The year a spouse dies, the surviving spouse can still file taxes jointly with their deceased partner—known as “married filing jointly”—unless they remarry before the end of that tax year. Afterward, many older survivors must file on their own using the “single” filing status, which often results in higher taxes due to smaller standard deductions and narrower tax brackets.
Losing a spouse is devastating on its own, but the financial aftermath can bring an unexpected and costly tax burden at an already difficult time. Fortunately, couples can plan ahead to help reduce this impact.
Ed Jastrem, Chief Planning Officer at Heritage Financial, spoke with CNBC about this often-overlooked challenge and how thoughtful planning can make a meaningful difference.