Declaring inheritance?

Forum|Forum|4 years ago
November 15, 2021
3 replies
9 views

Hi,

My mother died in 2019, and in 2020 I received an inheritance. My brother, the trustee of her accounts, indicated that we did not have to pay tax since the amount of the inheritance fell under certain limits.

However, what are those limits, and is there some form we need to file to declare the money received?

I already filed my 2020 taxes, and only included investment gains on the moneys in Schedule C. If I need to make amends, what should one do?

Thank you.

Not A Product Question

Best answer by rjs

You do not declare your inheritance. A person who receives a cash inheritance does not pay tax on it and does not report it in any way.

An estate has to pay federal estate tax if the total value of the estate is more than a certain amount. For someone who died in 2019 the limit was $11.4 million.

Some states have estate tax with lower limits. A few states have an inheritance tax that is paid by the person who receives the inheritance. If your brother worked with a tax specialist I'm sure they covered all of this. I don't think you need to ask him anything.

Critter-3

Level 15

What exactly did you inherit ? Cash, property, retirement accounts, broker accounts, etc ?

Did the estate file a final return ?

scotttigerAuthor

Level 4

I inherited cash. It was divided 3 ways between her trust account (for her three children), and my father's trust account (for all his children - she was his second wife).

I believe that my brother worked with a tax specialist to file a final return. What questions should I ask him about this?

Thank you for the quick reply.

Critter-3

Level 15

Good ... the estate return is done and you all have non taxable cash to spend as you like ... nothing to report on an income tax return .

rjs

Answer

Level 15

You do not declare your inheritance. A person who receives a cash inheritance does not pay tax on it and does not report it in any way.

An estate has to pay federal estate tax if the total value of the estate is more than a certain amount. For someone who died in 2019 the limit was $11.4 million.