The IRS requires the widow or widower to check the box for Qualifying Widow(er) with Dependent Child on the annual tax return.
When it comes to filing taxes, many people have to grapple with changes in their tax status due to life-altering events. For those who have lost a spouse, understanding the tax implications of their bereavement and altered tax status is especially challenging. Qualified Widow or Widower (QW) is a special tax filing status that can help surviving spouses take advantage of certain tax benefits.
Qualified Widow or Widower status is available to taxpayers whose spouse has died within the last two years. To qualify, the surviving spouse must handle at least half of the household costs and must have at least one dependent child. The qualifying widow(er) status allows them to use the same standard deduction amount and tax bracket ranges as those for married couples filing jointly.
Once a taxpayer has been widowed, they can use the Qualified Widow or Widower status for two years after their surviving spouse’s death. After two years, the surviving spouse will need to switch to the single or head of household filing status. To indicate that you are filing as a Qualifying Widow(er) with Dependent Child, the Internal Revenue Service (IRS) requires checking the box for Qualifying Widow(er) with Dependent Child on their annual tax return.
In addition to using the standard deduction percentage that is offered to married couples filing jointly, QW filers are also able to retain certain tax credits that they had as a married taxpayer. This includes the Earned Income Credit (EIC), Child Tax Credit (CTC), and Additional Child Tax Credit (ACTC). Claiming these credits can help a surviving spouse manage their tax burden in the wake of the loss of their spouse.
Filing taxes as a qualified widow or widower can be a difficult and confusing process, especially in the chaos of life after the death of a spouse. However, taking a few moments to understand the unique tax status and its benefits can help surviving spouses save significantly on their federal income tax in the wake of their bereavement.
When it comes to filing taxes, many people have to grapple with changes in their tax status due to life-altering events. For those who have lost a spouse, understanding the tax implications of their bereavement and altered tax status is especially challenging. Qualified Widow or Widower (QW) is a special tax filing status that can help surviving spouses take advantage of certain tax benefits.
Qualified Widow or Widower status is available to taxpayers whose spouse has died within the last two years. To qualify, the surviving spouse must handle at least half of the household costs and must have at least one dependent child. The qualifying widow(er) status allows them to use the same standard deduction amount and tax bracket ranges as those for married couples filing jointly.
Once a taxpayer has been widowed, they can use the Qualified Widow or Widower status for two years after their surviving spouse’s death. After two years, the surviving spouse will need to switch to the single or head of household filing status. To indicate that you are filing as a Qualifying Widow(er) with Dependent Child, the Internal Revenue Service (IRS) requires checking the box for Qualifying Widow(er) with Dependent Child on their annual tax return.
In addition to using the standard deduction percentage that is offered to married couples filing jointly, QW filers are also able to retain certain tax credits that they had as a married taxpayer. This includes the Earned Income Credit (EIC), Child Tax Credit (CTC), and Additional Child Tax Credit (ACTC). Claiming these credits can help a surviving spouse manage their tax burden in the wake of the loss of their spouse.
Filing taxes as a qualified widow or widower can be a difficult and confusing process, especially in the chaos of life after the death of a spouse. However, taking a few moments to understand the unique tax status and its benefits can help surviving spouses save significantly on their federal income tax in the wake of their bereavement.