If your spouse passes away, thinking about how it might affect your taxes and your Medicare health insurance premiums is probably not front of mind. But there is an impact, and it might be more than you would expect. Here’s what you need to know.
Impact on Your Federal Income Tax Rate
If you and your now-deceased spouse have always filed joint federal income tax returns, as almost all married couples do, you might find yourself in a higher tax bracket than before because you’re now filing as a single taxpayer.
For federal income tax purposes, your marital status at the end of the year applies for the entire year. So, if your spouse dies in 2026, you’re treated as unmarried for 2026 unless you remarry by the end of the year. Either way, your 2026 income will include both your income and your now-deceased spouse’s income.
Here are the 2026 tax rate brackets. As you can see, the beginning amounts of the brackets for singles are much lower than for married couples.
Ordinary Income | Single | MFJ |
10 percent tax bracket | $0-12,400 | $0-24,800 |
Beginning of 12 percent bracket | 12,401 | 24,801 |
Beginning of 22 percent bracket | 50,401 | 100,801 |
Beginning of 24 percent bracket | 105,701 | 211,401 |
Beginning of 32 percent bracket | 201,776 | 403,551 |
Beginning of 35 percent bracket | 256,226 | 512,451 |
Beginning of 37 percent bracket | 640,601 | 768,701 |
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