Filing Status

[drv0563]

Turbotax is not providing the correct filing status.  I used the IRS interactive tool to confirm that I have the correct filing status but there is a glitch in the Turbotax program.  Even though my facts have not changed from 2020 and there have been no law changes, the 2021 program has made an incorrect determination.  I have an EA certification with the IRS and have already had the filing status reviewed by a tax agency.   When I tried to discuss this with support and also explained that I am hard of hearing and needed ADA accommodation, they would not comply.  They said they would email me a ticket so that I can provide proof and support of the error, but never did.  Has anyone else experience this?   

[DoninGA]

What filing status are you trying to enter? 

Are you legally married?  Are you not married?  Are you a widow or widower?  Do you have a dependent child or other person that is your dependent?

[Mike9241]

it is very easy to answer the question one way at the IRS website and a different way when doing Turbotax because the phrasing is different.

[drv0563]

I agree but Turbotax results should agree with the IRS interpretation, not the other way around.  Also, Turbotax should be consistent from one year to the next when there are no changes in the law or circumstances.  I have worked in taxes over 30 years and only found out about the widower filing status allowed for 3 years even though there was no dependent when I attended IRS training to be an IRS volunteer tax preparer.

[VolvoGirl]

I'm pretty sure Turbo Tax agrees with the IRS on that.  What is your IRS link?

You can file a Joint return the year your spouse died.  For the next two years following a husband's or wife's death, the surviving spouse can file as a qualifying widow or widower if they have a qualifying child. That basically lets you continue to use the same tax brackets that apply to married-filing-jointly returns.  After the year of death if you don't have a child you file as Single.

See

https://ttlc.intuit.com/community/using-turbotax/help/how-should-i-file-my-return-if-my-spouse-recen...

[VolvoGirl]

See IRS pub 501 bottom of page 9

https://www.irs.gov/pub/irs-pdf/p501.pdf 

[drv0563]

Widower. The IRS interactive link is:    What Is My Filing Status? | Internal Revenue Service (irs.gov)  or    https://www.irs.gov/help/ita/Answers to Your General Filing Questions

Below is the results in bold and input of the interactive link:
What is my filing status?
Your filing status is qualifying widow(er).
Your General Information
What tax year are you asking about? 2021
In 2021, did you pay more than half the cost of keeping up a home in which you lived? Yes
Family Information
What was your marital status on the last day of 2021?
Widowed (spouse died before the tax year)
Persons for Whom You May Get Tax Benefits
Kim
Kim's General Information
What is Kim's relationship to you? Biological child
What is Kim's date of birth? 12/9/90
Did Kim provide more than half of his or her own support for 2021? No
Did Kim live with you for all of 2021 (including any temporary absences)? Yes
Filing Status
Spouse
Did your spouse die during 2019 or 2020? Yes
Were you entitled to file a joint tax return with your spouse for the year your spouse died? Yes
Dependents
Kim's Dependent Status
Did you provide more than half of Kimberly Johnson's support during 2021? Yes what-is-my-filing-status   

I have been working in taxes over 30 years and learned of this 2 years ago after my spouse passed away while attend IRS training to be an IRS volunteer tax preparer.  I also had my home state change my filing status, appealed it, and won.  

My frustration is that Turbotax got it right in 2020 but have 2021 as single which is incorrect based on the above, no change in tax law, and no change in my circumstances.  2021 is the last year I can claim this tax status.  And support told me they would send an email so I could provide this, but closed it instead.  It was so frustrating talking to them and they admitted they did not have tax experience/certifications, although working towards it.

[drv0563]

You are correct.  And the qualifying child does NOT need to be a dependent, which she is not.  When they are not a dependent you list their name on the return.  I did not have a dependent in 2020 or 2021 but I had a qualifying child for both years.  Turbotax recognized that in 2020 but will not for 2021.  It does not make any common sense.

[DoninGA]

IRS Publication 501 Dependents, Standard Deduction, and Filing Information page 10 - https://www.irs.gov/pub/irs-pdf/p501.pdf#page=10

Eligibility rules. You are eligible to file your 2021 return as a qualifying widow(er) if you meet all the following tests.
1. You were entitled to file a joint return with your spouse for the year your spouse died.  It doesn't matter whether you actually filed a joint return.
2. Your spouse died in 2019 or 2020 and you didn't remarry before the end of 2021.
3. You have a child or stepchild (not a foster child) whom you can claim as a dependent or could claim as a dependent except that, for 2021:
a. The child had gross income of $4,300 or more,

b. The child filed a joint return, or
c. You could be claimed as a dependent on someone else’s return

4. This child lived in your home all year, except for temporary absences. See Temporary absences, earlier, under Head of Household. There are also exceptions, described later, for a child who was born or
died during the year and for a kidnapped child.

5. You paid more than half the cost of keeping up a home for the year. See Keeping Up a Home, earlier, under Head of Household. 

[Critter-3]

 " I have worked in taxes over 30 years and only found out about the widower filing status allowed for 3 years even though there was no dependent when I attended IRS training to be an IRS volunteer tax preparer."

Not sure who taught you but the qualifying widower status is for only 2 tax years after the year of death when you can still file a joint return. And you still must have a qualifying dependent for that status as well as for HOH filing status ... read up on these rules  in the IRS pub 17.   The first 2 days of the H&R Block  basic tax course  teaches filing status and dependents  so I don't know where you learned to do taxes and missed these very important topics that are the first two chapters of the Pub 17 which is the basic textbook for any tax pro. 

Form the pub 17 page 25:

If your spouse died in 2021, you can use married filing jointly as your filing status for 2021 if you otherwise qualify to use that status. The year of death is the last year for which you can file jointly with your deceased spouse. See Married Filing Jointly, earlier. You may be eligible to use qualifying widow(er) as your filing status for 2 years following the year your spouse died. For example, if your spouse died in 2020, and you haven't remarried, you may be able to use this filing status for 2021 and 2022.

[drv0563]

Exactly.  He died in 2019, so I can use it for 2020 and 2021.  The training was through the IRS as a volunteer. Nothing to do with H&R Block.  I have an EA (enrolled agent) certification through the IRS which was extensive testing, including this very same topic.  And I won a state appeal on this same thing!

[drv0563]

That information/publication is what I pointed out to Turbotax and they could not understand it!!!!!  If you go to the software for that item and click on information, that is even incorrect.  It should read like the publication, but does  not.

[Critter-3]

Eligibility rules. You are eligible to file your 2021 return as a qualifying widow(er) if you meet all of the following tests.

• You were entitled to file a joint return with your spouse for the year your spouse died. It doesn't matter whether you actually filed a joint return. 

• Your spouse died in 2019 or 2020 and you didn't remarry before the end of 2021.

• You have a child or stepchild (not a foster child) whom you can claim as a dependent or could claim as a dependent except that, for 2021: a. The child had gross income of $4,300 or more, b. The child filed a joint return, or c. You could be claimed as a dependent on someone else’s return. If the child isn't claimed as your dependent in the Dependents section on Form 1040 or 1040-SR, enter the child's name in the entry space at the bottom of Chapter 2 Filing Status Page 25 the Filing Status section. If you don’t enter the name, it will take us longer to process your return.  (this is newer and very unusual  and the program will not do this for you automatically...  this must be an override in the downloaded program which will void the accuracy guarantee and may keep you from efiling).   

•This child lived in your home all year, except for temporary absences. See Temporary absences, earlier, under Head of Household. There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child.

•You paid more than half of the cost of keeping up a home for the year. See Keeping Up a Home, earlier, under Head of Household.