Money received from estate

[lynseypynsey]

I received $20,000 from my brother's estate for expenses I paid out to help my father (the executor of the estate, and payer of the money) settle the estate. Is that taxable income? Do I need to report it?

[tagteam]

You need to ask the executor of the estate this question. Generally, cash received from an estate is not taxable income unless the source is the likes of a retirement account, interest, dividends, or capital gain.

If the proceeds you received from the estate are taxable (in whole or part), you should receive a K-1 (1041) and would enter that information into your individual income tax return (1040).

I am sorry for your loss.

[dmertz]

If you simply received reimbursement from the estate for estate expenses that you initially paid, that's not reportable income.