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smoke945
New Member

This year I have UK inheritance. Which TT should I be getting?

 
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Accepted Solutions
DS30
New Member

This year I have UK inheritance. Which TT should I be getting?

It depends.

You can start with the TurboTax free version and if you need to upgrade, you will be prompted by TurboTax (all you information will transfer if you upgrade to a new version).

Concerning your UK inheritance, you will not need to report this UK inheritance on your US income tax return. Inherited money is not considered taxable income and is not reported on your tax return or to the IRS

Additionally, you may have several other filing requirements related to this UK Inheritance.

  • Form 8938 - Statement of Specified Foreign Financial Assets may need to be attached to your US income tax return (depending on your filing status). This form is available with TurboTax Deluxe or higher.
  • Form 3520 - If you receive a gift or inheritance from a foreign person (nonresident alien) or from a foreign estate and the total amount during the year exceeds $100,000, you are required to report the gift on Form 3520. (This form is not supported in TurboTax). Please refer to this IRS link for more information on Form 3520

  • Please note that you may need to file an FBAR if the money was held in a foreign bank account under your name or if you had signature authority over a foreign account.
    If you have foreign bank accounts, you may be required to file a Report of Foreign Bank and Financial Accounts (FBAR) if are a US citizen or resident and:
  1. you had a financial interest in or signature authority over at least one financial account located outside of the United States; and
  2. the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
    To be directed to the US Treasury Government Website to prepare a Report of Foreign Bank and Financial Accounts, click
    FBAR (TurboTax does not support this form). 

Here is a link to the IRS related to both the FBAR filing and the Form 8938 filing: IRS - Comparison of Form 8938 and FBAR Requirements


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1 Reply
DS30
New Member

This year I have UK inheritance. Which TT should I be getting?

It depends.

You can start with the TurboTax free version and if you need to upgrade, you will be prompted by TurboTax (all you information will transfer if you upgrade to a new version).

Concerning your UK inheritance, you will not need to report this UK inheritance on your US income tax return. Inherited money is not considered taxable income and is not reported on your tax return or to the IRS

Additionally, you may have several other filing requirements related to this UK Inheritance.

  • Form 8938 - Statement of Specified Foreign Financial Assets may need to be attached to your US income tax return (depending on your filing status). This form is available with TurboTax Deluxe or higher.
  • Form 3520 - If you receive a gift or inheritance from a foreign person (nonresident alien) or from a foreign estate and the total amount during the year exceeds $100,000, you are required to report the gift on Form 3520. (This form is not supported in TurboTax). Please refer to this IRS link for more information on Form 3520

  • Please note that you may need to file an FBAR if the money was held in a foreign bank account under your name or if you had signature authority over a foreign account.
    If you have foreign bank accounts, you may be required to file a Report of Foreign Bank and Financial Accounts (FBAR) if are a US citizen or resident and:
  1. you had a financial interest in or signature authority over at least one financial account located outside of the United States; and
  2. the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
    To be directed to the US Treasury Government Website to prepare a Report of Foreign Bank and Financial Accounts, click
    FBAR (TurboTax does not support this form). 

Here is a link to the IRS related to both the FBAR filing and the Form 8938 filing: IRS - Comparison of Form 8938 and FBAR Requirements


View solution in original post

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