In 2023, I received a lump sum payment in the low 5 figures, sent by the UK government. I got this payout because my late spouse never claimed their state pension (similar to social security) while they were alive, and it accrued for several years during their final stages of life.
I have documentation from the UK authorities stating clearly that this is an inherited sum, and the reasons for the inheritance. No UK tax was deducted since I am a US citizen/resident, and there is a double taxation treaty.
Question is: Should I consider this as income on my 2023 US tax return? Or should I consider it like any usual inheritance of this magnitude, which would not be taxable in the US?
Thank you
You'll need to sign in or create an account to connect with an expert.
This sounds like income in respect of a decedent which would be taxable to you as beneficiary. If it would have been taxable had it been paid to your spouse, it's likely taxable to you as beneficiary.
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.
You do not report inheritances on your tax return.
Please read this TurboTax Help article for more information.
This sounds like income in respect of a decedent which would be taxable to you as beneficiary. If it would have been taxable had it been paid to your spouse, it's likely taxable to you as beneficiary.
Thanks.
Yes, it would have been taxable if it had been paid to my spouse.
I'll just report it as income then, and sleep more soundly.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Nancol
Level 1
maraujo68
New Member
Nkm171964
Returning Member
shelleyfl59
Level 1
CalMaple
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.