IRS rules are always being updated. Verify the following with IRS to ensure that you are following current law.
In the year of the veteran's death the spouse and veteran will be considered as though they had been married for the entire year. If the spouse does not remarry in that tax year, there is the option for filing a joint return and claiming exemptions for both.
The surviving spouse may be entitled to the surviving spouse benefit. This enables the spouse to compute taxes using the tax rate schedule under the heading "married taxpayers filing joint returns and certain widows and widowers". There is the potential of substantial tax savings.
To qualify you must:
1. You must be entitled to file a joint return for the year of death. (You don't have to actually file jointly).
2. You have not remarried
3. You have a child or stepchild who qualifies as your dependent; and
4. You furnish over half the maintenance of your home, which is the principal abode of your dependent child or stepchild, except for temporary absences.
Check with the IRS for eligibility to file in this category.
End of Page