Are funeral cost tax deductible? Created: September 17, 2015 / Author: Tax Questions Question: Are funeral costs tax deductible? Answer: No, funeral costs and burial costs are NOT tax-deductible on your income tax return. It is only deductible if you paid for the funeral out of the funds of an estate. Tagged:Can I deduct funeral cost on my tax return?Funeral and Income TaxFuneral and Income Tax DeductionFuneral tax deductible?Is Funeral cost tax deductible?