Do I claim income from an ongoing inheritance?

Forum|Forum|7 years ago
June 6, 2019
10 replies
23 views

Some years ago I received mineral rights in my inheritance. Up until this year the amounts received have been very small. However, this year I was paid a more substantial amount of money from the mineral rights (it is ongoing, I did not sell or change anything). Because this was originally an inheritance do I add this income to my Fed/State taxes?

TurboTax Home & Biz Windows

CaddyGrnAuthor

Level 5

Yes, I get a 1099 yearly

Lisa995

Alumni - Champ

They should be sending you a 1099 for your share of the income...have you received any tax documents for any years?

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

Lisa995

Alumni - Champ

That 1099 should be included on your tax return, yes.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

CaddyGrnAuthor

Level 5

So I am taxed on my inheritance income yearly? 😞

CaddyGrnAuthor

Level 5

Ok, thanks

Lisa995

Alumni - Champ

You're taxed on the earnings from what you inherited, yes.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

VolvoGirl

Level 15

Have you been entering it each year? If not you may need to amend prior years. You must report all your income no matter how small. Even $1 of bank interest.

CaddyGrnAuthor

Level 5

Yes, I have entered each year.... I was just hoping the new tax law changed this .. for 2018

DawnC0

Level 12

Yes, you need to report any income you receive on a 1099. Since you are using TurboTax Home and Biz, you will enter it under the Business tab, Rental Properties and Royalties, see image attached. You will be asked some questions about the royalty property and after that, TurboTax will ask you about any income received from the property and that is when you will enter the 1099-MISC.