What Is the Widow’s Tax?

Описание: What is the “widow’s tax,” and why can losing a spouse suddenly trigger a higher tax bill? Today, Liz explains how tax brackets change after a spouse passes away and why many widows and widowers end up paying significantly more in taxes on the same income. Using a real client scenario, Liz walks through practical strategies to reduce the impact- from smart deduction planning and donor-advised funds to timing Roth conversions. She also shares proactive steps couples can take now to protect a surviving spouse’s financial future.

Here’s some of what we discuss in today’s show:

What the “widow’s tax” is and why tax brackets change after losing a spouse
How the same income can move someone into a much higher bracket
How tax-deferred accounts and deduction strategies can help soften the impact
Why donor-advised funds can be useful for managing taxes during high-income years
Steps married couples can take now to reduce the tax burden on a surviving spouse

0:00 – Intro
1:14 – Client example
2:29 – Strategies to reduce impact
4:49 – What couples can do

#widowstax #widow #taxplanning #financialplanning

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