Inheritance

Forum|Forum|4 years ago
April 6, 2022
3 replies
46 views

My father-in-law died in 2020. In 2021 we received a final cash inheritance which came from his IRA. This was divided up 4 ways each equating to $50,000. My brother-in-law is the executor of the estate and was told we do not need to claim this anywhere on taxes. We already filed our 2021 and now we received a 1041 Schedule K-1 form from him. Are we supposed to claim this amount of inheritance?? Are taxes owed?? Very confused. Any suggestions would be helpful. I live in Michigan

Best answer by Anonymous_

Are there any figures in Part III of the K-1?

You should contact your brother-in-law and inquire as to who prepared the 1041.

Typically, an inheritance is not taxable, but inheriting a retirement account is an exception.

Anonymous_Answer

Level 15

Are there any figures in Part III of the K-1?

You should contact your brother-in-law and inquire as to who prepared the 1041.

Typically, an inheritance is not taxable, but inheriting a retirement account is an exception.

diamondcut0402Author

Level 2

There are figures. He sent a picture of the form via text and is mailing out to us. He's stating that there is around $6000 we have to claim. He said his accountant has done a 180 on him. Not sure what that means. All I know is we were told originally nothing had to be claimed. And that the executor (brother-in-law) was withholding an amount out to pay any taxes that were owed.

MinhT1

Alumni - Intuit

Inheritance is not taxable and not reported on your return.

However, distributions from the inherited IRA are taxable.

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