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Merlo
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Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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As a named beneficiary of my recently deceased mothers (a

Resolved Question:

As a named beneficiary of my recently deceased mother's (a Canadian resident) annuities(held with a Canadian Insurance Co), I recently received a check for $65k USD.
I am a retired Calif resident with a joint income of $46k.
Do I have any federal or state tax liability on these funds or the dividends earned.
If not how do I report this to the Irs/Ca at tax time without listing it as ordinary income and paying a tax,assuming the bank is required to report the deposited amount?
Submitted: 5 years ago.
Category: Tax
Expert:  Merlo replied 5 years ago.
Hello rwh,

Was your mother a US citizen?

Customer: replied 5 years ago.
No,she was a Canadian. I am also a Canadian,but a Permanent Legal Resident of the US (and soon to become a citizen). i
Expert:  Merlo replied 5 years ago.
Hello again rwh,

As long as your mother was not a US citizen, then there is no possibility that her estate is subject to any US estate taxes. And as far as inheritance taxes, there are no inheritance taxes in the US at the federal level, and there also no inheritance taxes in the state of CA.

You will not need to report the amount you received as an inheritance on either your federal or state returns.

Once you receive that money and invest it on your own, then any earnings you may have on the account after that point would be taxable, but the inheritance itself is not subject to tax.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you rwh.

Customer: replied 5 years ago.
Thanks Merlo.
Then according to your response, the amount doesn't get reported on my tax forms at all.Correct?
Expert:  Merlo replied 5 years ago.
Hello again rwh,

That is correct. You do not need to report this inheritance anywhere on either your federal or state tax returns.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.

Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Merlo
Merlo
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25+ years tax consulting. Specializing in returns for US citizens living abroad