Does money received from a maturing CD from my father qualify as Inheritance? What is the definition of an "Inheritance"?

[userrcc1266]

I received $69k from a Maturing CD in January, 2021.  I need to know how to report it, if at all, on my taxes.

[Bsch4477]

If you received it because he left it to you in his will or part of probate it’s an inheritance. An inheritance is not reported or taxed. 

[ColeenD3]

An inheritance is a property received from a decedent. If the property is received before a donor dies, it is a gift.

If you received cash, then it is not taxable. The rule is, if it had been taxable in the hands of the decedent, then it is taxable to you. If you inherited the CD and then cashed it out, it is taxable, the same way it would have been taxable to the decedent.

Please see this LINK for more information.

[Critter-3]

You inherited the CD which is a non taxable event  BUT then it was cashed in so only  the INTEREST that was earned and paid out is taxable to you  just like it would have been taxable to the decedent.  

[carriep1978]

Good evening, 

I have a similar question. When my mom passed we were listed as beneficiaries on her CD, the CDs were cashed out. We all received a cash pay out. How do I report that on my taxes? I only have a check stub showing the amount I received. I do not know about any interest or if it was a matured. 

[DavidD66]

@carriep1978 An inheritance is assets one might receive from someone when they pass away. It can include such things as:

• Cash

• investment assets such as stocks or bonds

• Real property, including land and real estate 

• items such as jewelry, furniture, collectibles, and family heirlooms

Inheritances are not considered income for federal tax purposes, whether you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source.

So, unless there was additional interest earned after your mother passed away, that was distributed to you, you don't need to do anything tax wise. 

[Herman71]

So my mother passed away in October, 2022. She had CD's that were designated as Paid on Death and I cashed in the CD's in December, 2022. It appears that the interest that accrued from October to December becomes taxable. So I assume this taxable interest is reportable in the 2022 tax year; is this correct? What Federal tax form do I use to report this interest? Thank you

[Critter-3]

Enter interest income in the Search box locate in the upper right of the program screen. Click on Jump to interest income

On the screen Did you receive any interest income? Click on Yes

On the next screen click on Continue

On the screen Let's import your tax info Click on Change how I enter my form

On the screen How do you want to add your 1099‑INT? Click on Type it in myself