Where do i enter inheritance income?

5 replies
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We've received money (a personal check from a lawyers office), but no documentation of the transactions.

TurboTax Deluxe Online

Anonymous

Generally, inherited property (including cash, stocks, and real estate) is not taxable or reportable on a personal 1040 federal return.

However, any income earned from an inheritance such as interest, dividends, rent) or capital gains will be taxable.

An inheritance will be taxable if you inherit an IRA, 401(k) or other retirement account and receive a distribution. That would be considered "income in respect of a decedent" which is earned by a deceased person prior to death. Because it was paid after death the income is taxable to the recipient in the year paid.

You would report the inherited income based on the form it takes. Inherited retirement is reported as 1099-R (retirement section), while inherited property sold is reported in Investment section

amiedignan

Level 2

I inherited a Money from my father's IRA when he passed away in April.

DawnC0

Level 12

Usually your inheritance is not taxable and is not reported on your tax return. However if you inherit property that produces income such as interest, dividends, or rents, that income is taxable and reportable on your return.