JansenTTax
Returning Member

Get your taxes done using TurboTax

An inheritance is not taxable income to the recipient of the bequest. In some states, an inheritance is taxed to the estate itself. One the inheritance is invested at a bank or brokerage account, any earnings - interest, dividends, etc. - are taxable just like any other interest or dividends. Just enter the interest in a separate screen, using the name and Fed EIN of the payer of the interest. You may have gotten a 1099-INT if the amount of the interest income is greater than the threshold for filing a 1099.  (The whole amount of interest income received in 2022 is taxable even if no 1099-INT was received.)