Inheritance

Forum|Forum|4 years ago
April 6, 2022
2 replies
19 views

My father-in-law died in 2020. In 2021 we received a final cash inheritance which came from his IRA. This was divided up 4 ways each equating to $50,000. My brother-in-law is the executor of the estate and was told we do not need to claim this anywhere on taxes. We already filed our 2021 and now we received a 1041 Schedule K-1 form from him. Are we supposed to claim this amount of inheritance?? Are taxes owed?? Very confused. Any suggestions would be helpful. I live in Michigan

Best answer by Anonymous_

Are there any figures in Part III of the K-1?

You should contact your brother-in-law and inquire as to who prepared the 1041.

Typically, an inheritance is not taxable, but inheriting a retirement account is an exception.

Anonymous_Answer

Level 15

Are there any figures in Part III of the K-1?

You should contact your brother-in-law and inquire as to who prepared the 1041.

Typically, an inheritance is not taxable, but inheriting a retirement account is an exception.

diamondcut0402Author

Level 2

There are figures. He sent a picture of the form via text and is mailing out to us. He's stating that there is around $6000 we have to claim. He said his accountant has done a 180 on him. Not sure what that means. All I know is we were told originally nothing had to be claimed. And that the executor (brother-in-law) was withholding an amount out to pay any taxes that were owed.

MinhT1

Level 15

Inheritance is not taxable and not reported on your return.

However, distributions from the inherited IRA are taxable.

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