Are Funeral Expenses Tax Deductible? The Straight Answer for 2025

The Bottom Line First

After my neighbor lost her husband, she asked me something that stumps a lot of folks: "Can I write off the funeral on my taxes?" Unfortunately, the short answer is no—funeral expenses aren't tax deductible on a personal tax return. That goes for both the final return for the deceased and your own if you're the surviving spouse.

But all is not lost. There are a few key exceptions and some smarter financial moves that can offer real relief. Let's break down what's allowed, what's not, and where you might actually save.

Quick Summary:

What the IRS Actually Says About Funeral Expenses

The IRS doesn't mince words: funeral costs are personal expenses—not medical ones—and they're off-limits as tax deductions. This includes:

• Funeral home fees
• Cremation or burial costs
• Plot or cemetery fees
• Casket or urn expenses
• Headstone or grave marker
• Flowers and service arrangements
• Reception or wake expenses
• Transporting the body

Some people try to argue these fall under medical costs because they follow an illness. But the IRS isn't buying that—they're clear that these are personal expenses, not treatments.

The One Exception: Wealthy Estates

There is one (very narrow) path to deducting funeral expenses: if the deceased's estate is valued over $13.99 million in 2025.

In that case, the estate must file Form 706—and then yes, funeral expenses paid from estate funds may be deductible. But we're talking ultra-wealthy estates, maybe 1 out of every 25,000 deaths. So for most families, this just won't apply.

Even in these cases, expenses must be considered "reasonable"—lavish spending will get flagged fast.

State Estate Taxes: A Few More Opportunities

Some states have lower thresholds for estate taxes, which could open the door to deductions in limited cases. Here's how it looks:

It's not common, but if you live in one of these states and the estate is nearing the threshold, it's worth looking into.

What You CAN Deduct: Medical Expenses

If you're looking for a real deduction, medical expenses tied to the final illness can qualify—as long as they exceed 7.5% of your adjusted gross income.

Here's what counts:

• Hospice or hospital bills
• Prescription meds
• Durable medical equipment
• Nursing care
• Medical travel (21 cents/mile in 2025)
• Certain insurance premiums

Heads-up: You can deduct medical costs paid within one year of death on the deceased's final return. That can help you hit the threshold and lower taxes during that year.

Memorial Donations: A Real Deduction Opportunity

Funerals? No. Charitable donations made in someone's memory? That's a yes—if done correctly:

Common Mistakes That Trigger IRS Problems

Even with the best intentions, families often make costly tax mistakes. These are the biggest ones:

Better Planning Strategies Than Tax Deductions

Rather than chasing deductions that won't work, here are smarter ways to prepare:

Final expense insurance – Tailored, tax-free life insurance to cover funeral costs without burdening loved ones.

Prepaid funeral plans – Avoid price hikes and reduce stress later—just read the fine print and portability terms.

HSAs – While they don't help with funeral costs, they're a powerful way to manage medical bills near end-of-life.

Have the conversation – Don't underestimate the power of talking to family early about your wishes and budget.

When to Get Professional Help

Many families can handle this on their own—but consider hiring a pro if:

• Your estate might hit state estate tax levels
• There were major final-year medical bills
• The deceased owned a business
• You're dealing with assets across state lines
• You're unsure about anything

The Reality Check

No one likes hearing "you can't deduct that" in the middle of a loss. It feels unfair—and maybe it is—but it's also the reality of how the tax code works.

Rather than chasing impossible deductions, your energy is better spent on options that really help: like covering medical bills or having a plan in place for end-of-life costs. That way, you're not stuck scrambling—and your family's not stuck guessing.

It's not always what people want to hear, but it's the advice that keeps families from making painful, expensive mistakes.