Where do I report interest earned from an inheritance?

Forum|Forum|3 years ago
April 7, 2023
2 replies
42 views

My husband received an inheritance after a relative passed away. Where do I report this?

TurboTax Deluxe Online

JansenTTax

Level 2

An inheritance is not taxable income to the recipient of the bequest. In some states, an inheritance is taxed to the estate itself. One the inheritance is invested at a bank or brokerage account, any earnings - interest, dividends, etc. - are taxable just like any other interest or dividends. Just enter the interest in a separate screen, using the name and Fed EIN of the payer of the interest. You may have gotten a 1099-INT if the amount of the interest income is greater than the threshold for filing a 1099. (The whole amount of interest income received in 2022 is taxable even if no 1099-INT was received.)

MayaD

Alumni - Intuit

The IRS doesn't impose an inheritance tax.

Only a handful of states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania) have some kind of inheritance tax. Which state do you live in?

Interest from inherited cash would be taxable

To report the interest :

Sign in to your TurboTax account and open or continue your return
Select Federal from the menu, then Wages & Income
Locate the section titled Investments & Savings and select Show More, then select Start or Revisit next to Interest on 1099-INT