PA Inheritance Tax Return Schedule H Instructions

Schedule H is where the personal representative claims deductions for funeral expenses, estate administration costs, professional fees, and the family exemption on Pennsylvania’s inheritance tax return. The official form number is REV-1511, and the total from it flows to the deductions section of the REV-1500 summary page.¹ Every dollar you list correctly reduces the taxable estate, and at rates that reach 15 percent for transfers to non-family heirs, the arithmetic adds up quickly.² These instructions walk through what belongs on Schedule H, how to fill it in, and how it fits into the rest of the return.

What Belongs on Schedule H and What Does Not

Schedule H has two broad categories: funeral expenses and administrative costs. Within administrative costs, the form has separate lines for personal representative commissions, attorney fees, the family exemption, probate fees, accountant fees, and tax return preparer fees.¹

One boundary worth naming up front: the decedent’s own debts do not go on Schedule H. Mortgages, credit card balances, medical bills, and similar liabilities are deductible under 72 P.S. § 9129, but they belong on Schedule I.³ Mixing the two schedules together is a common error that can slow the Department’s review.

Funeral and Burial Expenses You Can Deduct

Under 72 P.S. § 9127, the estate can deduct reasonable and customary funeral expenses. That includes:

The funeral service and preparation of the body
A burial lot or other resting place
A casket or urn
A monument, gravestone, or marker (deducted separately)
Funds placed in trust for ongoing care and preservation of the burial lot
A reasonable amount for religious services performed in connection with the death, if the decedent left a bequest for them
Funds paid after death under a prepaid burial contract

The phrase “reasonable and customary” runs through the statute.⁴ The Department of Revenue can pare down amounts it considers disproportionate, so keep itemized receipts for every funeral-related cost.

Administrative Costs and Professional Fees

The statute permits “all reasonable expenses of administration” as deductions.⁴ On Schedule H, that breaks down into distinct line items.

Personal representative commissions are deductible. Pennsylvania has no fixed statutory fee schedule; the Department of Revenue’s position is that the compensation must be reasonable given the number and types of assets, the complexity of the issues, and the amount of work involved.⁵

Attorney fees for probate, title transfers, tax filings, and dispute resolution are deductible. If the decedent’s will left a bequest to the attorney in lieu of fees, that bequest is deductible up to the amount that would have been reasonable compensation for the services actually performed.⁴

Probate fees paid to the Register of Wills, charges for certified copies of the death certificate, and similar court costs go on their own line. Accountant and tax preparer fees for the inheritance tax return, the decedent’s final income tax return, and any estate income tax returns are deductible. So are appraisal fees for real estate, business interests, or personal property that needed professional valuation.

Reasonableness is the common thread. If a fee looks inflated to the reviewer, the deduction can be reduced. Written fee agreements and detailed invoices protect the estate.

The $3,500 Family Exemption

Pennsylvania law entitles certain members of the decedent’s household to claim a family exemption of up to $3,500 in estate property, and that exemption is deductible on Schedule H.⁶⁴ The surviving spouse or other qualifying household member can retain real or personal property that the personal representative has not already sold, up to that $3,500 in value. Property the decedent specifically left to someone else in the will can only be claimed if no other assets are available. The amount is modest, but leaving it off the schedule means paying inheritance tax on money the family was entitled to keep tax-free.

Filling In the Form

Gather every receipt, invoice, and fee agreement tied to the funeral and to estate administration before you start. For each item, you need the name and address of the person or business paid, a description of the service, and the exact dollar amount.

Enter funeral expenses first. Then move through the administrative cost lines: commissions, attorney fees, family exemption, probate fees, accountant fees, tax preparer fees. Each category has its own line, and each entry should stand on its own with supporting paperwork behind it. Total the amounts at the bottom of Schedule H and carry that figure to the deductions line on the REV-1500 summary page.⁷

Check the arithmetic. Understating the total means overpaying the tax; overstating it invites closer scrutiny. Keep the original receipts, canceled checks, and signed fee agreements organized in a file after you submit, because the Department can ask for verification during its review. Both REV-1500 and REV-1511 are available on the Pennsylvania Department of Revenue website.

Deadlines and the 5 Percent Early Payment Discount

Pennsylvania inheritance tax becomes due at the decedent’s death and turns delinquent nine months later.² The completed REV-1500, with Schedule H and all other schedules attached, is filed in duplicate with the Register of Wills in the county where the decedent lived.⁷ Miss the deadline and interest starts accruing from nine months and one day after death, plus a possible penalty of 25 percent of the tax due or $1,000, whichever is less. Extensions to file are available, but interest still runs on unpaid tax after the nine-month mark.

There is also a reward for paying early. Pennsylvania grants a 5 percent discount on inheritance tax paid within three months of the decedent’s death.² The discount applies to the amount actually paid within the three-month window, so partial early payments still qualify on the portion paid.⁸ Because the Schedule H deductions determine the taxable estate, and the taxable estate determines what is owed, completing Schedule H quickly is often the bottleneck. When the exact figure is not ready in three months, some estates make an estimated payment to capture the discount and reconcile later on the final return.

If the Department Adjusts Your Deductions

Once the Register of Wills receives the return, the paperwork is forwarded to the Department of Revenue. The Department reviews the asset valuations, the Schedule H deductions, and the other reported figures, then issues a notice with its own valuation, the deductions it will allow, and the tax it considers due.⁷

If a deduction is disallowed or a value adjusted, you have 60 days from the date you receive the notice to object. Options include filing a written protest with the Department’s Board of Appeals, filing an appeal online, electing to have the matter resolved at the audit of the personal representative’s account, or appealing directly to the Court of Common Pleas. A copy of the objection must also be sent to the Department’s Office of Chief Counsel. Well-organized documentation for every Schedule H line is what makes that objection winnable.

1
Pennsylvania Department of Revenue. Schedule H – Funeral Expenses and Administrative Costs (REV-1511)
2
Pennsylvania Department of Revenue. Inheritance Tax
3
New York Codes, Rules and Regulations. Pennsylvania Code 72 PS 9129 – Liabilities
4
New York Codes, Rules and Regulations. Pennsylvania Code 72 PS 9127 – Expenses
5
Pennsylvania Department of Revenue. Executors Fees as Compensation and Deduction
6
Pennsylvania General Assembly. Pennsylvania Code 20 PaCS 3121 – Family Exemption
7
Pennsylvania Department of Revenue. REV-1500 Pennsylvania Inheritance Tax Return – Resident Decedent
8
Pennsylvania Department of Revenue. How Do I Qualify for the 5 Percent Discount for Inheritance Tax