What filing status should Claudia choose for the year of her spouse's death?

In the year of a spouse's death, the surviving spouse has the option to choose either Married Filing Jointly or Married Filing Separately for that tax year. This flexibility allows the surviving spouse to potentially take advantage of the benefits associated with filing jointly, such as a higher standard deduction and more favorable tax rates, which can lead to a lower overall tax liability.

Choosing this filing status also allows the surviving spouse to retain certain tax benefits that would not be available if they filed separately. It’s important to consider the specifics of the situation, such as income levels and potential deductions, when deciding which option is the most beneficial.

While there are other options for filing status in subsequent years, in the year of the spouse's death, the primary options remain those associated with their marital status at the time of death.