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New Member
posted Jun 4, 2019 10:36:31 PM

We just received 100,000 due to my mother passing. I am wondering if and where this needs to be listed on either state or federal tax sheet?

We are told this was tax free because of the way she had this set up at the banks.

Will we need to place this on the state of Wisconsin tax forms?

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1 Best answer
Level 7
Jun 4, 2019 10:36:33 PM

Generally, inherited property (including cash, stocks, and real estate) is not taxable or reportable on a personal1040 federal return.

However, any income earned from an inheritance such as interest, dividends, rent or capital gains will be taxable.

An inheritance will be taxable if you inherit an IRA, 401(k) or other retirement account and receive a distribution in which case you will receive a 1099-R form that should be entered on the 1040 return

If you received taxable income from the estate, you should have received a Schedule K-1 from the executor or administrator of the estate. If so, see the below link for instructions to enter on your return.

https://ttlc.intuit.com/questions/4099920-where-do-i-show-disbursement-from-a-will

Only a handful of states (Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania) have some kind of inheritance tax. Refer to your state's Department of Revenue to see what the requirements are for filing inheritance tax.

1 Replies
Level 7
Jun 4, 2019 10:36:33 PM

Generally, inherited property (including cash, stocks, and real estate) is not taxable or reportable on a personal1040 federal return.

However, any income earned from an inheritance such as interest, dividends, rent or capital gains will be taxable.

An inheritance will be taxable if you inherit an IRA, 401(k) or other retirement account and receive a distribution in which case you will receive a 1099-R form that should be entered on the 1040 return

If you received taxable income from the estate, you should have received a Schedule K-1 from the executor or administrator of the estate. If so, see the below link for instructions to enter on your return.

https://ttlc.intuit.com/questions/4099920-where-do-i-show-disbursement-from-a-will

Only a handful of states (Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania) have some kind of inheritance tax. Refer to your state's Department of Revenue to see what the requirements are for filing inheritance tax.