A is corrent. Parker should file as a "Qualifying widow(er) with dependent child" since it will enable her to use the joint return standard deduction and joint return tax rate schedule. This filing status is available for the two taxable years following the year of a spouse’s death if (1) the surviving spouse was eligible to file a joint return in the year of the spouse’s death, (2) does not remarry before the end of the current tax year, and (3) the surviving spouse pays over 50% of the cost of maintaining a household that is the principal home for the entire year of the surviving spouse’s dependent child.
Choice "b" is incorrect. Parker would not qualify as head of household for
the first two years after the death of Parker's spouse because one of the
requirements for Head of Household status is that the taxpayer is NOT a
surviving spouse. (Also, note that the likely reason for this requirement is
that filing as Head of Household status would give the qualifying surviving
spouse taxpayer a higher tax liability than the Qualifying Widow(er) status,
which would be less advantageous.)
Choice "c" is incorrect. Even though Parker would qualify as single, filing
single would give Parker a higher tax liability than the qualifying widow(er)
status and therefore is not most advantageous.
Choice "d" is incorrect. Parker would not qualify to file married filing
separately.
