It depends.
If you receive income from a 1099-DIV that is held by the estate, then you will not be taxed on this dividend distribution to you.
However, if you inherit stock that pays a dividend after you have inherited this stock, then this would be considered taxable income to you and would need to be reported on your income tax return.
If it was a partial liquidation, there is nothing to report on your tax return. You adjust the cost basis of your stock or mutual fund by the amount of the partial liquidation shown in Box 8 or Box 9, then when you eventually sell the stock you will use the lowered cost basis as the purchase price of the stock.
Click this link for more info on 1099-DIV on Inherited Stock.
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