Surviving Spouse- double checking

A friend asked me to look at a notice they received in response to a self prepared return. Aside from the issue below, the return was dead on for both Fed and State, which was impressive.

Their spouse passed in 2021 and they claimed surviving spouse status for 2022, based on using the IRS "whats my filing status" tool on their website. They have a child who did not provide over 1/2 of their support, lived with him for all 12 months, and was a full time student. The child turned 25 before the end of 2022.

The tool, once all this information was input, informed him that he was entitled to file as a surviving spouse. The notice disagreed, and changed the status to single. He was obviously confused as how this could be.

Looking into this, surviving status requires that there be a child who can be claimed as a dependent. CCH provides a reference to the definition of dependent, as either a qualifying child, or an other qualifying relative. To be a qualifying child, they must be less than 24 if a student. Accordingly, the child is not a qualifying child who can be claimed as a dependent due to age. That results in surviving spouse not being allowed, it appears.

Given that the filing status tool had all this information and yielded an incorrect result, I am questioning my conclusion.

Am I correct and this is a case of the IRS tool not giving an accurate answer, or did I misunderstand something along the way?

If I read it right, we plan to file an amendment to claim head of household as the child would be a qualifying person for that status.

Actually, technically the child does not have to be a dependent - some of the rules are omitted, in particular the gross income test for qualifying relatives. Nothing in your post suggests that the surviving spouse filing status was incorrect.

However, it is interesting that they made him single rather than head of household. Is it possible that the child filed a tax return claiming they could not be claimed as a dependent?

There's no such filing status as surviving spouse. If you mean qualifying widower then having a dependent is required.

Rule for surviving spouse status is have a child who qualifies as a dependent. While that appears to be straightforward, the dependent rules for children require them to be qualifying children, which means under age 24 at the outside unless disabled. Otherwise, they are an other qualifying relative.

My read is that means they are not a dependent child in this case.

The child did file a return as a dependent. So thats not the issue.

There's no such filing status as surviving spouse. If you mean qualifying widower then having a dependent is required.

Thats interesting, as the copy of the IRS tool provided to me states "Your filing status is qualifying surviving spouse".

Taxcpa, I agree you are 100% correct. Child fulltime student must be under age 24 at end of 2022. The term QSS replaced QW in 2022.

Did you try the IRS tool yourself? Regardless, its only takes 5 minutes to look up QSS in Taxbook/QF or Pub and regardless if IRS tool is right or wrong your friend should have checked with you before filing.

Taxcpa, I agree you are 100% correct. Child fulltime student must be under age 24 at end of 2022. The term QSS replaced QW in 2022.

Did you try the IRS tool yourself? Regardless, its only takes 5 minutes to look up QSS in Taxbook/QF or Pub and regardless if IRS tool is right or wrong your friend should have checked with you before filing.

I did try the tool, with the same results. Qualified surviving spouse. Given the kick out is the age, that should have been an easy thing to program but they apparently got it wrong.

There's no such filing status as surviving spouse. If you mean qualifying widower then having a dependent is required.

Sorry but you are wrong on both counts. The filing status QW will not be found anywhere in the IRC. It was IRS jargon at most. Look at the top of Form 1040 where you check filing status and tell us where you find QW. Actually you will find QSS on the top of the form and section 2 of the IRC defines the status.

Second, since the enactment of the Working Families Act, a taxpayer who correctly is eligible for QSS no longer needs to have a dependent child. Once again, go back to the top of the 1040 and read the second sentence.

The specific language found in IRC 2(a)(1)(B)

(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

IRC 152 covers both QC and QR. Furthermore, the reference to (d)(1)(B) is the gross income test for QR. However, there is a relationship test as well.

So to be an eligible dependent for the surviving spouse filing status we are left with:

1) a son, stepson, daughter, or stepdaughter of the taxpayer
2) the taxpayer provides over one-half of the individual’s support for the calendar year in which such taxable year begins
3) the taxpayer maintains maintains as his home a household which constitutes for the taxable year the principal place of abode (as a member of such household).
4) Citizen, national or resident of the US.

Not only do they not have to be an actual qualifying child, under 24. They don't even have to actually be a qualifying relative - the gross income test is excluded.

Not only do they not have to be an actual qualifying child, under 24. They don't even have to actually be a qualifying relative - the gross income test is excluded.

You are right. I read TB too fast. Got thrown by must be a child or step child but rules are more like qualifying relative without the income test and support test replaced by HOH half cost of keeping up home. Its really its own set of rules rather than qualifying child or relative rules.

Second, since the enactment of the Working Families Act, a taxpayer who correctly is eligible for QSS no longer needs to have a dependent child. Once again, go back to the top of the 1040 and read the second sentence.

Must be either dependent or could be claimed as a dependent on someone elses return. So if not claimed as a dependent on 1040 childs name is entered in spaces below filing status checkboxes on 1040.

Tax Monkey posted the code section. Slightly different language in the proposed reg. might also be of help.

Proposed Reg. 1.2-2. Definitions and special rules.

(a) Surviving spouse -

(1) In general. If a taxpayer is eligible to file a joint return under section 6013 (without applying section 6013(a)(3)) for the taxable year in which the taxpayer's spouse dies, the taxpayer qualifies as a surviving spouse for each of the two taxable years immediately following the year of the spouse's death if the taxpayer--

(i) Has not remarried before the close of the taxable year; and

(ii) Maintains as the taxpayer's home a household that is for the taxable year the principal place of abode of a son or daughter (including by adoption), stepson, or stepdaughter who is a member of the taxpayer's household and who is a dependent of the taxpayer within the meaning of paragraph (a)(2) of this section.

(2) Dependent. An individual is a dependent of a taxpayer for purposes of this paragraph (a) if the taxpayer may claim a deduction under section 151 for the individual, without applying sections 152(b)(1), (b)(2), and (d)(1)(B).

So if the IRS tool was right was there something on or not on the 1040 to cause the notice?

So if the IRS tool was right was there something on or not on the 1040 to cause the notice?

Pure speculation- taxpayer listed son as dependent and checked QC box. IRS matches SSA records and throws out son as dependent. No entry on top of 1040 for a name. Quickly goes from QSS to Single.

Like I said - pure speculation but I think it’s something along those lines.

Interesting information, thank you.

Sounds like the first step is to respond to the notice and disagree with the change. Ideally, the IRS will respond with their reasoning, or realize their error. Going to be some time before that happens.

There's no such filing status as surviving spouse. If you mean qualifying widower then having a dependent is required.

Sorry but you are wrong on both counts. The filing status QW will not be found anywhere in the IRC. It was IRS jargon at most. Look at the top of Form 1040 where you check filing status and tell us where you find QW. Actually you will find QSS on the top of the form and section 2 of the IRC defines the status.

Look at the top of Form 1040 where you check filing status and tell us where you find QW.

At the top of every Form 1040 from 1975 - 2021. It was just changed for the 2022 Form 1040.

Tax cpa. I would be checking 1040 along lines of post#13 as 1040X maybe needed.

Following up on this issue.

My friend sent a letter in response to the IRS notice, with a copy of the IRS online calculator showing him to be qualified as a surviving spouse. In the letter, he stated that he disagreed with the IRS determination he was not qualified, and asked for an explanation of the IRS determination.

Yesterday, he received a generic reply thanking him for his "amended return" and stating that they had made the adjustment he requested. The additional refund was received several days ago. It was a significant sum.

So, a win for the taxpayer with an impressive turn around time from the IRS.