Qualifying Widower Filing Status

[mbdkweaver]

I have a client who’s spouse passed away. They have a child who is claiming herself on the her tax return age 24. There are no other dependents. My understanding is you can file qualifying widower status for 2 years with a qualifying dependent. My first answer was that the spouse could not file this way because the child is claiming herself. But I ran into one of the bullet points under filing status and it seems to give an exception for the not meeting the gross income test as follows for this filing status. Does this mean, since the only reason she can’t be claimed as a dependent is because of the gross income test, that this filing status would still be available even though the spouse isn’t claiming her as a dependent because of her income level? She made a total of $16,000 this year. Any help would be appreciated.

Have a child, stepchild, or adopted child who qualifies as the taxpayer’s dependent for the year or would qualify as the taxpayer’s dependent except that he or she does not meet the gross income test, or does not meet the joint return test, or except that the taxpayer may be claimed as a dependent of another taxpayer.

[Rapid Robert]

That exception for a dependent only began with tax year 2017, before that the qualifying person had to meet all the tests including gross income test for QR. I don't know what led to the change, must have been either a new law or some court case. Of course, you still need to check the other tests, such as the parent must be providing more than half of support (which is different from income), the child must live in the parent's home the entire year, etc. The QW filing status is supposed to provide a two year transition from MFJ to HOH for someone with children, and the gross income exception does not exist under HOH status, so it doesn't really make sense, but making sense is not a factor.

[Rapid Robert]

I forgot this was discussed here a little over two years ago. Apparently the change goes back to a law passed in 2004, which IRS finally got around to issuing regs for beginning 2017. NYEA agreed with me at the time that the law was somewhat poorly written.

https://forum.thetaxbook.com/forum/discussion-forums/main-forum-tax-discussion/296177-qualifying-widow?p=296220#post296220

[New York Enrolled Agent]

Rapid Robert is correct about the changes - surviving spouse (aka QW) was modified by the Working Families Act in 2004 - the words in red were added.
§152(d)(1)(B) is the gross income test - so Weaver you're good to go.

(a) Definition of surviving spouse

(1) In general

For purposes of section 1, the term "surviving spouse" means a taxpayer -

(A) whose spouse died during either of his two taxable years immediately preceding the taxable year, and

(B) 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.

[mbdkweaver]

Thank you very much for your assistance with this. I appreciate your quick responses.

[dtlee]

Rapid Robert is correct about the changes - surviving spouse (aka QW) was modified by the Working Families Act in 2004 - the words in red were added.
§152(d)(1)(B) is the gross income test - so Weaver you're good to go.

(a) Definition of surviving spouse

(1) In general

For purposes of section 1, the term "surviving spouse" means a taxpayer -

(A) whose spouse died during either of his two taxable years immediately preceding the taxable year, and

(B) 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.

While I agree with the interpretations above I am wondering if the regulations for this or other sections specifically clarify that when the code says, "with respect to whom the taxpayer is entitled to a deduction for the taxable year under section 151" that the IRS believes (as appears to be the case) that this specifically excludes §151(e):

No exemption shall be allowed under this section with respect to any individual unless the TIN of such individual is included on the return claiming the exemption.

The reason I ask is that recent 1040s no longer include the Tax ID Number for this status nor Head of Household when the dependent is not so claimed.