Qualifying for Surviving Spouse Status

[dtlee]

Update From the Oldprofessor

My main purpose in originating this post was to start a discussion about the 3 subsections of Sec. 152 (previously posted) that are not applied in determining a dependent for purposes of surviving spouse status.

I have a related question and would prefer to cite 2(a)(1)(B) more completely:

who maintains as his home a household which constitutes for the taxable year the principal place of abode (as a member of such household) of a dependent

(i) who (within the meaning of section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) is a son, stepson, daughter, or stepdaughter of the taxpayer, and
(ii) with respect to whom the taxpayer is entitled to a deduction for the taxable year under section 151.

For purposes of this paragraph, an individual shall be considered as maintaining a household only if over half of the cost of maintaining the household during the taxable year is furnished by such individual

First, while I cannot speak to intent, while I think your interpretation may likely be the only correct one, had I written the first part, I would have written it as you excerpted it, thusly:

who maintains as his home a household which constitutes for the taxable year the principal place of abode (as a member of such household) of a dependent (within the meaning of section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof)

(i) who is a son, stepson, daughter, or stepdaughter of the taxpayer, and
(ii) with respect to whom the taxpayer is entitled to a deduction for the taxable year under section 151.

For purposes of this paragraph, an individual shall be considered as maintaining a household only if over half of the cost of maintaining the household during the taxable year is furnished by such individual

The way it currently stands could indicate that these relationships are somehow not constrained by the sections indicated. I am unsure how the relationships could be so constrained, so this would seem to be an invalid interpretation.

Hence, if I ignore this minor point, my concern lies with 2(a)(1)(B)(ii) above where it states "and with respect to whom the taxpayer is entitled to a deduction for the taxable year under section 151." I don't see how that fits with 2(a)(1)(B)(i). Am I missing something or doesn't a dependent qualifying for an exemption need to meet the "un-relaxed" rules?

There are two possibilities that I can surmise from this.

1. §151 generally won't allow the deduction unless those subsections of §152 are met for a Qualifying Child or a Qualifying Relative. Hence, it would seem to contradict the "relaxed" rules of (i) which are not similarly relaxed for (ii) and thus, the child who does not need to meet the rules for (i) would need to meet them for (ii).
2. It is saying that these rules are relaxed for both (i) and (ii) thus allowing an exemption for the son, daughter, stepson, or stepdaughter who met the "relaxed" rules of (i).

Please hold back on the attacks since I am not claiming that my interpretation is in any way correct. I am just trying to add to the discussion of what these may or may not mean.

I have been pondering this for some time.

[TAXNJ]

Update From the Oldprofessor

My main purpose in originating this post was to start a discussion about the 3 subsections of Sec. 152 (previously posted) that are not applied in determining a dependent for purposes of surviving spouse status.

How are the responses from the students in your review?

[oldprofessor]

Update From the Oldprofessor

My main purpose in originating this post was to start a discussion about the 3 subsections of Sec. 152 (previously posted) that are not applied in determining a dependent for purposes of surviving spouse status.

[TAXNJ]

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Additional Information Added to Original Post

Assume in 2015 that one of two parents died. A full-time student daughter, Jane, age 20 and her 2-year-old child, Timmy, lived with both parents during 2015 and lived with the surviving parent during the entire 2016 year.

The surviving spouse can file a joint return for 2015. The following issues relate to the 2016 tax year and possibly 2017.

I have been unable to find any examples of how these “relaxed tests” are applied, so I have created my own interpretations discussed below.

Issue 1 (b)(1) Qualifying Child (QC): If Jane is her surviving parent’s (QC) for 2016, (Timmy, the surviving spouse’s grandchild would also be the surviving spouse’s QC) does the waiver of the ineligible dependents requirement allow Jane to qualify her parent as a surviving spouse for qualifying widow(er) status while allowing Jane to claim Timmy (surviving spouse’s grandchild) on Jane’s personal return and claim child tax credit, earned income credit, and child and dependent care credit on the Jane’s return? The tie-breaker rules would allow Jane to claim Timmy on her personal return.

Issue 1 (b)(1) Qualifying Relative (QR): If Jane was not a full-time student during 2016, but lived with her surviving parent and Timmy in the same household, she would be a (QR). Does the waiver of the application of the gross income amount allow a surviving parent to qualify for qualifying widow(er) filing status if all other qualifying relative requirements for Jane are satisfied except the qualifying relative has gross income in excess of the exemption amount?

The QR tests of (1) not a QC of any other taxpayer, (2) relationship test, (3) residence test does not apply for a son or daughter, (4) surviving spouse would have to support Jane in order to count her for surviving spouse filing status. Jane can have gross income in excess of the exemption amount that allows a surviving spouse to qualify for that filing status based on the waiver of the application of this requirement. If the QR’s gross income that exceeds the exemption amount allows Jane to provide over half of her own support, then the surviving spouse cannot qualify for that qualifying widow(er) status, as she does not provide over one-half of the QR’s support.
Issue 2 (b)(2) Qualifying Child (QC): Assume Jane is married and lives with her husband, Timmy, and her mother in the same household. If Jane and her husband file a joint return, the waiver of this provision (b)(2), above, would allow a surviving spouse to meet qualifying widoer(er) filing status if all conditions for a qualifying child are satisfied. The married dependent would not qualify a parent for surviving spouse if the married dependent provided more than half of her own support, as she would not satisfy this QC requirement.

Issue 2 (b)(2): Qualifying Relative (QR): Assume Jane is married and not a full-time student during 2016, lives with her husband, surviving parent and Timmy in the same household. Jane could file a joint return with her spouse and Timmy. She would be a (QR) if all conditions of a QR were satisfied. The QR gross income test and the joint return test are waived for this purposes of determining Jane’s parents surviving spouse status. Jane would qualify a surviving parent for qualifying widow(er) filing status. The surviving spouse would have to provide over one-half of the QR’s support, as that requirement is not waived. Jane would not have to live with her surviving spouse parent to qualify her surviving paretn for qualifying widow(er) status as the QR abode test does not apply to a relative. However, the surviving spouse would have to provide over half of Jane’s support.

Issue 3 (d)(1)(B): Dependent’s gross income is less than the exemption amount: This issue has been covered in the preceding comments.

Related Issue: Do the words, “is entitled to a deduction” from Sec. 2 (a)(1)(B)(ii) mean that the surviving spouse has to claim an exemption deduction on the surviving spouse’s tax return, or only has to be “entitled to a deduction” and let the qualifying relative with gross income more than the exemption amount, the married dependent, and the unmarried qualifying child or qualifying relative with dependents claim the actual exemption deduction on their own return with these three subsections being waived?

Your "Related Issue "...mean that the surviving spouse has to claim an exemption ...".

However, would think that the word "entitled" used in §1.2–2 (iii), means one does "not" have (has) to. The others in your scenario(s) “if” entitled (according to the IRC) to their exemptions and or deductions would be, if the surviving spouse does not.

See if §1.2–2 addresses your scenario(s).

§1.2–2 (iii) He is entitled for the taxable year to a deduction under section 151 (relating to deductions for dependents) with respect to such son, stepson, daughter, or stepdaughter.

[Rapid Robert]

Additional Information Added to Original Post

Assume in 2015 that one of two parents died. A full-time student daughter, Jane, age 20 and her 2-year-old child, Timmy, lived with both parents during 2015 and lived with the surviving parent during the entire 2016 year.

The surviving spouse can file a joint return for 2015. The following issues relate to the 2016 tax year and possibly 2017.

I have been unable to find any examples of how these “relaxed tests” are applied, so I have created my own interpretations discussed below.

Issue 1 (b)(1) Qualifying Child (QC): If Jane is her surviving parent’s (QC) for 2016, (Timmy, the surviving spouse’s grandchild would also be the surviving spouse’s QC) does the waiver of the ineligible dependents requirement allow Jane to qualify her parent as a surviving spouse for qualifying widow(er) status while allowing Jane to claim Timmy (surviving spouse’s grandchild) on Jane’s personal return and claim child tax credit, earned income credit, and child and dependent care credit on the Jane’s return? The tie-breaker rules would allow Jane to claim Timmy on her personal return.

Could you please summarize what you mean by "relaxed tests"? I've never heard that term used in this context before.

As for your first issue 1 (b)(1) (I think you have two 1(b)(1)s in there), I think I know the answer without looking it up, but I'm a little rusty on this topic compared to the days when I was working at the big blocky chain store. If Jane can be claimed as a dependent (whether she is or not), then Jane cannot have her own dependents.

As for the rest of your scenarios, this does sound a little like what TaxNJ said, maybe an academic assignment of some kind?

[FEDUKE404]

Answer

. . .
But why does IRS form 1040 include a "Filing Status" - titled "Qualifying widow(er) with dependent child "
. . .

Perhaps so that the IRS computers and client's tax software can implement the correct MFJ tax rates and the higher standard deduction that accompanies QW ??

Otherwise the widow(er) would be looking at filing status of single or perhaps HOH absent meeting the requirements for the phantom QW?

FE

[TAXNJ]

Yes. But before this post turns into reply posters giving IRS code sections, (for example, 26 CFR 1.2-2 - Definitions and special rules - (a)Surviving spouse.) this post can be resolved very simply with the replies given as of this date.

Have to agree with you that "I don't believe the phrase "qualifying widow" is used anywhere in the IRC. If anyone can find it, I'd appreciate the insight."

But why does IRS form 1040 include a "Filing Status" - titled "Qualifying widow(er) with dependent child ". Also, the term "qualifying widow(er)" is used in IRS Publication 17 vs the IRC. Now is that a contradiction? Or was there a reason to use the term?

Bottom line is that TTB; Publication 17 covers what to consider filing if there is the case of what is a "surviving spouse" when a "Spouse died during the year" and/or Qualifying Widow(er) With Dependent Child.

As far as the Original Post - maybe it was meant for students taking a tax course in college or law school and accidentally showed up in the "forum".

[New York Enrolled Agent]

FE writes: There is a world of difference between a surviving spouse and a qualifying widow status.


I'm not sure what OldProfessor is actually asking but understand that he is using the correct terminology.

You may have a different (a more common sense) interpretation as to the term surviving spouse but the Internal Revenue Code at section 2 defines surviving spouse in a way which translates into the equivalent of what we call qualifying widow/widower. I don't believe the phrase "qualifying widow" is used anywhere in the IRC. If anyone can find it, I'd appreciate the insight.

In your post you refer to the standard deduction. If you look at IRC §63, you will find the standard deduction is defined to be the same for married couples who file jointly and surviving spouses (as defined in section 2). No mention of QW.

The OldProfessor has the definitions correct but he/she needs to rephrase the question in the original post.

[FEDUKE404]

QW rules are more stringent

There is a world of difference between a surviving spouse and a qualifying widow status.

From the IRS Pub 17, re Qualifying Widow(er) requirements:

Qualifying Widow(er) With Dependent Child

If your spouse died in 2016, you can use married filing jointly as your filing status for 2016 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) with dependent child as your filing status for 2 years following the year your spouse died. For example, if your spouse died in 2015, and you haven't remarried, you may be able to use this filing status for 2016 and 2017.

This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you don’t itemize deductions). It doesn't entitle you to file a joint return.
How to file. If you file as qualifying widow(er) with dependent child, you can use Form 1040. If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Check the box on line 5 of either form. Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax.

Eligibility rules. You are eligible to file your 2016 return as a qualifying widow(er) with dependent child 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 2014 or 2015 and you didn't remarry before the end of 2016.

You have a child or stepchild for whom you can claim an exemption. This doesn't include a foster child.

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 the cost of keeping up a home for the year. See Keeping Up a Home , earlier, under Head of Household.

FE

[TAXNJ]

Yes.

The TaxBook summaries the Code Sections and subsections you referenced as follows:

Qualifying Widow(er) (QW)
The QW filing status is available for the first two years following the year a spouse died, provided all the following requirements are met.

• The spouse died in 2014 or 2015 and the taxpayer did not remarry in 2016.
• The taxpayer has a child or stepchild that the taxpayer can claim as a dependent. This does not include a foster child.
• The child lived in the taxpayer’s home for all of 2016. If there is a temporary absence for special circumstances, the child is not considered to be away from home, such as for school, vacations, medical care, business, military service, or detention in a juvenile facility.
• The taxpayer paid over half the cost of keeping up a home.
• The taxpayer filed a joint return with deceased spouse in the year of death or could have filed a joint return that year.
If the taxpayer’s spouse died in 2016, the taxpayer is married for 2016 and cannot file as a Qualifying Widow(er) until 2017.

[WhiteOleander]

Hi, I noticed this is your first post. I'm not sure what you are asking. Maybe if you gave more info, we could better understand your question.

Welcome to TTB

[oldprofessor]

Code Sec. 2(a) defining who is a dependent for qualifying widow(er) (QW), aka, surviving spouse, defines a dependent by reference to Sec. 152, “determined without regard to subsections (b)(1),(b)(2), and (d)(1)(B) thereof is a son, stepson, daughter, or stepdaughter of the taxpayer…”
The 152 subsections relate to:
a) (b)(1) Dependents ineligible-A dependent claimed on someone else’s tax return cannot have any dependents on their own personal return.

b) (b)(2) Married dependents-A married individual cannot be claimed on another person’s tax return if the married individual made a joint return with her spouse.

c) (d)(1)(B) Dependent’s gross income is less than the exemption amount-This applies to a qualifying relative dependent.

Has anyone experienced using one of the “relaxed tests” to qualify a surviving parent for surviving spouse/QW status?
----------------------
Additional Information Added to Original Post

Assume in 2015 that one of two parents died. A full-time student daughter, Jane, age 20 and her 2-year-old child, Timmy, lived with both parents during 2015 and lived with the surviving parent during the entire 2016 year.

The surviving spouse can file a joint return for 2015. The following issues relate to the 2016 tax year and possibly 2017.

I have been unable to find any examples of how these “relaxed tests” are applied, so I have created my own interpretations discussed below.

Issue 1 (b)(1) Qualifying Child (QC): If Jane is her surviving parent’s (QC) for 2016, (Timmy, the surviving spouse’s grandchild would also be the surviving spouse’s QC) does the waiver of the ineligible dependents requirement allow Jane to qualify her parent as a surviving spouse for qualifying widow(er) status while allowing Jane to claim Timmy (surviving spouse’s grandchild) on Jane’s personal return and claim child tax credit, earned income credit, and child and dependent care credit on the Jane’s return? The tie-breaker rules would allow Jane to claim Timmy on her personal return.

Issue 1 (b)(1) Qualifying Relative (QR): If Jane was not a full-time student during 2016, but lived with her surviving parent and Timmy in the same household, she would be a (QR). Does the waiver of the application of the gross income amount allow a surviving parent to qualify for qualifying widow(er) filing status if all other qualifying relative requirements for Jane are satisfied except the qualifying relative has gross income in excess of the exemption amount?

The QR tests of (1) not a QC of any other taxpayer, (2) relationship test, (3) residence test does not apply for a son or daughter, (4) surviving spouse would have to support Jane in order to count her for surviving spouse filing status. Jane can have gross income in excess of the exemption amount that allows a surviving spouse to qualify for that filing status based on the waiver of the application of this requirement. If the QR’s gross income that exceeds the exemption amount allows Jane to provide over half of her own support, then the surviving spouse cannot qualify for that qualifying widow(er) status, as she does not provide over one-half of the QR’s support.
Issue 2 (b)(2) Qualifying Child (QC): Assume Jane is married and lives with her husband, Timmy, and her mother in the same household. If Jane and her husband file a joint return, the waiver of this provision (b)(2), above, would allow a surviving spouse to meet qualifying widoer(er) filing status if all conditions for a qualifying child are satisfied. The married dependent would not qualify a parent for surviving spouse if the married dependent provided more than half of her own support, as she would not satisfy this QC requirement.

Issue 2 (b)(2): Qualifying Relative (QR): Assume Jane is married and not a full-time student during 2016, lives with her husband, surviving parent and Timmy in the same household. Jane could file a joint return with her spouse and Timmy. She would be a (QR) if all conditions of a QR were satisfied. The QR gross income test and the joint return test are waived for this purposes of determining Jane’s parents surviving spouse status. Jane would qualify a surviving parent for qualifying widow(er) filing status. The surviving spouse would have to provide over one-half of the QR’s support, as that requirement is not waived. Jane would not have to live with her surviving spouse parent to qualify her surviving paretn for qualifying widow(er) status as the QR abode test does not apply to a relative. However, the surviving spouse would have to provide over half of Jane’s support.

Issue 3 (d)(1)(B): Dependent’s gross income is less than the exemption amount: This issue has been covered in the preceding comments.

Related Issue: Do the words, “is entitled to a deduction” from Sec. 2 (a)(1)(B)(ii) mean that the surviving spouse has to claim an exemption deduction on the surviving spouse’s tax return, or only has to be “entitled to a deduction” and let the qualifying relative with gross income more than the exemption amount, the married dependent, and the unmarried qualifying child or qualifying relative with dependents claim the actual exemption deduction on their own return with these three subsections being waived?