TurboTax HelpTurboTax HelpIntuit

What's the difference between a gift and an inheritance when it comes to taxes?

SOLVEDby TurboTax1539Updated December 23, 2021

When a gift's value exceeds $15,000, the giver (not the recipient) is responsible for reporting it on their taxes. This is done on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. Read more here.

Gifts valued at $15,000 or less don't need to be reported.

Inheritances are usually not taxed on your federal return, but any income generated from them (like dividend payouts from stock you inherited) may be.

Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania collect a state inheritance tax.

Was this helpful?

You must sign in to vote, reply, or post
TurboTax Desktop BasicTurboTax Desktop BusinessTurboTax Desktop DeluxeTurboTax Desktop Home and BusinessTurboTax Desktop PremierTurboTax Live BasicTurboTax Live DeluxeTurboTax Live Full Service BasicTurboTax Live Full Service Complex IncomeTurboTax Live Full Service Complex Self-EmployedTurboTax Live Full Service DeluxeTurboTax Live Full Service PremierTurboTax Live Full Service Self-employedTurboTax Live PremierTurboTax Live Self-employedTurboTax Mobile Apps DeluxeTurboTax Mobile Apps FreeTurboTax Mobile Apps PremierTurboTax Mobile Apps Self-employedTurboTax Online DeluxeTurboTax Online FreeTurboTax Online PremierTurboTax Online Self-employed
Dynamic AdsDynamic Ads