My daughter is going to receive a lump sum retirement benefit from her deceased father. It’s being taxed before I get it how will it effect my income tax

[macuser_22]

It will not affect your tax at all.   Any taxable inherited income your daughter receives will have to be reported on your daughters own tax return.   Depending on the nature of the retirement income it may or may not be taxable.  If it is from a tax deferred retirement account such as a 401(k), pension or IRA then it probably will be taxable income to your daughter.

[Hal_Al]

"It’s being taxed before I get it"  probably means there will be income tax withholding.  Withholding is not the actual tax, but is a pre-payment of the estimated tax due (just likewithholding at your job).  She will need to file a tax return and may even get some of that withholding back.