greencat
New Member

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Hi,

my mom passed away and I've received a  CALSTRs1099-R identifying the amount and noting the federal taxes were withheld.  Like you I had thought inheritances to be tax free.  On the California State Teachers Retirement system, I found a FAQ which clarified that the death benefit is taxable income.  The annuity which was transferred to me  is taxable income and they sent me a 1099-R also.