We have looked the information up on the IRS website and also H&R block but not too clear on this. It talks about 'gifts received' but nothing about cash money...Do you have to claim money you received as inheritance? say to the tune of $40,000, or is it considered a gift and not taxable? Thanks for your help!
2007-01-02 01:09:03 · 8 answers · asked by Gaby A 4 in Business & Finance ➔ Taxes ➔ United States
I did noy inherit the money, someone else did but I was fascinated by the fact that he could not find clear information...the money was from several different sources: the sale of the deceased condo and miscellaneous money from savings accounts.....
2007-01-02 14:39:28 · update #1
The grantee (receiver) generally does not pay income or estate taxes on his/her "inheritance". If the money transfers over from a tax deferred account then you might have to pay the unpaid income tax on that.
There is plenty of information on this topic...you are just looking in the wrong place....lookup "estate taxes" lol.
2007-01-03 03:08:54 · answer #1 · answered by woodluvto 2 · 0⤊ 0⤋
Was this inheritance outside of a retirement account or other tax-deferred account? If so, there is no income tax on this money.
Was this inheritance part of a traditional IRA or pre-tax employer plan? Did you inherit tax-deferred bonds? Then there will be income tax due on this inheritance. If this is the case you should study your options for receiving this money so taxes are minimized.
For planning purposes, be aware that any earnings on this money after the date of inheritance are taxable.
Inheritances are not gifts. Gifts are made during the donor's lifetime.
2007-01-02 01:42:22 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
I filed 1/25/2013 and was accepted 1/27/2013, with education credits and It says on the WMR site that I have a direct deposit date of 2/26/2013. I hope this helps. I think you should get your date kbefore March 1st.
2016-05-23 06:01:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No, an inheritance is not considered taxable income.
2007-01-02 01:18:44 · answer #4 · answered by Anonymous · 4⤊ 0⤋
If this is life insurance proceeds (death benefit from a life insurance policy), it is tax free if the policy was an owned by an individual.
Consult an accountant.
2007-01-02 01:25:20 · answer #5 · answered by insuranceguytx 5 · 0⤊ 1⤋
No, you do NOT! If any tax is due it is paid by the estate. There are no taxes due from the beneficiaries.
2007-01-02 01:20:44 · answer #6 · answered by Bostonian In MO 7 · 1⤊ 0⤋
All income must be delcared.
If unsure, see your accountant but it's better to be safe and sleep at night then worry that someone is chasing you.
2007-01-02 01:11:29 · answer #7 · answered by Anonymous · 0⤊ 3⤋
Yes, you do have to claim it.
2007-01-02 01:11:14 · answer #8 · answered by Anonymous · 0⤊ 3⤋