In June of year 1, Eric's wife Savannah died. Eric did not remarry during year 1, year 2, or year 3. Eric maintains the household for his dependent daughter Catherine in year 1, year 2, and year 3. Which is the most advantageous filing status for Eric in year 2?

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Quizplus · Accepted Answer

Qualifying widower status allows Eric to use the higher standard deduction and more favorable tax brackets for married taxpayers for two years after Savannah's death. This status also allows Eric to keep the benefits of filing jointly, such as eligibility for certain itemized deductions and credits. Since Eric did not remarry during year 1, year 2, or year 3, he is still eligible to file as a qualifying widower in year 2. This is more advantageous than filing as head of household or single, as those statuses have lower standard deductions and less favorable tax brackets. Married filing separately is also not advantageous, as it would result in Eric losing many tax benefits he would have as a qualifying widower.

In June of Year 1, Eric's Wife Savannah Died