It’s often said that there are only two absolutely certain things in life: death and taxes.But many folks don’t stop to consider the tax ramifications of the death of a spouse, particularly on a couple who has filed jointly for decades.
For many of the same reasons some folks turn sour on estate planning and never make their wishes known, many couples may avoid the important steps needed to plan for the eventual passing of one spouse because it’s an unpleasant topic.
Yes, in general, widows pay more taxes once their spouse dies. This is due to the standard deduction being cut in half when you file as a single taxpayer, compared to using married filing jointly, because of the compression in tax brackets.
There are several consequences to this quirk in our tax code: – A decrease in Social Security and a possible increase in how much your Social Security benefit is taxed – Decreased standard deduction – An increase in your marginal and effective tax rates
No, widows do not get a tax break. If your spouse died this year, you can still claim as married filing joint. If the widow has dependents, there is a qualifying widow filing. The point of the widow’s tax is that widows get the opposite of a tax break!