Grieving a lost spouse is hard enough, but you may feel another blow when tax time comes.
Without planning, surviving spouses may be surprised to see their taxes rise sharply despite lower income due to the “widow’s penalty” built into the tax code. The penalty occurs when the surviving spouse’s tax status reverts from married filing jointly to single. The standard deduction shrinks and tax brackets narrow—a double whammy for widows.
Not only may the surviving spouse face higher taxes, but they may also face higher Medicare premiums and Social Security taxes because both have income limits. More often, women suffer a penalty because women live an average of five years longer than men, said Katie Carlson, head of wealth strategy at Bank of America Private Bank.
“It’s tough,” Carlson said. “There’s no way to avoid it completely.” But there are ways to reduce it, he said.
How does the widow’s penalty work?
Here’s how widows are punished:
- The 2026 standard deduction for married couples over age 65 is $35,500, but it drops to $18,150 for single filers. The lower standard deduction may mean higher taxable income for the widow, even if losing a Social Security check results in a decline in total income.
- A couple with taxable income of $100,000 would fall into the 12% tax bracket that applies to taxable income between $24,801 and $100,800. The same income, or even less, will be taxed at a rate of 22% for incomes between $50,401 and $105,700.
- Higher taxable income may also trigger Medicare’s income-related monthly adjustment amounts (IRMAA) after two years, which will phase out in 2026 at $109,000 for single filers and $218,000 for married joint filers. Above $109,000, Medicare beneficiaries will pay $95.70 more monthly, or about $1,150 annually, than a beneficiary who does not pay IRMAA.
- Surviving spouses may also have to pay more taxes on their Social Security. A single filer needs to have combined income of more than $34,000 – adjusted gross income, nontaxable interest and half of Social Security – to be taxed on 85% of their monthly benefits, while joint filers need to have more than $44,000.
How can you reduce the widow’s penalty?
Planning early – before someone passes away and before essential minimum distributions and social security begin – is always preferred, advisors said. But if you didn’t, you may still have a small window to maneuver.
“The first year is critical,” said Patrick Simasko, senior attorney and financial advisor at Simasko Law. “If I die today, we will have only five months’ income, but the married couple will get a tax deduction for this year. You should withdraw as much money as possible while staying in a better tax bracket.”
Generally, joint status only lasts for the year in which the spouse dies, but in some circumstances, widows may last longer than this. A qualified surviving spouse (QSS) who has not remarried and has a dependent child or stepchild can file jointly and claim the larger standard deduction for two years after death, said Richard Pon, a certified public accountant in San Francisco. After the QSS period ends, you may be able to file as head of household, which has a higher standard deduction than filing single.
Take advantage of the lower tax rate with some Roth conversions, said Shannon Stevens, managing director of Hightower Signature Wealth.
Also, review IRAs and taxable accounts and consider moving to more tax-efficient investments like index funds and exchange-traded funds (ETFs) to minimize capital gains distributions and reduce taxable income, Stevens said.
Your income from charitable contributions also reduces. If you are at least age 70½, a qualified charitable distribution can be made directly from a retirement account. If you do this at age 73 or older, it can count toward your required minimum distributions.
Medora Lee is the money, markets and personal finance reporter at USA TODAY.