Q. Many AT&T retirees, including myself, have been deprived of their retirement benefits, some dating back to Ma Bell’s time. Among the benefits lost starting this year is the life insurance policy sponsored by the company in my name. Am I able to claim a tax deduction for the lost death benefit which had been an important part of my retirement planning?
A. We are happy to hear that you are planning your taxes in advance.
Since the tax law changed a few years ago, you are right: there is less to deduct.
This includes property tax deductions, which were eliminated when SALT – the state and local tax deduction – was repealed.
Unfortunately, losing that life insurance policy won’t help you with your taxes either.
“The answer is no. The Internal Revenue Code does not allow a deduction for lost death benefit,” said Martin Hauptman, partner of the Trusts & Estates and Taxation practice groups and chair of the ERISA and Benefits practice at Mandelbaum Salsburg in Roseland.
Sorry to share the bad news.
Email your questions to [email protected].
Karin Price Mueller writes on Bamboo column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com‘s weekly electronic newsletter.