Inherited cash account via POD

[TaxQuestions60]

I was named POD on a savings account of my Mother's who passed away this year.  DO I have to claim this as income on my taxes? Thank you.

[EleanoreS]

Good day TaxQuestions 60,

I am sorry you have experienced the loss of your mother.

POD means Payable On Death.  The account will pass to you upon the death of the owner; in this case your mother.  The principal of the account is now subject to income tax.  You would only be responsible for tax on interest earned after your mother's date of death.

Thank you for reaching out to the TurboTax Community.  

[vspIntTaxid]

Q:  

"...principal of the account is   now  subject..."

or

"...principal of the account is    not   subject..." ?

-Big difference!

[DianeW777]

It depends. If the original account owner is still alive, all income goes on their personal tax return. The person named as the one who receives ownership of the account as 'payable on death' or POD will not report income until the original owner of the account has passed away. It doesn't belong to anyone accept the original owner while that person is still living.

@vspIntTaxid