I received a $19,000 payment from a will. Do I owe taxes on that amount?

[MaryK1 · Accepted solution]

In most cases, property you receive as a gift, bequest, or inheritance isn't included in your income for the federal return.  Please be sure to check your state for specific requirements though, because they are taxable in some states.

However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income is also taxable to you. If the gift, bequest, or inheritance is the income from the property, that income is taxable to you.

[roxdough]

Texas doesn't collect state income tax and this was not property, so I think we're good.  Many thanks!