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

The IRS requires final individual income tax returns to be filed for people who die during the tax year, NewsNation reports. The return must include all income earned up to the date of death, as well as any credits and deductions to which the individual is entitled.

If there is no surviving spouse filing a joint return, the refund may be issued to the court-appointed personal representative of the decedent’s estate or other legally designated representative.

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“The filing requirements applicable to the individual will determine whether the personal representative must prepare the final individual income tax return for the decedent,” the IRS said.

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

The IRS advises: “On the final tax return, the surviving spouse or representative should indicate that the person is deceased.”

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The tax guide cited by TurboTax says funeral expenses are not deductible on an individual income tax return because the IRS does not classify them as medical expenses.

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

However, if the funeral expenses were paid out of the deceased’s estate, they may be deducted if the estate itself is taxable.