TurboTax FAQ
TurboTax FAQ
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Do I need to report a cash inheritance?

Not on your federal return. The IRS doesn't impose an inheritance tax.

Only a handful of states (Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania and Tennessee) have some kind of inheritance tax. If you're preparing a return in those states, we'll ask about your inheritance and figure out if it's taxable.

Having said that, interest or other income generated from inherited cash would be taxable.

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