My husband inherited 1/7 of an IRA. He received the check in 2023, but never cashed it until 2024. Which year do I pay taxes on it? Or do we not owe taxes. In Sept 2024 the estate house sold, so we do have inheritance from that for this year.

[Jackstar221]

Hi,

The tax year in which you receive the check from the inherited IRA is typically the year you report the income. Since your spouse received the check in 2023, it will be reported on the 2023 tax return, even if it was not cashed until 2024. The income from an inherited IRA is generally taxable ordinary income in the year received.

Regarding the sale of estate property, the proceeds from the estate house in September 2024 will be entered on your 2024 tax return.

In other words, the IRA distribution will be reported on the 2023 tax return, and the estate house sale will be reported on your 2024 tax return.

[JandKit]

Hi LillyRose,

Thank you for allowing me to add in my knowledge to others listed. You mention that the check was received in 2023 but not cashed until 2024. Typically, death benefits are recognized when received. However, If this is an IRA, your husband should have received a 1099 R which would indicate the year in which it could or would be subject to taxes. The inheritance should be taxed in 2024.

Goodluck to you in 2024

[FranklinF]

When you inherit a Traditional IRA, you are called a BENEFICIARY.

Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they CONSTRUCTIVELY RECEIVED.

Constructively received means that you had access to the funds REGARDLESS of when the check was cashed.

Regarding the Estate that was settled in 2024, the proceeds of this settlement that are taxable will be applicable to Tax Year 2024. 

Publication 590-B (2023), Distributions from Individual Retirement Arrangements (IRAs) 

** Say "Thanks" by clicking the thumb icon in a post
** Mark the post that answers your question by clicking on "Mark as Best Answer"

[LillyRose]

i don't think we received a 1099R  or it slipped by me accidentally and ended in the trash (not likely as I've been doing taxes for a long time and recognize 1099's.  What is the best way for me to get a copy?  back at the bank that distributed it or on file at the IRS.      I didn't see any of the paperwork at the time of my mother in laws death.  My husband doesn't normally pay attention to these kinds of things.  

[BettieG]

The best way to get a replacement copy of a Form 1099-R is directly from the institution that issued it.  If you can access the account online, most institutions post a copy of the 1099-R in the online account and it can then be downloaded or printed.  If you don't have online access, you can contact the institution directly and ask for a replacement copy.

You could also likely obtain the information through your IRS.gov account, if you have one.  If you don't, you can set one up at IRS.gov.

I hope this helps.