Not on your federal return. 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. Refer to your state's Department of Revenue to see what the requirements are for filing inheritance tax.
Interest or other income generated from inherited cash would be taxable. For example, if you inherited $10,000 in cash and deposited it into a bank account, generating $40 of interest this year, the $40 would be included in your income as taxable interest. @westyf
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@wolfman1 As stated above, most inherited funds are not taxable to the recipient. However, this does not apply to retirement accounts (Form 1099-R). The funds in those accounts already have received tax benefits and deductions, so when you (or your beneficiaries) withdrawal that money, the income is taxable.
Where do I enter my 1099-R?
I am sorry for both of your losses.
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