Financial Planner

Category - Tax Planning

Your client’s husband just died. She has an 8 year old daughter. How long may your client file jointly for federal taxes?
  1. One year
  2. Two years
  3. Indefinitely
  4. Once the spouse has passed, the surviving spouse must file single or head of household.
Explanation
Answer: B - A surviving spouse with a minor child may file jointly for two years. An income tax return must still be filed for a decedent for the year of death. The decedent has a short tax year that ends at the date of death; however, deductions, exemptions, and credits can be taken in full. Income in respect of decedent is income that comes after dean and will become part of the decedent’s estate. Medical expenses paid during the year following death may be filed either on the decedent’s final return or estate tax return. Any charitable contributions that cannot be used on the final return because of AGI limitations are lost.
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