Can you claim a deceased person’s tax refund? What the IRS says

The IRS mandates a final tax return for the deceased, detailing income up to death.

Handling taxes after the death of a loved one can be complicated, especially when a refund may still be owed. According to the Internal Revenue Service (IRS), certain individuals may claim a deceased taxpayer’s refund, but specific rules determine who is eligible and how the final tax return must be filed.

If the deceased person is owed a refund after the final tax return is filed, the IRS says the payment typically goes to a surviving spouse who files a joint return. (Getty Images via AFP)

As reported by NewsNation, the IRS requires a final individual income tax return to be filed for someone who died during the tax year. The return must include all income earned up to the date of death, along with any credits and deductions the individual was entitled to claim.

Who can receive the refund?

If the deceased person is owed a refund after the final tax return is filed, the IRS says the payment typically goes to a surviving spouse who files a joint return.

In cases where there is no surviving spouse filing jointly, the refund may be issued to the court-appointed personal representative of the deceased person’s estate or another legally designated representative.

“The filing requirements that apply to individuals will determine if the personal representative must prepare a final individual income tax return for the decedent,” the IRS states.

The agency also notes that the accounting method used by the deceased, such as cash or accrual accounting, helps determine which income and deductions must be included on the final return.

Do you need to submit a death certificate?

According to the IRS, a copy of the death certificate generally does not need to be sent along with the return. However, the filing should clearly indicate that the taxpayer has died.

“On the final tax return, the surviving spouse or representative should note that the person has died,” the IRS advises.

Are funeral expenses tax deductible?

Another question families frequently ask is whether funeral costs can be claimed as tax deductions.

Tax guidance cited by TurboTax says funeral expenses cannot be deducted on a personal income tax return because the IRS does not classify them as medical expenses.

“While the IRS allows deductions for medical expenses, funeral costs are not included,” TurboTax explains, noting that qualified medical expenses must be used to prevent or treat a medical illness or condition.

However, funeral expenses may be deductible if they are paid from the deceased person’s estate and the estate itself is subject to taxation.