What Is the Widow Penalty? The Hidden Tax Trap That Hits When You’re Most Vulnerable
Losing your spouse is devastating—but what if the tax system made your grief even worse? While most couples focus on building retirement security together, there’s a hidden financial trap waiting in the shadows: the widow penalty. This often-overlooked tax burden strikes when you’re most vulnerable, potentially reducing your household income by 50% while simultaneously increasing your tax rates and healthcare costs. The cruel irony? You’ll likely pay higher taxes on less income. Even more shocking? Most financial advisors never address this until it’s too late.