How to Deal With the Widows Tax Penalty

The widow’s tax penalty can quietly increase taxes just as income declines. beauty-box/ShutterstockLosing your spouse can be one of the most emotionally devastating moments to go through. And it also can bring about unintended financial hardship.This is part of what financial advisers call the widow’s tax penalty. It essentially means that the surviving spouse could face lower income, higher tax rates, and higher health care costs through surcharges on Medicare premiums.