Tuesday, October 12, 2004
Tax notes: Tax status of the widowed
THE Tax Code defines “head of family” as an unmarried or legally separated individual who has at least one sibling, or with one or more legitimate, recognized natural or legally adopted children living with and dependent upon him or her for their chief support, where such siblings or children are not more than 21 years old, unmarried and not gainfully employed, or where they are, regardless of age, incapable of self-support because of mental or physical defect.
For tax purposes, a widower is considered head of family if he has a dependent. In such a case, he can claim personal exemption of P25,000 and P8,000 additional exemption for each of his dependents not exceeding four. (BIR Ruling DA-173-04, April 6, 2004)
If the widowed taxpayer has no dependent, however, he or she will be considered single for tax purposes and entitled to claim personal exemption of P20,000 only. (Source: Punongbayan & Araullo)
(October 12, 2004 issue)
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