I have a question about how to enter an inheritance correctly into Turbo Tax. Also, Turbo Tax reflected that I have to complete a MT tax form as a non-resident.

[bigfish-196]

I am a Maryland resident. I received an inheritance in 2016. My Mother pasted away in 2016 and she left me and my four siblings a home in Montana which sold for $95,000.00. Divided 5 ways it was $19,000.00 each. $19,000.00 was also reflected on my 1099-S. After commissions and settlement charges each of us received $17,470.50 from the sale of the home. I enter the $19,000.00 into Turbo tax and followed the instructions. Turbo Tax also reflected that I needed to fill out a Montana State tax form (is that correct?) as a non-resident. I followed instructions and completed that form entering the $19,000.00 into the Montana source income section and I now owe Montana $936.00. (Did I do that correctly?). I also inherited approximately $6,000.00 in cash and/or property from my Mother's estate. Do I need to claim that amount as income or any other way on my Federal or Maryland and Montana State Taxes? Thank you.

[RichardK · Accepted solution]

Generally, when you inherit property (for example a house), you receive the fair market value at the date of death as the basis. Then when you sell the house there should be little gain or loss. Complete the following steps to enter the transaction in Turbotax:

·       Open your return

·       Enter sold second home in the search field, click the spyglass

·       Click Jump to sold second home

·       On the Here's the investment sale info we have page

·       Select Add More Sales

·       click through pages until you get to Choose the type of investment you sold, select Second home

·       Add the information on the pages that follow

·       On the Inheritance page, enter the fair market value at the date of death

Montana has an estate tax, but not an inheritance tax, you are required to file a Montana tax return, however if you are preparing you return correctly, you should not have a Montana income tax liability.

[lrmiller7]

I inherited royalty interests in oil and gas properties in Montana. A small payment was received by the estate in 2020, I had to hire an accountant there to file a federal return and issue a k-1 to the heirs, which includes me. I am now completing an almost blank MT nonresident return in Turboxtax and uploaded the K-1 as a PDF. I entered the amount of the income, but see nowhere to enter into TurboTax the tax withheld. The amount withheld exceeds the tax due, and I can't see how to claim a refund. Instead, Turbotax says I owe tax on the income. Where do I enter it?

[MarilynG1]

@lrmiller7 Click this link for info on how to enter State Tax paid on K-1 Royalty Income.