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?
— Annoyed

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That includes property tax deductions, which were eliminated when SALT — the State and Local Tax deduction — was repealed.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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