![]() ![]() ![]() The following expenses qualify for a tax deduction for eligible estates, as long as they are reasonable in nature: If you are eligible to deduct funeral expenses on your estate’s tax returns, be aware that not all funeral expenses are tax-deductible. This includes payments from Social Security, Veterans Affairs, final expense insurance and other sources. If the estate was reimbursed for any funeral costs, that reimbursement must be deducted from your total tax deduction. For families that choose cremation, the average drops to $6,971. Because funerals can be a major expense for some families, Social Security and the Department of Veterans Affairs (if eligible based on military service) provide benefits to help defray the costs. According to the National Funeral Directors Association, the average cost of a funeral with a viewing and burial is $7,848. Here’s how it works.Ĭonsider working with a financial advisor as you make an estate plan or update an estate plan.įuneral costs vary from region to region and the details of the burial service. The answer depends on who is paying and what kind of estate is left behind. So, it’s no wonder that many people ask if funeral expenses tax-deductible. While these events are a good way to gather family and friends to honor the deceased, funerals can be expensive. When a loved one passes away, most families hold a funeral to mourn, remember the deceased’s life and pay last respects. ![]()
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