Protect American Widows Act of 2025; PAW Act of 2025
Summary
The Protect American Widows Act of 2025 (PAW Act of 2025) aims to amend the Internal Revenue Code of 1986. It seeks to expand the surviving spouse filing status to individuals whose spouses have died within the last five taxable years, instead of the current two years. This change would allow more individuals to benefit from the tax advantages associated with the surviving spouse filing status.
Expected Effects
The primary effect of this bill would be to provide extended tax relief to individuals who have recently lost their spouse. By expanding the eligibility window for the surviving spouse filing status, more people could potentially lower their tax burden during a difficult period. This could free up financial resources for other needs.
Potential Benefits
- Reduced Tax Burden: Widows and widowers could experience a lower tax liability for a longer period.
- Financial Relief: The tax savings could provide much-needed financial support during a time of grief and adjustment.
- Simplified Finances: Maintaining the surviving spouse status can simplify tax filing compared to other statuses.
- Increased Disposable Income: Tax savings could translate to more disposable income for daily expenses or investments.
- Potential for Estate Planning Benefits: The extended period might allow for better estate planning strategies.
Most Benefited Areas:
Potential Disadvantages
- Potential for Increased Complexity: While intended to simplify, the change could introduce complexities in certain tax situations.
- Revenue Impact: The expanded eligibility could lead to a decrease in overall tax revenue for the government.
- Risk of Abuse: There is a potential, albeit small, risk of individuals misrepresenting their marital status to claim the benefit.
- Administrative Burden: The IRS may face increased administrative burden in verifying eligibility for the expanded benefit.
- Delayed Impact: The benefits are only realized when filing taxes, so the immediate impact may be limited.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble), as it aims to provide financial support to a specific vulnerable group, widows and widowers. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under Congress's power to modify the tax code.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).