How does divorce affect my tax filing status and deductions?

Divorce changes your tax filing status from married to single, which can significantly affect your tax brackets, standard deductions, and eligibility for certain credits. You may also need to negotiate which spouse claims dependent children.

What should I know about filing taxes independently for the first time?

When filing independently, gather all necessary tax documents, understand your filing status implications, ensure you have proper identification, and consider working with a CPA to navigate new deductions and credits you may now qualify for.

What is the survivor's penalty and how does it affect widow filing status?

The survivor's penalty occurs when a surviving spouse's tax bracket and deductions change significantly after a spouse's death, often resulting in higher taxes. Understanding this and planning accordingly can help mitigate its impact.

How do inherited retirement accounts affect my taxes?

Inherited retirement accounts may require you to take required minimum distributions that are added to your taxable income. The rules vary by account type and relationship to the deceased, so professional guidance is essential.

Why should I review my Social Security benefits after my spouse's death?

Your spouse's death may affect your own Social Security benefits and any dependent children's eligibility for survivor benefits. Reviewing and adjusting your planning accordingly ensures you receive all benefits you're entitled to.

What is estate portability and why does it matter?

Estate portability allows a surviving spouse to use the deceased spouse's unused estate tax exemption. Documenting property values and planning for this can significantly reduce estate taxes for your heirs.

When should I work with a CPA after a major life change?

You should contact a CPA immediately after divorce, a spouse's death, or becoming financially independent. Planning before tax season arrives allows you to make strategic decisions and file accurately.

Is a tax filing extension the same as an extension to pay?

No. An extension to file gives you more time to submit your return, but you still owe taxes by the original deadline. If you can't pay by then, you'll owe interest and penalties on the unpaid amount.

Your New Tax Reality – Episode 58

Sep 3, 2026 | Estate Planning and Legacy, Life and Reirement Planning | 0 comments

THE ABOUT PODCAST | EPISODE 58

Your New Tax Reality

How major life changes can affect your filing status and financial plan

Life events can change more than your daily routine. Becoming financially independent, getting divorced, or losing a spouse can also change how you file your taxes and create financial implications you may not be prepared for.

Episode Summary

Roy Hucke and Jeremy Scott are joined by Lance Larson of CPA Group of the Rockies to discuss what happens when your tax filing status changes. They explain how filing independently for the first time, divorce, and the death of a spouse can affect tax brackets, deductions, dependents, retirement accounts, Social Security, and estate-planning decisions.

From gathering the right tax documents to understanding inherited accounts, property appraisals, estate portability, and filing extensions, this conversation offers practical guidance for preparing before tax season arrives.

Key Topics & Takeaways

The life events that can trigger a change in tax filing status.
What young adults should know when filing independently for the first time.
How divorce can affect filing status, tax brackets, deductions, and who claims dependent children.
What surviving spouses should understand about filing status and the potential "survivor's penalty."
How inherited retirement accounts and required minimum distributions may affect taxable income.
Why Social Security benefits should be reviewed following the death of a spouse.
The importance of documenting property values and considering estate portability.
When to contact a CPA and why planning before tax season can make the process easier.

Timestamps

0:00 – Introducing Lance Larson and the impact of changing tax filing status
1:10 – Life events that can create a new tax reality
4:43 – Filing independently for the first time and gathering tax documents
9:54 – The tax implications of divorce
12:00 – How filing single can affect tax brackets and deductions
13:32 – Dependents, children, and divorce-related tax negotiations
15:22 – Filing-status considerations following the death of a spouse
17:34 – Inherited retirement accounts, RMDs, and taxable income
21:01 – Social Security benefits for dependent children
24:01 – Preparing to file taxes independently after divorce or a spouse's death
32:01 – When a life change may mean it is time to work with a CPA
33:08 – Property appraisals, cost basis, and estate portability
38:44 – Qualified charitable distributions, RMDs, and Medicare costs
40:13 – Reviewing Social Security benefits after losing a spouse
43:03 – How to find and begin working with a CPA
45:28 – Why an extension to file is not an extension to pay

Guest & Resources

Download the Show Notes

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Download Episode 58 Show Notes (PDF)

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