Changes to Dependents and Filing Status

Some taxpayers do not realize the implications of losing a spouse, or a dependent child beginning to earn their own income.  In the year you lose a spouse, you can still file a Married Joint tax return.  In the year after your spouse passes, your filing status would change to Single (unless you have dependent children).  This could create tremendous tax implications.  We recommend that you come in and meet with us to discuss Your new tax situation for the first year you are filing a Single status tax return.

Once a child reaches a certain range and earns a certain income level, you can no longer claim them as a dependent unless they are still a student.  These rules can be complicated and nuanced.  This can often force a taxpayer to change their filing status from Head of Household to Single.  This change has significant tax implications.  Feel free to reach out to us if you think you might be affected by a change in the status of one of your dependents.