Standard vs itemized for surviving spouse?

[Kristi13]

My stepfather died in 2022, and he and my mom previously filed separately. Can she file with itemized deductions for 2022 regardless of whether his 2022 filing is with standard or itemized deductions?

[xmasbaby0]

So sorry for your loss.   Your mother can file using standard or itemized deductions---whichever is better for her if she files a joint return.  The fact that your step-father passed away has no bearing on that.   She can file a joint tax return for 2022, and use all of their itemized deductions if she wants to.   Whether the itemized deductions affect her refund or tax due will depend on whether the itemized deductions exceed the amount of the standard deduction.  

However, if for some reason she chooses to file as married filing separately for 2022, then she must go by the rule that says if one spouse uses itemized deductions, the other spouse must itemize too.  So her spouse's final return would have to be itemized---even if it is disadvantageous.  When a married couple files married filing separately, they each have to use their standard deduction, or each can itemize.  It cannot be one of each.  

You do not say why she may want to file separate returns.   Provide some details----did your step-father owe back taxes?  Child support?   Is there some reason she would want to avoid filing a joint return?

 For the year that your spouse died, you can still file a joint return.  That way, you will get the married filing jointly standard deduction of $25,900 (+ $1400 for each spouse 65 or older) which will lower the amount of income you are taxed on.

In My Info, you will need to indicate that your spouse died. When his name is in My Info,  there is a screen early in the interview that asks "Do any of these apply to [name] ?’” where you will do that, and then a drop down will appear where you can enter the date he passed.

If you have qualifying dependent children you will be able to file as a qualifying surviving spouse  (QSS) for the next two years after this tax return.  Post back if you need further help.

https://blog.turbotax.intuit.com/tax-planning-2/tax-implications-for-taxpayers-who-have-lost-a-spous...

deductions without considering the caps and thresholds that must be met?

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2022 Form 1040.

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[Kristi13]

Thank you. This is helpful. My mom and stepfather filed separately because it was the second marriage for both, both had separate properties but lived together, and both had grown children. They wanted to keep their moneys separate. After his death, his children wanted to file his taxes, and my mom wanted to file hers. She knows it would have been a tax advantage to file as a qualified widow, but did not want to involve his family further. She is indicating on her taxes that he died during the tax year. 

Given this, would she have to find out how his children filed (standard vs itemized) before she could file hers (standard vs itemized), or is it the first one to file sets the rule for the second?

[xmasbaby0]

She needs to know how her spouse filed.   She still has to follow the rules---each spouse's return must be the same--either itemized or standard deduction.  

[Kristi13]

Is the determining factor who files first sets the way for the second, or dose his filing establish standard vs itemized regardless of the timing for her filing, or does her filing for standardized vs itemized take priority over his?

[VolvoGirl]

It doesn't matter who files first.  It's simply if one spouse itemizes the other spouse must itemize also.  If the other spouse already filed with the Standard Deduction they will have to amend and change to Itemized.  Unless one spouse (or both) qualifies for Head of Household.  That can affect if you have to itemize or can take the Standard Deduction.  

[Kristi13]

Sorry, I must be missing something. I understand that both must file standard or both must file itemized. What happens if the decedent's executor (eldest son) wants to file standard and the surviving spouse wants to file with itemized deductions. Which side rules?

[DoninGA]

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@Kristi13 wrote:

Sorry, I must be missing something. I understand that both must file standard or both must file itemized. What happens if the decedent's executor (eldest son) wants to file standard and the surviving spouse wants to file with itemized deductions. Which side rules?

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Whomever's tax return is accepted by the IRS first.

[Kristi13]

Update: I just got off the phone with the IRS. The agent said that my mom could file with itemized deductions (as another had posted above). If my stepfather's 2022 filing is itemized, then no action would be taken. If his filing is standard, the IRS would send a letter to the filing party to say that the standard deduction would be zero or that his filing could be amended to itemize. The agent pointed to Publication 501, page 7, Special Rule #11. Thank you all. I learned a lot today!

[NCperson]

just for posterity for whomever reads this thread: 

from Pub 501, page 7, rule 11: 

"If your spouse itemizes deductions, you can't claim the standard deduction."

"If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return."

[Opus 17]

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@Kristi13 wrote:

Given this, would she have to find out how his children filed (standard vs itemized) before she could file hers (standard vs itemized), or is it the first one to file sets the rule for the second?

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No.  Her decision to use the itemized deduction will force her husband's family to also use the itemized deduction, even if they filed first.  They would have to file an amended return.  The spouse who chooses to itemize forces the issue, not the other way around. 

[Opus 17]

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@Kristi13 wrote:

Sorry, I must be missing something. I understand that both must file standard or both must file itemized. What happens if the decedent's executor (eldest son) wants to file standard and the surviving spouse wants to file with itemized deductions. Which side rules?

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@DoninGA 

xmasbaby0

My expert friends are confused.

If your mother chooses to file as married filing separately, her choice to itemize will force the husband's family to use the itemized deduction also.  The spouse who chooses to itemize drives the situation, not the spouse who uses the standard deduction or the spouse who files first.  If the husband already itemized, then no problem.  If the husband used the standard deduction, the husband's family will get a letter informing them that his return must be amended.  The end result is that both spouses use the same method (itemized or standard) but it is the decision of one spouse to use itemized deductions that drives the result for the other. 

Now, it is possible that if this is a 2022 return and your husband's family already filed using the standard deduction, your tax return with itemized deductions might be rejected from e-filing, due to the conflict.  In that case, print your return, sign it and mail it in.  You are still allowed to use the itemized deduction even if your husband's family filed first and used the standard deduction.  

(I am, of course, ignoring the possibility that you could file jointly with your deceased spouse for 2022, since you have decided not to do that for other reasons.)

[NCperson]

@Critter-3 - 

sorry but I think you are suggesting that the surviving spouse can not file MFS.  Can you point to where in Publication 501 (or another publication) that is stated? I can't find that. 

further, to document that filing MFS is possible: 

1) the IRS app to determine filing status certainly permits MFS for the surviving spouse.  Suggest running this scenario through the app.

https://www.irs.gov/help/ita/what-is-my-filing-status

2) In the training provided to IRS volunteers, the decision tree certainly shows the option for the widowed spouse to file MFS.  See the schematic on page 50. 

https://www.irs.gov/pub/irs-pdf/p4012.pdf

While I see where the wording "can file MFJ" is stated in pub. 501, that doesn't mean they can't file MFS.  It just means a single living person can file MFJ in this circumstance. 

Lastly, I also do not see in the publication where the taxpayer has the option to file SINGLE or HOH.  (even if that option existed,  what would be the financial incentive?).   I've always seen the filing status as very rules driven.  And other than the option to file MFS or MFJ, there are no rules that provide any flexibility to choose a filing status.  (how could the taxpayer file HOH or SINGLE in the year of the spouse's passing if the marital status is consider 'married' on 12/31; HOH and SINGLE requires the taxpayer to be "unmarried" to take advantage of these filing statuses - and someone can't be 'married' and 'unmarried' at the same time the way the IRS definitions work.  

thoughts? 

[VolvoGirl]

And pub 501 page 6 first column says.......

Spouse died during the year. If your spouse died during the year, you are considered married for the whole year for filing status purposes.

[NCperson]

@VolvoGirl - that is my point.... and if you are considered 'married' for the entire year, you can't be considered "unmarried", so SINGLE and HOH filing statuses are not available to you as these two filing statuses have a "unmarried" requirement.