I have a Senior client where she and her husband lived in separate nursing home before his death in 2023. Both taxpayers had not filed a tax return in several years according to their daughter because their income was below the standard deduction. In 2023 the surviving spouse received a 1099-R for her late husband's IRA and used those funds to pay for her Nursing home expenses in 2023 until her LTC policy became effective. Up until the time the LTC policy kicked in the tax payer paid the four months of nursing home costs directly out of pocket medical amounting to $38K. Can I file her return as MFS vs MFJ in the year of her spouse's death? When I review the MFJ vs MFS comparison she would save over $2,000 in tax liability. I can not find anything on the IRS website if this is allowed in the year of her spouses death or does it really matter? I know this is an odd ball question but I would like to save this elderly blind woman some tax liability if it is in accordance with the IRS. Any feedback would be helpful. Thank you.
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