Have Tax Questions? Ask a Tax Expert for Answers ASAP
sorry for your loss... you do not owe ant tax on the principal amount on the CD, but
the interest earned on CDs are taxable income. The interest earned in 2007 - is taxable income for 2007. Your bank should issue the form 1099INT - http://www.irs.gov/pub/irs-pdf/f1099int.pdf - that reports your taxable interest. You need to give that form to your tax preparer for considerations.
If you are worry about estate or inheritance taxes - federal estate taxes apply to estates with value above $2,000,000 - so it is unlikely that you owe any federal estate taxes. There is no estate taxes in Georgia (since 2005).