How to Deal With the Widow’s Tax Penalty

Losing a spouse can trigger a hidden financial hit through higher taxes and reduced income.
How to Deal With the Widow’s Tax Penalty
The widow’s tax penalty can quietly increase taxes just as income declines. beauty-box/Shutterstock
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Losing your spouse can be one of the most emotionally devastating moments to go through. And it also can bring about unintended financial hardship.

This is part of what financial advisers call the widow’s tax penalty. It essentially means that the surviving spouse could face lower income, higher tax rates, and higher health care costs through surcharges on Medicare premiums.

Javier Simon
Javier Simon
Author
Javier Simon is a freelance personal finance writer for The Epoch Times. He specializes in retirement planning, investing, taxes, fintech, financial products and more. His work has been featured by major publications including Fox Business, The Motley Fool, NerdWallet, and Money Magazine.