An Overview of the Surviving Spouse Filing Status

The surviving spouse filing status unlocks key married filing jointly benefits

A taxpayer’s filing status choice drives many downstream tax attributes, including tax bracket structure, available deductions and credits, and more.

Marital status determines the filing status options available. Taxpayers determine their marital status on the last day of the tax year, unless their spouse died during the tax year, when they use their status on the date of the spouse’s death.

For unmarried taxpayers, the three options are:

1. Single,

2. Head of household (HOH), or

3. Surviving spouse.

For married taxpayers, the three options are:

1. Married filing jointly (MFJ),

2. Married filing separately (MFS), or

3. Head of household (if considered unmarried under §7703(b) or married to a nonresident alien under §2(b)(2)(B)).

The surviving spouse filing status is relatively uncommon. The IRS used to use the term qualifying widow(er), but now uses the term qualifying surviving spouse (QSS).

Surviving Spouse Benefits

The surviving spouse filing status key benefits include the use of the MFJ tax brackets (§1(j)(2)(A)) and the MFJ standard deduction amount (§63(c)(2)(A)(ii)). Whether a surviving spouse gets MFJ benefits under any other provision depends on the structure of that specific Code provision.

For example, with respect to the §24 child tax credit modified adjusted gross income (MAGI) phase-out, §24(h)(3) states: “…the threshold amount shall be $400,000 in the case of a joint return ($200,000 in any other case).” The surviving spouse child tax credit begins to phase out at $200,000 of MAGI.

On the other hand, with respect to the 3.8% net investment income tax, §1411(b)(1) states that the MAGI threshold amount “in the case of a taxpayer making a joint return under section 6013 or a surviving spouse (as defined in section 2(a)), $250,000.” The surviving spouse uses the MFJ threshold in this case.

Surviving Spouse Requirements

A surviving spouse must meet three requirements under Treas. Reg. §1.2-2(a)(1):

1. Their spouse died during either of the two tax years immediately preceding the tax year, and they were eligible to file a joint return in the year of death,

2. They maintain a home as a household that, for the tax year, is the principal place of residence for a son, stepson, daughter, or stepdaughter, and

3. They claim the son, stepson, daughter, or stepdaughter as a §151 dependent.

Example

Travis’s first wife died in 2016 while married to him. Travis married his second wife in 2018, who then died in 2019. Travis remained unmarried after that time. Over the years, Travis had a young son whom he maintained in his household and claimed as a dependent.

In 2016, Travis could file MFS or MFJ, but in 2017, he is eligible for QSS.

In 2018 and 2019, Travis could file MFJ or MFS, but in 2020 and 2021, he is eligible for QSS.

In the tax years Travis qualifies for QSS, he also qualifies for HOH; however, it is almost certain that QSS would result in the lowest tax liability.

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