Hi, how are you today? My name is XXXXX XXXXX X would love to help you
This money that your mother is receiving is tax free
You do not report it on her tax return at all
You never pay tax on an inheritance.
Ok but what about my sisters pension from her job? My mom is also be getting that possibly next year. Is this also considered inheritance?
The pension will be taxable, as it was taxable income to her sister.
When your mother gets it, she will get a 1099 and you will place it on the line of her tax return for pensions
Is there anything else I can assist you with today?
One last thing. She's thinking of transferring that money to me as a gift, does this mean I do not have to declare that either?
That is correct. Anything she passes to you would be tax free.
Even if she received the pension, and then gave the funds to you - they would be tax free to you
You are so helpful. Thanks so much for your help.
That would be all for now.
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