Are Funeral Expenses Tax Deductible?

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Losing a loved one is hard enough — and the financial burden of a funeral makes things even more overwhelming. It’s only natural to wonder are funeral expenses tax deductible. The answer depends on who pays for them and how they’re filed. While most individuals can’t write off funeral costs on their personal taxes, there are some exceptions worth knowing.

In this guide, we’ll walk you through when funeral expenses might be tax deductible, what counts and how to potentially ease the financial impact.

Are Funeral Expenses Tax Deductible on Your Taxes?

The short answer: No, funeral expenses aren’t tax deductible on your personal income tax return.

The IRS doesn’t consider funeral or burial costs as qualified medical expenses. So if you’re paying out of pocket for a loved one’s funeral — even if you’re the spouse or next of kin — you can’t claim those costs as a deduction on your 1040.

When Can Funeral Expenses Be Deducted?

In very specific situations, funeral expenses can be tax deductible — but only through a taxable estate.

According to IRS rules, these costs must:

• Be paid out of the deceased’s estate (not by family members)
• Be itemized on IRS Form 706 (not Form 1041)
• Be claimed only if the estate is large enough to trigger the federal estate tax

In 2025, the federal estate tax applies to estates worth more than $13.99 million. If the estate’s total value is under that threshold, it likely won’t qualify.

What Funeral Expenses Can Be Deducted by an Estate?

If the estate meets the IRS threshold and files Form 706, certain costs can be deducted.

Funeral Expenses That Can Be Deducted by an Estate

Funeral Expenses That Can’t Be Deducted

How to Claim Funeral Expenses on IRS Form 706

Here’s how to properly deduct funeral expenses through a qualifying estate:

1. Confirm the estate exceeds the IRS threshold
   • For 2025, that’s $13.99 million in total gross assets.
2. Keep detailed documentation
   • Save receipts, invoices and proof that the estate (not an individual) paid the costs.
3. Complete Schedule J on IRS Form 706
   • Report funeral expenses on Line 1 of Schedule J.
   • Be sure to exclude any reimbursed amounts — for example, life insurance payouts.
4. Submit the form within nine months of the date of death
   • Extensions may be requested if needed.

Can Business Owners Deduct Funeral Costs?

In rare cases, yes. If the funeral expenses are directly tied to a business purpose — like honoring a key employee or client — and are considered “ordinary and necessary,” they might be deductible as a business expense.

Examples may include:

• Hosting a memorial service for a company founder
• Providing transportation or meals for employees attending the funeral

Be sure to consult with a tax professional before claiming this kind of deduction.

Other Ways To Offset Funeral Expenses

Even if you can’t deduct funeral costs from your taxes, several programs and resources may help cover the bill.

State Emergency Burial Assistance

Some states offer limited emergency burial funds. These programs are often income-based and may only cover basic services.

Social Security Death Benefit

Surviving spouses or children may qualify for a one-time payment of $255 from the Social Security Administration.

Veterans Affairs (VA) Benefits

Eligible veterans may receive:

• Up to $2,000 in funeral and burial reimbursement
• Free burial in a national cemetery
• Grave marker or headstone

FEMA COVID-19 Funeral Relief

If your loved one died from COVID-19, you may qualify for FEMA funeral assistance — up to $9,000 per death, available until September 30, 2025.

Life Insurance or Funeral Trusts

Many people prepay funeral costs through a trust or rely on a life insurance payout to cover expenses. These are not tax-deductible, but they can help ease financial strain.

Tips for Managing and Documenting Funeral Expenses

• Use estate funds where possible if a deduction is desired
• Keep a folder of itemized invoices and payment records
• Avoid co-mingling personal and estate expenses
• Note any reimbursements received (e.g., from insurance)

Final Take to GO: Can You Write Off Funeral Costs?

So, are funeral expenses tax deductible? For most individuals, the answer is no — but if you’re managing a large estate, there’s a chance you could claim them on the estate tax return. Even then, the estate must exceed $13.99 million to be subject to estate taxes in 2025.

If you’re looking for ways to offset funeral costs without deductions, don’t overlook Social Security benefits, VA aid or life insurance policies. Planning ahead — even with something as simple as organizing documents — can help reduce stress and financial uncertainty during a difficult time.

Information is accurate as of June 9, 2025.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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