No, you don't have to report the amount as income unless it was in a tax-deferred account like an IRA.
If that were the case you would receive a 1099-R letting you know how much income is taxable. A regular joint bank account is not a tax-deferred account.
You can receive up to $12.06 million in 2022, without having to pay estate tax, although some times there is an estate or trust to settle a deceased person's affairs.
The majority of inheritances are not taxed and not reported on your tax return. Here are some examples of things you don't have to report:
- Cash.
- Life insurance.
- Personal items like furniture, clothing and jewelry.
Here are some things you only report if you sell them:
- Inherited stock.
- Inherited real estate.
- Personal items like furniture, clothing and jewelry.
- Collectibles like artwork, coins or baseball cards.
- Vehicles.
Here are some things that must be reported on your tax return:
- Inherited retirement accounts (distributions are taxable when taken).
- Social Security death benefits.
- Pension death benefits.
I am very sorry for your loss. If you need additional help with this matter, please reach out to us again.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
