stability for your family during a challenging time.
Related Terms: Married Filing Jointly, Dependent, Standard Deduction, Property Taxes.
References
- Tax Policy Center. “Some Background”.
- Internal Revenue Service. “Publication 501 (2021), Dependents, Standard Deduction, and Filing Information”, Pages 9-11.
- Internal Revenue Service. “Publication 17: Your Federal Income Tax for Individuals”, Pages 25-26.
- Internal Revenue Service. “Publication 4491 VITA/TCE Training Guide 2021 Returns”, Pages 60–63.
