Hello,
A savings account of my spouse was escheated to Michigan because the beneficiary (not me) could not be found. I can now claim the money (large amount) for the estate. Is this money taxable?
You'll need to sign in or create an account to connect with an expert.
sorry for your loss. Interest earned prior to death would be reported on their final 1040 return. interest earned afterwards would be taxable to either the estate or heir. Principal which included any interest earned up to the date of death is not income.
If there is interest, that is taxable to you. The principal balance is not taxable. You will likely not get any tax paperwork from the state, so reporting the interest would be on the honor system.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
OliviaStanton
Level 1
khudijakhan
New Member
u0d4n7a0p
Level 3
atnowjw
Level 1
Wiz222
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.