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Joe Diamond, CPA, CFP®, EA, MST


Diamond Financial Corporation

4256 North Arlington Heights Road, Suite 204

Arlington Heights, IL 60004


Phone: 847-884-8500 




November/December 2020

Tax Tips for Recently Widowed

1. Claim Your Tax Refund
You may be entitled to your deceased spouse’s tax refund.
2. Sell Your Home
If you have a highly appreciated marital home, consider selling it within two years. This preserves a much larger $500,000 capital gains exclusion than the $250,000 exclusion available to single filers.
3. Assess Life Insurance Needs
Your life insurance needs may have changed. Meet with your financial professional to review your new situation.
4. File as Head of Household
If you were able to file as a qualifying widow(er) for two years you’ll have to change your tax filing status in year three. If you are providing support to a child, grandchild, sibling or other relative, you may qualify for head of household status. This is normally preferable to filing as a single taxpayer.
5. Social Security
If you were both taking a Social Security income benefit at the time of your spouse’s passing, you will now only be receiving one of those benefits. However, the new benefit should be the larger of the two.
6. Remarriage
Remarriage in the same year as one’s spouse died would require the widow(er) to file as either married filing jointly with their new spouse or married filing separately. With either, a married filing separately tax return would need to be filed for the deceased spouse.


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Advisory Services offered through Diamond Financial Corporation, Registered Investment Advisor. Custodial Services provided by TD Ameritrade. Member FINRA/SIPC/MSRB.
Tax Preparation provided by Diamond Financial Corporation.
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