Losing a spouse can be an incredibly challenging time. Amidst the emotional turmoil, there's the daunting task of dealing with finances and filing income taxes at the end of the year.

Facing the aftermath of a loved one's death is challenging, and dealing with income tax returns can add to the stress. However, the steps outlined here can make the process more straightforward.

Step #1- Identify the filing status

The first step in filing income taxes after the death of a spouse involves determining your filing status. If your spouse passed away during the tax year, the IRS still considers you married for the entire year for tax purposes. Therefore, you must file a joint return using the "Married Filing Jointly" status.

However, if you have dependent children, you may be able to use the "Qualifying Widow(er) with Dependent Child" status for two years following the death, granting you the same benefits as a joint return. A financial or tax professional can help determine the filing status for your situation and clarify any questions you may have.

Even if your spouse filed married filing separately, income taxes must be filed for the year of their death.

Step #2- Gather the necessary documents

After establishing the filing status, compile all necessary tax documents for the year. These may include:

• W-2s
• 1099s
• 1098 (mortgage interest statement)
• and more

Be sure to gather tax forms your spouse would have received during the year up until their death. Prior-year tax returns may aid in determining deductions or credits used to claim exemptions that qualify this year.

Step #3- Report all income

You must report the income your deceased spouse received before death on the joint return. Also, the income received after death, such as dividends or interest from property, must be reported on your spouse's final return. Be sure to include any Social Security benefits or retirement distributions received.

Step #4- Claiming tax deductions and credits

You can claim the same deductions and tax credits as when your spouse was alive. These may include deductions for mortgage interest, tax preparation fees, and medical expenses not reimbursed by health insurance. The IRS limits some of these deductions and tax credits depending on income. For this reason, visit with a tax professional to understand which deductions and tax credits your household qualifies for.

Step #5- Sign on behalf of your spouse

While signing your spouse's final return, use your name, followed by "filing as surviving spouse." If the tax return is a joint return, sign it once on your behalf and then again on behalf of your deceased spouse.

Considerations for estates

It's legal to sign for a deceased spouse only if you are the executor or administrator of their estate. Due to the complexity of filing these returns correctly, seeking professional guidance is essential to avoid errors. Financial, legal, and tax professionals specializing in estate planning can help work toward complying with tax regulations and avoid potential mistakes that could lead to penalties or unnecessary stress. Additionally, depending on the size and complexity of the estate, a federal estate tax return. The IRS provides guidelines about who must file this return and what it should include.

Since some states require an estate tax return, seek assistance from financial and tax professionals, and don’t try to face the tax filing challenge alone.