Got 15k from a ira benefit from a decease parent, it was a lump sum and already taxes what the smartest thing to do with this without hurting my taxes for the year?

[Vocker]

In AZ state

[VolvoGirl]

You will probably get a 1099R next January for it and need to report it on your tax return.  It will be taxable and add to your other income.  

You didn't actually pay the tax.   You had taxes withheld like from your paycheck. You still have to enter the whole gross amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due.  The Gross amount shows up on 1040 line 4a or 5a and the taxable amount on 4b/5b. The withholding will show up on 1040 line 25b.

[Opus 17]

I don't know what you mean by already taxed.  If you are the beneficiary, you inherited the IRA.  If you withdrew some or all of the money, you will owe income tax in the year of the withdrawal.  You might have had taxes withheld from the withdrawal, but the withdrawal still needs to be reported on your return, and you get credit for the withholding, but you may owe additional tax if the withholding was not enough.

If the IRA had no beneficiaries, then it went to your parent's estate, and was paid to the beneficiaries of the estate.  Most of the time, this is the same as I mentioned above, you get an IRA, and if you withdraw money, you owe income taxes.  Rarely, the estate will pay the income tax, and you just get money that is not reported on your tax return.  If you believe the estate paid the tax, you should confirm that with the estate administrator.  Normally, you inherited the IRA, and will get a 1099-R for the money you withdrew. 

[rjs]

It's not clear what you mean by an "IRA benefit." Did you inherit an IRA from your parent as a beneficiary, or was money taken out of the IRA and paid to you? Did you get a check for $15,000, or did you get an account of some kind?

Whatever happened, there probably isn't anything you can do at this point to change the tax consequences. You probably don't have any choices about how to handle it. I'm not sure what you mean by "hurting" your taxes. If you receive distributions from an IRA you have to pay tax on the money that you receive, but that's because you received the additional income. If you have more income you have to pay more tax. Do you consider that "hurting" your taxes?

If you inherited an IRA you will have to start taking yearly distributions (Required Minimum Distributions or RMDs) from the inherited IRA, even if you are not old enough to have to take RMDs from an IRA of your own. The RMDs are taxable income to you. In most cases you will also be required to take all of the money out of the inherited IRA, and pay tax on it, within 10 years.

[VolvoGirl]

I believe he means he got the check or deposit.  He wants to know what to invest it in so he doesn't get taxed too much in the future.  Whatever you invest in will probably generate taxable income.  Like if you put it in the bank you will get interest on it.  One thing you can do is pay down any loans or credit cards you have.  That will save you any interest charges.  So it would be like getting that interest rate on your money.  You could go to a local financial planner for how to invest it for the long term.