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Level 2
posted Jun 1, 2019 8:29:34 AM

My wife's father had a bank account for my wife. He died. The money was transferred to my wife. Does she have to report this as income? If so, how?

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1 Best answer
Level 2
Jun 1, 2019 8:29:36 AM

If your inheritance is cash, it is not taxable and is not reported on your tax returns.

For your further information, I have included the following:

If you inherit property that produces income such as interest, dividends, or rent, that income is taxable and reportable on your Federal and State returns.

If you have received stock or a house, the sale is reported and income is taxable.  If you inherited an IRA (individual retirement account) or a qualified plan such as 401(k), the amount is taxable according to the 1099-R you will receive.

1 Replies
Level 2
Jun 1, 2019 8:29:36 AM

If your inheritance is cash, it is not taxable and is not reported on your tax returns.

For your further information, I have included the following:

If you inherit property that produces income such as interest, dividends, or rent, that income is taxable and reportable on your Federal and State returns.

If you have received stock or a house, the sale is reported and income is taxable.  If you inherited an IRA (individual retirement account) or a qualified plan such as 401(k), the amount is taxable according to the 1099-R you will receive.