Qualifying Widow(er) IRS Status
You probably only think about your tax filing status around tax time. For most of us it's simply checking the Single or Married Filing Jointly box. For those whose spouses died in the past year, taxes could change significantly if you aren't prepared.
The IRS has a filing status called Qualifying Widow(er). I always assumed this was a temporary status for widow(er)s that gave them a couple of years to adjust and plan for different income. I never paid attention to the "qualifying" part of it.
If you do not remarry before the end of the year in which your spouse dies, you can claim Married Filing Jointly status. However, the next year you must file as Single.
This increases the chances you'll have to pay much more in federal tax because the tax brackets are halved.
For example in 2023, Married Filing Jointly pay 10% up to $22,000, but Single filers pay 10% only up to $11,000 before they reach the 12% bracket.
Qualifying Widow(er) status allows you to use the same tax brackets as Married Filing Jointly for up to 2 years following the year of death, but you must qualify.
The IRS lists the exact details to qualify, but essentially you cannot remarry and you have to have a dependent child that lives with you. The eliminates most older people since their kids are grown up and out of the house.
This change in tax status becomes extremely important when planning tax withholding for things like social security or RMD distribution.
Understanding all of your income sources is an important step that can help prepare for changing tax situations. Download your free Estate Map for a guide on how to get started.