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telz
New Member

Does the money I received from my Mother's Prudential Alliance Account upon her death get taxed as income with Fed, Pennsylvania, or local?

 
2 Replies
tagteam
Level 15

Does the money I received from my Mother's Prudential Alliance Account upon her death get taxed as income with Fed, Pennsylvania, or local?

Opus 17
Level 15

Does the money I received from my Mother's Prudential Alliance Account upon her death get taxed as income with Fed, Pennsylvania, or local?

No one can tell you that without more information.

 

In general, if this was a tax-deferred account, like a traditional IRA, then you owe income tax, the same as if the owner had withdrawn the money.  The broker would send you a 1099-R at the end of the year.  

 

If the account held regular investments that were not tax-advantaged, then you inherited those investments on the date your mother died at the value on that date.  If the investments were later sold (cashed out) you might have a taxable gain or a deductible loss.  The broker would send you a 1099-B at the end of the year.

 

The death benefit on a life insurance policy is not taxable.  

 

There are some other, more complicated investments that might be partially taxable. 

 

I suggest you start by asking Prudential.  If you are a subscriber to Turbotax Live, start by asking your Live expert and they can tell you what questions you need to ask Prudential. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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