I was widowed in 1998, and a friend told me she heard there are some tax breaks for widows. Can you help?
Yes. As a widow, you may file a joint return for 1998. In addition, if you still have a dependent child at home, you may use the joint return rates for 1999 and 2000 as well. And if you and your husband owned rental property, don’t forget that it qualifies for a step-up in tax basis to its value at the date of his death. That means more depreciation currently, and less taxable gain when you sell it. This also applies to other appreciated assets, such as stock and mutual funds.
When my husband died, I collected some life insurance. Should I pay off the car, house and credit cards, or should I invest it?
First, set aside an emergency fund (generally three to six months’ expenses). Then pay off your non-deductible car loan and credit card debt. If the interest rate on your home mortgage is less than you can earn on investments (about 8-10%), keep the loan and invest your money for income or long-term growth, depending on your needs.
I am a 62-year-old widow and I am collecting social security benefits
based on my deceased husband’s earnings. I’d like to remarry, but I don’t want to lose those benefits. A friend told me that happened to her mother. Is that true?
Fortunately, your benefits will continue even after you remarry. In the bad old days, widows did lose their benefits upon remarriage, so a lot of seniors began living together instead. Congress mended that rip in our nation’s moral fabric in 1984.
My husband died recently. He never discussed his financial affairs with me, but he always told me I’d be taken care of. I think he meant there was life insurance, but I don’t know what life insurance policies he owned. How can I make sure I’ve collected all the insurance benefits due me?
Write to the American Council of Life Insurance, Policy Search Dept., 1001 Pennsylvania Ave., NW, Washington, DC 20004. Request a missing policy search form and enclose a legal-size self-addressed, stamped envelope. When you return the complete form, they will send it to the life underwriters who are members of the Council. Those companies will search their files to see if your husband was covered by a life insurance policy issued by them. This search will take about three months.
I am a senior,retired widow and just re-located to California from Las Vegas, NV to be near family. Am I allowed to deduct my moving expenses on my Federal Tax Return? (or is moving expenses tax deductible just for job relocation? What taxes am I allowed to deduct on my Federsal Tax Return? (other than medical, donations)? Are sending faxes for my lease tax deductible? Please let me know. Also, how long does one have to reside in a State to pay their State taxes? In my case the State is California. Thank you. Julianna H. Annarella
Julianna, Moving expenses are deductible if you are employed full time for most of the year following the move. Expenses in connection with obtaining personal housing aren’t deductible either. To see a listing of what’s deductible, go to IRS.gov and look at Form 1040, Schedule A. But remember, if you don’t itemize you’ll still get a standard deduction of $5,950, even more if you are over 65. And finally, you are taxed by the state in which you reside, so if you move to California intending to be a resident, your income from that day forward is taxed by California.
My husbend just pass on the 17 of oct. He was a retired man from the military. I want to kno if i keep is monthly benefits. Or what should i do. I dnt wanna get in to trouble.
Ty.
I mean his retired monthly benefits or do i return them?. We were married for 36 years.
Oh, I’m so sorry to hear of your loss. I hope you are getting comfort and help from those around you who love you and your family. The first thing to do is to call 800-321-1080 to report the death of your husband. Since his entitlement to retirement pay ends on the date of his death, when his death is reported, DFAS will take back his final month’s pay and compute the amount of the payment actually owed to you as his beneficiary. If you have more questions, you can ask them when you call to report his death.
My husband passed away he was 68 years old. I was told I could draw widow’s pention when I become 60 years old, how much do you usaually get from this.I have 4 years to wait I’m just curious. thank you
I’m so sorry to hear of your loss. If you wait to collect widow’s benefits from social security until you are 66, you can get 100% of the benefits your husband had earned. You can begin drawing reduced social security widow’s benefits at age 60 of about 70% of what you would get if you wait until age 66.
Is there any way that I can reduce the taxes I pay on my deceased husband’s pension? He worked for 25 years for the phone company in Massachusetts.
If I move to Nevada, can I eliminate paying taxes on his pension?
Is there any way to lower the taxes that I pay as a widow on my deceased husband’s pension?
Can I collect social security benefits as well as his pension now that I am a widow?
Thank You
Do contact the Social Security Administration by calling 1-800-772-1213, and inquire about collecting on your husband’s social security record. Hopefully you are due back benefits as well as benefits going forward.
If you move to a state without an income tax such as Nevada, you won’t be paying state income tax any longer, but you will still owe federal income taxes on your income.
I am now 70 years old and collecting my husband’s pension. He died at age 60 9 years ago.
Please refer to my earlier message ….from Marion Marianse.
Thank you
My husband passed at53 in april. No pension I have one 17 year old and a21year old in college. 17 get benefits 21 year old doesnt and is a full time college student. Will make lress than 35000 in 2012. How do I file to get most refund back. Would like to pay off funeral. Still owe 3500. One life insurance policy paid 5000 off and used it directly to funeral. Where dimo i go for advice?
I’m so sorry to hear of your husband’s passing. For 2012 you can file a joint tax return with your deceased husband, and for 2013 and 2014 you can file as “surviving spouse”. Both of those filing statuses use the “married filing jointly” tax rates, which will be most favorable for you.
I stumbled upon this website while searching how to file next year. My husband died in April of 2012 and I knew I had to file as married jointly this year but I didn’t know about the surviving spouse status for the next 2 years. Thank you!!!
I started collecting on my own social security at age 62. When my husband passes can I still collect on his Social Security benefits which are much more than my own as I took early Social Security or will I be penalized because I started collecting on my own at 62 years of age?
He is still employeed and in addition collecting his own Social Security presently – he’s 67 years old.and I am 66.
Thanks
Yes, you’ll be able to switch to widow’s benefits when he dies, based on his earnings record.
My husband passed away in april 2012. How do i file for income tax? Do i have to claim life insurance that i recieved? Also he worked up until he passed away. How does that work?
Sonya, I’m so sorry to hear of your loss. You can file a joint tax return with your deceased husband — you will sign your name twice, once on the line for his signature, with the notation “Attorney in fact”, and once on the line for your name. Life insurance proceeds aren’t taxable, but if there was a delay in you receiving the payout and the insurance company paid you interest, they will be sending you a 1099-INT form telling you how much interest to report. His wages will be reported on the line of the tax return that says “wages” – - you should receive a W-2 from his employer.
my husband died Dec.24th 2009. I am a Dential Hygienist ,now 49 years old. I have a pretty good job, why can I not collect my husbands social security till I am 60.? Is what I was told…and when I retire, want I be collecting my social security that I’ve paid in? Where does his go that he paid in to for 25 yrs?
The earliest age at which you can receive widow’s benefits is age 60. Remember those benefits are for retirement, which is why the social security system has them beginning when people are 62 — for widow’s that date is lowered to age 60, and if you collect before age 65, the benefits are reduced. If you earn more than $15,120 a year, the benefits will be reduced further by $1 for every $2 your earn over $15,120, so if you are still working you likely should delay collecting benefits until age 65. You can collect your own benefits when you retire, but you can’t double up — you’ll get whichever record gives you more. It may pay you to continue getting your widow’s benefits but delay collecting your own benefits until age 70, which will increase your benefits by 8% per year you delay over age 66, so that would be another 32% added to your benefits. That would be a good strategy if your enhanced benefits would exceed your widow’s benefits.
My husband passed in July 2012.. He was on social security for kidney failure. He was 53. Does SSI send me a w2 for his SSI received up to his death? I received one for the one month of benefits for July 2012.
Can I claim his medical bills? Thks.
I’m so sorry for your recent loss. You should have received a reporting form SSA-1099 already — perhaps that’s the one you say you’ve received. You can file a joint tax return with him for 2012 and claim his medical bills on that tax return, to the extent they exceed 7.5% of your total income. You’ll sign that joint return twice — one on the line for his signature, signing your name followed by “attorney in fact”, and once on the line for your own signature.
Hi..My husband passed Sept 2011. I received workers comp widows pension and filed our taxes for 2012 jointly. I don’t work and am 59 yrs old. I now own our two propertys both rentals one is rent to own and handled via a realestate agent. The other property is not and I don’t know if I file taxes on any of this. Please inform me what to do.
Thanks
Lee
You will file your own tax returns for 2012 and future years, and you will report your widows pension, rental incomeon the properties less expenses paid out on them, and all other income and deductions that you have. If you still have minor children in your home, you can use the joint tax tables for 2012 and 2013 — otherwise you will use the single tables. A competent tax preparer can help you assemble the documentation you need and prepare the return.
My husband passed in Aug 2012. I’ve received several notices from debtors for cancellation of debt (Sallie Mae & higher education), I thought these debts were forgiven upon death? I’m under the impression that ill need to file jointly this year & as a surviving spouse for the next two years, is that the way it has to be done?
Many student loans are canceled upon death, and you say you’ve been receiving notices to that effect, so it apears that his loans are among those that are canceled upon death. The income from cancelation of death is taxable, but if he is deceased, then that is probably a moot point. Here’s a Forbes article that discusses the issue: http://www.forbes.com/sites/robertwood/2012/09/20/theres-no-escape-death-taxes-and-student-loans. You can file a joint return in the year of death, and then use the joint tax schedules in the next two years if you have children at home.
My husband passed away suddenly in December of 2012. His wages and Social Security (he was 69) were our only source of income as I am a housewife. We had no life insurance and the survivor Soc. Sec. payments won’t begin until I’m 60 (2 more years). We have a mortgage that is not backed by government programs and I have not been able to make the payments. We had never been late or missed a payment for the life of the loan. I managed to find a part time job and my husband had a small IRA. I asked them to modify my existing loan, but they are unresponsive and just keep demanding payment. Is there any organization out there I can contact to help me understand exactly what kind of options I may have in this situation?
Here’s an article from Zillow that walks you through the procedure for getting a home loan modification: http://www.zillow.com/loan-modification/
Be persistent!
My husband became extremely depressed and chemically dependent. We seperated in April 2012. I and our two young children moved out. I filed for divorce and we were set to have our court hearing in November 2012. He lost his job in May – they said they eliminated his job and laid him off (he got severance and was able to collect unemployment), but we all knew it was because he was unable to perform his job duties. In July, he took $64,000 out of his 401K to live on. He spent some of it, sent some of it to me for child support, and then ultimately mailed me a check for $27,000 the day that he killed himself in October 2012. We were technically still married, not legally seperated or divorced. My understanding is that I have to pay his income taxes for 2012 including the early withdrawal penalty on his 401K. This is costing me $15,000 total. I thought I heard something about being able to avoid the penalty if you are on unemployment for 12 weeks or something, but my husband was too disabled by his depression to file for unemployment regularly. He only collected $1500 in unemployment, which I think is about five weeks. I really appreciate any advice you can give me! I want to avoid paying his early withdrawal penalty if at all possible. Thank you!
There is no exception to penalties for unemployment. Here are the exceptions the IRS lists at its website:
The following six exceptions apply to distributions from any qualified retirement plan:
•Distributions made to your beneficiary or estate on or after your death.
•Distributions made because you are totally and permanently disabled.
•Distributions made as part of a series of substantially equal periodic payments over your life expectancy or the life expectancies of you and your designated beneficiary. If these distributions are from a qualified plan other than an IRA, you must separate from service with this employer before the payments begin for this exception to apply.
•Distributions to the extent you have deductible medical expenses (medical expenses that exceed 7.5% of your adjusted gross income), whether or not you itemize your deductions for the year. For more information on medical expenses, refer to Topic 502.
•Distributions made due to an IRS levy of the plan under section 6331.
•Distributions that are qualified reservist distributions. Generally, these are distributions made to individuals that are called to active duty for at least 180 days after September 11, 2001.
Since there is no exception to the penalties, you should explore whether you really owe his taxes. You were separated, so you could file your own return as head of household, and his return could be filed as married filing separately. His taxes would be due from the assets in his estate. If he had no assets at the time of his death, then the government would be out of luck. But reading between the lines of your message, it appears he might have had money remaining in his 401(k) at the time of his death, and so those funds would have to be used to settle the government claim.
Thank you for your thoughtful and researched response.
So the money left in his 401K would be considered part of his estate even if I was listed as the beneficiary? I didn’t know that. I’ve already had that money transferred to my name.
I just figured as Wisconsin is a shared property marital state that I would be held responsible for his debts, including taxes, upon his death. Since we weren’t legally seperated.
My husband passed suddenly December 2012, he filed bankruptcy, I did not. The bankruptcy held up the foreclosure, I house is and has been up for sale. I was working on getting requesting a “Short Sale from the bank”. I have not disclose to the bank that he died because his bankruptcy was discharged, Am I in trouble, someone said I will be in trouble. We had joint survivor-ship on the property.
Since his death, you became the sole owner of the property, so the discharge of his bankruptcy and subsequent death probably won’t impact the short sale, which is a sale by you alone.
HI,
I am advising a friend on her 2012 taxes. She became widowed in November of 2012. She and her husband owned a business together, and in the absence of his guidance, she did not file 1099s for herself (main employee) or one other non-employee (maybe $5000 in income). Shall I have her contact the IRS immediately? Any other benefits I may be missing, as in funeral expenses….
She should go ahead and file the 1099s now, no need to contact the IRS. Funeral expense are not tax-deductible for income tax purposes.
Hi, I was recently widowed in January 2013. I have 5 children…22, 20 (severe Autism), 18, 10, 8. He was a business owner with his father. I have not worked out of the home in over 10 years. I need some advice on how and if I should file income taxes for 2012. He was very sick the entire year. He did show earnings of $40K for the year. His father keeps me in “the dark” most of the time. I am very worried about what to do at this point.
For 2012 you can file a joint tax return. You can sign it as yourself and on his behalf by signing your name, followed by “attorney in fact”. For 2013 and 2014 you will file your own tax return but you will use the joint tax rates as a surviving spouse, which will reduce your taxes.
my husband died in 2003 and i herd that i should be getting a widows rebate. i don’t have any taxes from the past. i’m on disabilty. i do get a renter rebate how would i go about getting a widows rebate if i even quilfie
I’m not familiar with a widows rebate — perhaps it is a program in your state. Ask the person who told you about it for more details, or call 211 if that’s available in your area and ask them if they’ve heard of it.
My father passed away in 95 and my family has been under stress since. Ive been trying to research 2 things to help our situation,
1. Is there a way to prevent someone from opening up credit cards? Like power of attorney? My mom keeps opening up cards and piling on debt. (This one is off topic so I understand if you’re unsure)
2. Is there a property tax break on our house for a widow? My mom said she saw it somewhere one time but I cant find it. We also need to appeal the value of our house because at this point, they expect us to pay 13,000 in property taxes this year and we cant afford it. we tried to file an appeal but they said it was too late this year.
I feel like these might be off topic, but you have a lot of knowledge so any feedback would be helpful. My mom is a widow with nine children so we are trying to help the best we can.
Thank you
W
If your mom is incompetent to handle her own affairs, you might be able to be appointed as her guardian. But if she simply has poor money management skills, then I don’t know what you can do. The credit card companies will eventually catch on that she has too much debt compared to income and/or can’t meet the payments, and they will then quit giving her new cards — that’s the theory, anyway. Call the assessors office to inquire about any widow’s tax break that might be available in your locale. There isn’t one where I live