I am expecting an inheritance in December. Will the money be taxed?
2006-11-13 11:27:08 · 5 answers · asked by Staci 2 in Business & Finance ➔ Taxes ➔ United States
Talk to the trust fiduciary. Money paid from a trust is either income or corpus. Corpus isn't taxable to you, but income is. There is no way I, or anyone else on this message board could possibly know how much is from each category, but the fiduciary should know. To be safe, you could assume the whole amount is taxable and if it isn't, you'll be pleasantly surprised.
Money paid directly to you in the form of an inheritance is not taxable, but since you mentioned a trust, that trust may have had income. If you get part of that income, it is taxable to you in the year you receive it. My guess is that most of the trust is corpus especially if is a trust that was formed upon the death of the grantor (an irrevocable trust) and is only in existence for a short period of time. If the trust is to last for years and years, then there is a good chance that most of the money paid to you will be taxable since most trusts usually pay out income and keep corpus. Income is taxed at a very high rate to the trust and a comparatively lower rate to individuals.
2006-11-13 15:31:57 · answer #1 · answered by TaxMan 5 · 0⤊ 0⤋
Is Trust Fund Money Taxable
2017-01-12 15:26:50 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Workman's comp IS taxable earnings. i do no longer think that your organization company could provide you so called "unfastened funds". in case you probably did no longer have an earnings then no you does not ought to document. merely don't be shocked on the tip of the 12 months while your organization company factors a 1099 for Monies you have gained. you could fall below the minimum earnings and not owe any taxes. yet remember this The Democrats in the event that they're elected will decrease the minimum tax bracket. they additionally will do away with the new child tax credit which has given Low earnings families a number of thousand funds each 12 months. i merely won't be able to be attentive to how the undesirable with babies ought to vote for a democrat. of direction while THE TAX credit IS long previous it is going to likely be GEORGE timber FAULT.
2016-12-14 06:39:35 · answer #3 · answered by woolf 4 · 0⤊ 0⤋
An inheritance isn't taxable to the recipient, although if it's large enough, there might be estate taxes.
If it's a trust, any income from it will be taxable.
2006-11-13 13:56:52 · answer #4 · answered by Judy 7 · 1⤊ 1⤋
no
2006-11-13 13:55:55 · answer #5 · answered by tennille m 1 · 0⤊ 0⤋