Survivor's Tax Trap: Avoiding the 'Survivor's Penalty'

Surviving spouses face unexpected financial challenges due to higher taxes after losing a partner. This survivors penalty occurs when filing taxes as a single individual instead of jointly, leading to less favorable tax brackets, smaller deductions, and fewer tax breaks. This issue disproportionately affects heterosexual couples due to differing life expectancies. Proactive planning, ideally five to ten years before retirement, can help mitigate these tax consequences.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.