Losing a spouse is emotionally devastating — and for many widows and widowers, it can also bring unexpected financial hardship. One key reason is the “widow’s tax penalty,” a little-known tax consequence that can increase your tax burden and reduce income after a spouse’s death. Here’s how this penalty can significantly impact your retirement finances. Must Read What is the ‘widow’s tax penalty’? The widow’s tax penalty refers to the potential increase in tax liability that occurs when a surviving spo ...