The IRS doesn't impose an inheritance tax.
Only a handful of states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania) have some kind of inheritance tax. Which state do you live in?
Interest from inherited cash would be taxable
To report the interest :
- Sign in to your TurboTax account and open or continue your return
- Select Federal from the menu, then Wages & Income
- Locate the section titled Investments & Savings and select Show More, then select Start or Revisit next to Interest on 1099-INT
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