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New Member
posted May 18, 2020 11:02:54 PM

I got over six thousand dollars from my mother's Van guard account after she passed. How do I enter it and where?

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1 Best answer
Expert Alumni
May 19, 2020 5:50:01 AM

It depends on the nature of the income from the Vanguard account.  If the money was held in the account in the form of cash and that is what you received, then you do not report it on your tax return.  Cash inheritances are not taxable as income to you.

 

If the money was in a retirement account (such as an IRA), then you will receive a Form 1099-R to report the distribution on your tax return.  You will enter the information from the Form 1099-R to determine the amount that is taxable.

 

If the money was being held in stocks that were sold and then the funds were distributed to you, then you should receive a Form 1099-B to report the stock sales on your return.

 

 

@farrell3963

 

 

2 Replies
Expert Alumni
May 19, 2020 5:50:01 AM

It depends on the nature of the income from the Vanguard account.  If the money was held in the account in the form of cash and that is what you received, then you do not report it on your tax return.  Cash inheritances are not taxable as income to you.

 

If the money was in a retirement account (such as an IRA), then you will receive a Form 1099-R to report the distribution on your tax return.  You will enter the information from the Form 1099-R to determine the amount that is taxable.

 

If the money was being held in stocks that were sold and then the funds were distributed to you, then you should receive a Form 1099-B to report the stock sales on your return.

 

 

@farrell3963

 

 

Level 15
May 19, 2020 7:19:17 PM

Basically, an inheritance is not taxable or reportable on any tax return. Yes, there are exceptions such as the inheritance of a tax-deferred retirement account. But while the inheritance inself may not be taxable or reportable, any accumulated earnings on that money that accumulated after the passing of the deceased, is taxable income to the beneficiary recipient.  If this is your case, then you will receive some kind of tax reporting document that you would be required to report on your tax return. If you received no such document, then you have nothing to report. However, if you are not sure then you need to contact the administrator of the account or funds and ask.