BIR Ruling

April 17, 1967 Mr. P. C. Dueas P. O. Box 2034 Manila S i r : This refers to your letter dated March 10, 1967, stating the following: "Husband and wife living together with one dependent child aged 23 years, file an income tax return for year 1965. Both have income separately and they filed a combined return. cdpr "The husband died in October 1966, with income up to the time of his death. The widow will file now a return of her own for year 1966 with combined income of deceased husband and her own. "QUESTION" "As head of family or as single. As head of family, she has no dependent (her child having passed the age limit); can she do this." In reply thereto, I have the honor to inform you as follows: In the case of an individual who dies during the taxable year, the personal exemption and the credit for dependents shall be determined by his status at the time of his death, and the amount of personal and additional exemptions shall be apportioned in accordance with the number of months before and after such change. For the purpose of such apportionment a fractional part of a month shall be disregarded, unless it amounts to more than one half months, in which case it shall be considered as a month. (Section 23(d) of the Tax Code, in relation to Section 13 of Revenue Regulations No, 2). Accordingly, the surviving wife adverted to in your query should file a joint income tax return and declare therein her income together with that of her deceased husband for the period covering January 1 to October 1966. They are not entitled to the additional exemption of P1,000 since their dependent child is already over twenty three (23) years of age. The amount of personal exemption, however, shall be apportioned as follows: prcd No. of months X Personal exemption 12 or 10 X P3000 - P2500 12 and in such case full credits shall be allowed to the surviving spouse, if any, according to his or her status at the close of the taxable year. (B.I.R. Ruling dated May 21, 1956; B.I.R. Ruling No. 65-011 dated April 12, 1965; Mertens, Law on Federal Income Taxation, 32.12). Moreover, the surviving wife should file her own income tax return covering the period from November 1 to December 31, 1966 and as a widow without any dependents, she is entitled to a personal exemption of P1,800 only pursuant to Section 23(b) of the Tax Code. cdt Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue