Here’s what HIVE AI had to say about “How do I file taxes if my spouse passed away in 2025?”:
Filing Taxes When Your Spouse Passes Away in 2025
When your spouse passes away in 2025, you have specific options for filing your tax return that provide certain benefits during this difficult time. Here’s a comprehensive explanation of how to handle your tax filing:
Your Filing Status Options
If your spouse passes away in 2025, you have two primary filing status options for your 2024 tax return:
If your spouse died in 2025 before filing a 2024 return, you can choose married filing jointly as your filing status on your 2024 return. This is because if your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. IRS – Publication 501: Dependents, Standard Deduction, and Filing Information
If your spouse passed away in 2025 before filing a 2024 return, you can file a joint return. The joint return should show your spouse’s 2024 income before death and your income for the entire 2024 year. You should write “Filing as surviving spouse” in the area where you sign the tax return. IRS – Instruction 1040-SS (sp): Instructions for Form 1040-SS (sp), U.S. Self-Employment Tax Return (Spanish Version)
For Future Tax Years (2025 and Beyond)
For the year of death (2025) and potentially for two years after, you may qualify for a special filing status:
As a surviving spouse (as defined in section 2(a)), you may be eligible for special tax treatment. The tax code imposes specific tax rates on “every surviving spouse” who qualifies under this definition. IRC § 1(a)
If you qualify as a surviving spouse and are entitled to the joint tax rates as a qualifying surviving spouse, you may continue to use these joint rates until the close of the last year for which these joint rates may be used. IRS – Publication 54: Tax Guide for U.S. Citizens and Resident Aliens Abroad
For 2025 tax returns, surviving spouses have the same standard deduction amount as those filing joint returns ($137,000), which is higher than the standard deduction for single filers. Rev. Proc. 2024-40
Requirements for Filing a Joint Return
When filing a joint return after your spouse’s death, there are specific requirements to follow:
If someone else is the representative personal of your spouse’s estate, this person must also sign the tax return. IRS – Instruction 1040-SS (sp): Instructions for Form 1040-SS (sp), U.S. Self-Employment Tax Return (Spanish Version)
As the surviving spouse or representative personal, you should immediately notify all payers of income, including financial institutions, of your spouse’s death. This ensures proper reporting of income. IRS – Instruction 1040-SS (sp): Instructions for Form 1040-SS (sp), U.S. Self-Employment Tax Return (Spanish Version)
Section 6013(a)(2) of the Internal Revenue Code states that “in the case of death of one spouse the joint return may be made by the surviving spouse… if no return for the taxable year has been made by the decedent, no executor or administrator has been appointed, and no executor or administrator is appointed before the last day prescribed by law for filing the return of the surviving spouse.” Therefore, you are not precluded from filing a joint return with respect to yourself and your deceased spouse. IRS Determination-1044011
Handling Estimated Tax Payments
If you and your spouse made joint estimated tax payments, there are specific rules that apply after death:
A joint payment of estimated tax may not be made after the death of either spouse. However, if it’s reasonable for you as a surviving spouse to assume that you will file a joint return for yourself and your deceased spouse, you may estimate the tax on an aggregate basis when making your separate estimated tax payment.
If you and your spouse made joint estimated tax payments before death, no further payments of joint estimated tax are required from your spouse’s estate. As the surviving spouse, you will be liable for the payment of any subsequent installments of the joint estimated tax.
For the purpose of making amended estimated tax payments, or allocating payments made pursuant to a joint payment of estimated tax between you and the legal representative of your spouse (if a joint return is not filed), the payment may be divided in such proportion as you and the legal representative may agree. Tresuary Reg. 1.6654-2
Tax Considerations and Planning
Joint Return Benefits
Filing a joint return for the year before your spouse’s death (2024) typically provides several benefits:
- Lower tax rates: Joint filing status often results in a lower overall tax liability.
- Higher standard deduction: The standard deduction for joint filers is higher than for single filers.
- Eligibility for certain credits: Some tax credits have higher income limits for joint filers.
Estate Tax Considerations
If your spouse had a Qualified Terminable Interest Property (QTIP) trust, this generally allows a transfer of QTIP to qualify for a marital deduction for the first spouse to die and thereby escape inclusion in that spouse’s estate, even though only a life interest passes to the surviving spouse. “At the death of the second spouse, QTIP property is taxed as part of the surviving spouse’s estate.” Under section 2044, the amount included in the gross estate is generally “the value of the entire interest in which the decedent had a qualifying income interest for life, determined as of the date of the decedent’s death.” Dawson U.S. Tax Court Opinions: Estate of Pearl B. Kalikow, Deceased, Eugene Shalik, Executor & Edward M. Kalikow & Laurie K. Platt, Limited Administrators
Unused Deductions
By definition, a taxpayer cannot file a joint return with a deceased spouse except for the year of death. A deceased taxpayer’s unused deductions—capital or net operating loss deductions or deductions for charitable contributions—must be used on the last tax return of the decedent, or they are forever lost. Dawson U.S. Tax Court Opinions: Nadine L. Vichich Dawson U.S. Tax Court Opinions: Nadine L. Vichich
Practical Steps to Take
- Obtain death certificates: You’ll need multiple copies for various financial institutions and the IRS.
- Notify the IRS and Social Security Administration: Inform them of your spouse’s death as soon as possible.
- Gather tax documents: Collect all necessary tax documents for both you and your deceased spouse.
- Consult with a tax professional: Consider working with a tax professional who specializes in estate matters to ensure you’re making the most advantageous filing decisions.
- Update your withholding: If you’re employed, you may need to submit a new Form W-4 to adjust your tax withholding based on your new filing status.
- Consider future filing status: For tax years after 2025, determine if you qualify as a “qualifying surviving spouse” (also known as “qualifying widow(er)”), which allows you to use joint return tax rates for up to two years after the year of death if you have a dependent child.
Conclusion
Filing taxes after losing your spouse can be complicated, but understanding your options can help you make the best financial decisions during this difficult time. For your 2024 tax return, you can file jointly with your deceased spouse, which typically provides the most favorable tax treatment. For subsequent years, you may qualify for the surviving spouse status, which continues to provide some of the benefits of joint filing.
Remember that tax laws can change, and your specific situation may have unique considerations, so consulting with a qualified tax professional is always recommended.
Try Your AI Tax Assistant for Free!
Ready to transform your practice with agentic AI in tax? See firsthand how our cutting-edge AI tax tools can revolutionize your approach to tax research and planning.