Abigail's Most Beneficial Filing Status for 2020

What is Abigail's most beneficial filing status for 2020?

Choose the correct option:

A. Single

B. Head of Household

C. Qualifying Widow(er) with Dependent Child

Final Answer:

Abigail's most beneficial filing status for 2020 is "Qualifying Widow(er) with Dependent Child."

Explanation:

Abigail's most beneficial filing status for 2020 is "Qualifying Widow(er) with Dependent Child." This status allows her to use the more favorable tax rates and higher standard deduction of a married individual filing jointly for two years after Todd's death, as long as she has not remarried and maintains a household for her dependent child, Madeline.

To qualify for this status, several conditions must be met:

1. Abigail's spouse, Todd, passed away in 2019, which satisfies the condition of being a widow(er) within the tax year.

2. Abigail did not remarry in 2020 or in the two previous tax years, preserving her eligibility for this status.

3. Abigail lived with her dependent child, Madeline, for the entire year, with no one else residing with them.

4. Abigail paid for all the expenses of maintaining their home.

By meeting these criteria, Abigail can use the Qualifying Widow(er) filing status for 2020, which offers a more favorable tax treatment compared to filing as a Single taxpayer or Head of Household. It allows her to benefit from the tax advantages of a married couple for an additional two years following her spouse's death.