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posted Mar 25, 2024 10:05:51 AM

I have interest income from inherited US Savings Bonds and a 1099-B form showing income from inherited stocks. Where do I indicate that these two incomes were inherited?

The stocks were sold and I received a check from the sale.

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3 Replies
Expert Alumni
Mar 25, 2024 10:16:17 AM

There's no need to report that the income is from inherited property.

 

You just report the interest income and the form 1099-B on your tax refund.

 

As the stock is inherited, the cost basis should be stepped up to the value on the date of death of the previous owner.

 

See this IRS document.

Level 15
Mar 25, 2024 10:23:26 AM

It shouldn't matter for the Savings Bonds but for 1099B sales you want to enter inherited and get the step up in cost  to market value.  There is a question on the sale details screen How did you receive this investment.  One of the choices is I inherited it.   That will make the sale be Long Term.  

Level 15
Mar 25, 2024 10:24:49 AM

Oh for the Saving Bond interest.  Did you get a 1099INT with it in box 3?  If not that's where it goes.  When you enter the 1099-INT you need to enter the interest in Box 3 then it will be automatically excluded from the state return.


To get to box 3. Under the Received from box, you need to check the little box on the left for
….My form has info in more than just box 1 (this is uncommon).