Widowing - Help for Your First Tax Season Without Your Spouse

Losing a spouse can be a challenge for anyone. And not just for personal reasons. So many loose ends can come along for you, the survivor, to tie up. Mortgages, repairs, and, yes, taxes, to name a few, add a lot of headaches to the heartache you already have to work through.

May I Still File a Joint Return with My Deceased Spouse?
Over the years, you and your spouse may have found it in your best interests to file a joint return. As your spouse's executor, it is your right to extend that option to the year-of-death. Likewise, you may file a joint return if a third person is appointed executor - but only if the executor agrees to it. Without his or her consent, your claim may be disaffirmed. In fact, even if an executor has not been appointed at the time of filing, he or she has one year after the return is due to disaffirm your claim and file a separate return for the decedent.

In any case, it is the executor's responsibility to file a return for the decedent. If that person is you, make sure to file, if you wish to remain in good graces with the IRS.

What if I Remarry in the Year of My Spouse's Death?
In the case of remarriage, you have a few filing options. Your decision depends on several things, including the incomes of your current and late spouse.

By remarrying, you forego the right to file jointly with your deceased spouse. Someone will then need to file a "married filing separately" return for the decedent.

• If you are a surviving spouse with zero income, either the executor filing your deceased spouse's return or your new spouse may be able to claim you as an exemption.

Do I File Two Returns if My Spouse Dies in the New Year?
If your late spouse earned any income in the new year, then, yes, you must file for both years. Just write "deceased" along with the date of death on both returns. Remember that:

• "Income" means any earnings, including holdover earnings reported on a W-2.

• If holdover earnings are paid to a beneficiary, the payer should report them to the beneficiary on a 1099-MISC and the beneficiary should claim the income as miscellaneous income.

Who May Use the Qualifying Widow(er) Filing Status?
Individuals who meet the requirements below may use this filing status for the two tax years following, but not including, the year of death:

• You were entitled to file a joint return with your spouse for the year in which he or she died (It does not matter whether you actually filed a joint return);

• You did not remarry before the close of the tax year;

• You have a child who qualifies as your dependent; and

• You furnished more than half the cost of maintaining your home, which was the main home of your dependent child for the entire year (except for temporary absences).

If you file as a qualifying widow(er) you can't claim an exemption for your deceased spouse. You can, however, use the married filing jointly tax table or tax rate schedule. The qualifying widow(er) standard deduction is the same as that for a married couple filing jointly.

I Have Always Filed a Joint Return. How Do I File Now?
Unless you qualify to use the qualifying widow(er) status or you get remarried, you will need to file as single. The deductions are lower and the tax rates are different for this status - so be sure to do some planning for the following year so you don't get caught owing a lot of money at tax time. Contact an H&R Block tax professional for personalized tax planning help.