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Widow (er) Benefit
posted at June 11, 2012 12:34 AM EDT
Re: Widow (er) Benefit
posted at June 11, 2012 11:07 AM EDT
First: November 27, 2011
Last: March 7, 2014
In Response to Widow (er) Benefit:
I have never seen any articles pertaining to Income Tax for Widows (ers). Since my husband died, my household expenses have remained or increased yet, my income is considerably less than when he was alive. Why do we have to file as "Single" on our Tax Returns resulting in a higher Income tax. This months magazine discussed problems after divorce.....but nothing about losing a spouse to death. I would be interested to see any discussions regarding this issue.
Posted by JoannA80
EDITED TO ADD: I think your question might get more responses IF it was put in a different place on the board - maybe "TAXES" or "TRANSITIONS".
Sorry for your loss, since 2006, I have been a widow - it does require change especially in the financial sense.
If you have small children or other dependents, I believe that "Head of Household" filing is open to you. Otherwise, as a widow/widower, you are technically single. However if (deductible) expenses have remained the same or increased and your income is lower, this will reduce your tax bill.
If you are filing using the standard deduction, it is true that your standard deduction has been cut in half but this is all part of the reality of becoming a widow/widower. This is a big change in your life in a lot of different respect and if ( in advance) financial plans have not been made this could mean that you need to lower some of your expenses.
If the Bush Tax Cuts expire in January 2013 without any modifications, the equilization of the marriage tax penalty may come back into focus and tax-wise you might be a little better off with the single filing but again it seems that your problem may be more on the expenses side of your situation than taxes.
So many things affect our tax liability, you almost have to look at your individual situation.