Can Funeral Expenses Be Deducted From My Taxes

Funerals are a significant milestone in life. They allow you to mourn great loss with your community, celebrate the life of your loved one, and give them a proper goodbye. Funerals—as sad as they may be—are sacred affairs that help us grieve our loved ones.

But that doesn’t mean they don’t come with challenges. The associated expenses are among the most prominent challenges funerals present for family members and close friends. As a result, understanding whether funeral expenses are tax deductible is often a concern for friends and family members of the deceased.

We’re here to give you the answers you’re looking for. Moreover, we’re here to provide some advice on how you can lighten the load that funeral expenses bring to the table.

Can Funeral Expenses Be Deducted From My Taxes?

The short answer to this question is that it depends. IRS regulations state that most individuals will not be eligible to deduct the expenses of a loved one’s funeral from their federal income tax.

In other words, if you are an individual taxpayer looking to have funeral expenses deducted from your taxes, you likely won’t be able to. But it’s not all bad news. There are certain cases where deducting funeral expenses from taxes could be possible, such as:

• Deductions as part of an estate
• Report expenses through a 706 form 
• Calculating and accounting for reimbursed expenses

In each scenario, you’d need to apply as part of your loved one’s estate rather than as an individual taxpayer. Be mindful that this is general information that may not apply to your individual circumstances.

If you’d like to know more about how your estate would be able to qualify for a tax deduction of this nature, speak to a financial professional about your options.

How Can I Honor My Loved One and Avoid Financial Detriment?

Funeral expenses typically won’t qualify for a tax deduction. But that doesn’t mean there aren’t other ways to ensure you’re giving your loved one the ceremony they deserve without spending a fortune.

If you find yourself in a situation that requires a bit of penny-pinching, we highly recommend considering a few of the following options:

• Consider cremation over burial
• Compare funeral home prices 
• Choose simplicity over extravagance
• Ask about funeral service bundles 

You may also look into financial assistance programs. Most states will only afford this financial assistance in certain circumstances. But it’s worth looking into all the same.

Many funeral homes also offer monthly payment plans. That is also something worth looking into. You can budget and pay off your funeral expenses without the bottom line becoming overwhelming or difficult to pay off.

Final Thoughts

In short, understanding the best way to finance your loved one’s funeral is an essential part of the grieving process. As an extension of that, knowing whether or not a funeral could be eligible for a tax deduction can help you plan the perfect ceremony for your loved one.

Hopefully, we could provide valuable information on the topic through this brief guide. If you’re looking for help with funeral arrangements or memorial items, Honor You has everything you need.

Browse our premium products and collections of custom prayer cards for funerals. We’ll ensure even the tiniest details are accounted for so that you can plan the perfect ceremony for your loved one.