I received an inheritance this year (2024) and just received a K1 for tax year 2023. (The taxable income portion that I need to claim for last year 2023). This K1 amounts to over 50% of my total inheritance. This seems very high to me, but my question is: From a quick run through of filing my taxes with the addition of this form, I will owe over $40,000 between federal and state income taxes. Obviously I have no problem with paying my taxes, although I find it hard to believe that 50% of my inheritance was money earned the year after the death of my family member, but will I have to pay a penalty to both the IRS and my State? It doesn't seem fair to be penalized over something I had no control over and had no idea this would be taxable. Again, I only got the inheritance this year right before April 15th and understood that the amount is well under what is taxable inheritance tax. Quick note: I put in for an extension on April 15th, and at that point in time, I paid what I would have owed without this K1. So this $40,000 is only taxes on this K1 income.
