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Multiple Choice Practice Question Filling Status
Bob Wilson died on October 1 of the current tax year. Bob was married to Rita. Bob's two children (ages six and eight) lived with the couple full time. The children will continue to live the Rita. What filing status should Rita use in the year of death and subsequent years in which the unmarried children continue to live with her? - Rita should file single, head of household, or married filing separately in the year of death and then head of household for all subsequent years.
- Rita should file as married filing jointly in the year of death and then as a qualifying widow (surviving spouse) for all subsequent years
- Rita should file married filing jointly in the year of death, then qualifying widow with dependent child for two years, and then head of household for all subsequent years
- Rita should file head of household in the year of death and all subsequent years.
Correct answer is 3) When a married taxpayer dies during the year, the filing status for that year is determined as of the date of death. Because the couple was married when he died, the surviving spouse can file a joint tax return for the year of death. For the next two years, the surviving spouse can file as a qualifying widow or widower if there is a dependent child (child, stepchild, adopted child or a foster child) living in the taxpayer's home. After those two years, Rita will qualify as head of household as long as she does not remarry and either an unmarried child or dependent relative lives with her.
(Source: cpareviewforfree website) |
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Tax term definition section
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Tax term definition
"Statute of Limitations "
The statute of limitations is the time available to correct errors on a return by both the taxpayer and the government. The statute is normally three years from the due date of the return. If the taxpayer files before the due date, the statute still starts to run on the due date for the return. If the taxpayer files an extension, the statute starts to run when the return is filed. However, if there is fraud involved, there is no statute of limitations. If the taxpayer omits more than 25 percent of the income reported, the statute of limitations is six years.
(Source: IRS website)
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