1099R from inheritance is showing as income

Forum|Forum|7 years ago
June 3, 2019
1 reply
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We are entering 1099R information from inheritance and it is showing up as income for us. Most of them have had the taxes paid. Our tax due is very large. Are we doing something wrong?

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Anonymous

Generally, inherited property (including cash, stocks, and real estate) is not taxable or reportable on a personal1040 federal return.

However, any income earned from an inheritance such as interest, dividends, rent) or capital gains will be taxable on a federal return.

An inheritance will be taxable if you inherit an IRA, 401(k) or other retirement account. That would be considered "income in respect of a decedent" which is earned by a deceased person prior to death. Because it was paid after death the income is taxable to the recipient in the year paid.

i hope this information is helpful.