Can You Claim a Funeral or Burial as a Tax Deduction?

Funeral Expenses: an Additional Burden

Losing a loved one is an emotionally devastating experience, and amidst the grief and sorrow, practical matters such as funeral expenses can add an additional burden on those left behind. Funeral costs can place a significant financial strain on families and individuals already grappling with the emotional toll of bereavement. From the cost of burial or cremation services to expenses associated with memorial ceremonies, flowers, and other necessary arrangements, the financial obligations surrounding funerals can quickly escalate. To deal with these expenses, a lot of people ponder on whether funeral costs are tax-deductible. Let’s try and look at how and when funeral expenses can be claimed as a tax deduction.

Funeral Expenses as Tax Deductions

Unfortunately, individual taxpayers are not eligible to claim tax deductions on funeral costs. However, certain estates, if they are worth $11.58 million or more, are eligible to claim tax deductions on federal taxes if the funeral costs were met by them. The deductions can be claimed by filing returns using the IRS (Internal Revenue Service) Form 706. In case estates want to claim tax deductions on state taxes, they need to be of a certain gross value (which is different for different states). 

Tax-deductible Funeral Expenses

Funeral expenses include a number of things that can range from casket prices to travel costs of invitees. Some expenses are eligible for tax deductions while others are not.

Here are the funeral expenses that are tax-deductible:

• Embalming
• Cremation
• Funeral home costs (facility costs, certification fees and all other fees)
• Costs associated with planning a funeral ceremony, including floral and catering expenses
• Transportation expenses, including hearse and limousine services, for the deceased and their close relatives
• Fees to religious leaders or organizations like rabbis and charges
• Burial plot
• Green burial (where the body is not embalmed and is placed in a biodegradable casket)
• Cost of making a tombstone or gravestone

Some expenses that are not eligible for tax deductions are:

• Travel expenses for guests invited for the funeral
• Any cost paid by a life insurance policy

How to Claim Tax Deductions for Funeral Costs 

One can submit Schedule J on IRS Form 706 to claim tax deductions. However, it is advisable to consult a tax expert before filing an IRS form. To claim a deduction for funeral spendings, follow these steps:

1. Find Schedule J.
2. On line 1 of Section A, enter the expenses of your itemized funerals. These expenses are covered in the section of this guide titled "Which Funeral Expenses Are Tax Deductible?".
3. Write your total funeral expenses. 
4. Now add the funeral expenses to other tax-deductible expenses of your estate and file your return.

Planning Ahead: Reducing Funeral Costs Through Preplanning

When it comes to funeral arrangements, the burden of grief of losing a loved one is often accompanied by the financial burden of funeral expenses. However, by taking proactive steps and engaging in proper funeral pre-planning, you can significantly reduce the costs associated with your end-of-life services. Funeral pre-planning offers an opportunity to make decisions in advance, explore cost-saving options, and ensure that you make financially wise decisions. Not to mention, one of the most significant benefits of funeral pre-planning is the relief it provides to loved ones during a time of grief. Hence, by taking the time to plan ahead, you can find comfort in knowing you have made thoughtful decisions that allow your family to focus on healing and supporting each other.

You can begin funeral planning years in advance. Titan Casket brings you the opportunity to pre-order a casket of your choice and add personalized touches to it. You can pay for the casket upfront or in easy installments. Once you make the payment, we will send you a pre-need agreement that you need to e-sign in order to finalize your order.