Is Inheritance taxable? Are Gifts Taxable (to the recipient)

[AmyC]

It depends. Sale of estate can mean many things. If you inherited a house and sold it, it goes on sch D. If you sold stock you inherited, sch D. If the estate sold stuff and gave you money, the estate will give you a k-1 to put on your return, if needed.

@1Badque2

[lli212]

My father died, I am a benefic of a annuity.  this is inheritance, right?  only 30k ,  have to report to my tax return, is it?

[LeonardS]

Yes, you have to report the annuity you inherited on your tax return.  You should have received  Form 1099-R  reporting your inherited annuity. 

Here's how to enter your 1099-R in TurboTax:

1. Open (continue) your return, if you don't already have it open
2. Locate the Search bar by the magnifying glass icon. Search for 1099-R and select the Jump to link in the search results
3. Answer Yes on the Did you get a 1099-R? screen
   • If you land on the Review your 1099-R info screen instead, select Add Another 1099-R
4. Answer any questions until you get to the screen Let's import your tax info. Here you can choose how you want to enter your 1099-R:
   • If your financial institution is a TurboTax 1099 partner, you can import your form. Select your institution from the list and enter your sign-in credentials, then select Get my form to start the import process
   • If you prefer to upload your 1099-R or type in the info yourself, select Change how I enter my form. On the next screen, select your preferred entry method
5. Continue answering the questions to enter or review the info from your 1099-R

@lli212

[whyis44]

in the form of cash from a trust

[NCperson]

@whyis44 what is the question? 

[hansondm]

Inheritance was from my deceased brother-in-law and was a cash amount under $500 presumably from a taxable investment, such as a retirement plan or an IRA through the Knights of Columbus.

[DaveF1006]

Yes, this is taxable because it's an inherited asset.  Report it as other income.

1. Log into your account
2. Select Wages and income
3. Less Common income
4. Miscellaneous Income, 1099-A, 1099>start
5. Scroll to the bottom of the page to Other Reportable Income
6. Other taxable income, answer yes
7. Then give a brief description of the income and the amount listed. Call it Inherited Taxable Benefit and the amount.