02 Dec My employer eliminated my life insurance. Can I deduct the loss?
Q. Many AT&T retirees including myself have been stripped of retirement benefits, some dating back to Ma Bell days. Among the lost benefits starting this year are the company-sponsored life insurance policy in my name. Am I able to take a tax deduction for the lost death benefit which had been an important part of my retirement planning?
A. We’re glad to hear you’re planning ahead for your taxes.
Since tax law changed a few years back, you’re correct: There are fewer items to deduct.
That includes property tax deductions, which were eliminated when SALT — the State and Local Tax deduction — was repealed.
Unfortunately, the loss of this life insurance policy won’t help you on your taxes, either.
“The answer is no. The Internal Revenue Code does not allow a deduction for the lost death benefit,” said Martin Hauptman, a partner in the Trusts & Estates, and Taxation practice groups and chair of the ERISA and Employee Benefits practice at Mandelbaum Salsburg in Roseland.
Sorry to share the bad news.
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This story was originally published on Dec. 2, 2021.
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