How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard
Richard, Attorney
Category: Estate Law
Satisfied Customers: 55285
Experience:  29 years of experience practicing law, including tax and estate planning.
17027240
Type Your Estate Law Question Here...
Richard is online now
A new question is answered every 9 seconds

I inherited a JTWROS account from my mother, how died in 2011.

This answer was rated:

I inherited a JTWROS account from my mother, how died in 2011. I did not claim the income, roughly $14,000, on my 2011 tax return as I believed this to be part of my non taxable inheritance. I just received a notice from the IRS that I owe approx $3500 in back taxes. Are JTWROS accounts taxable when inherited? I live in Illinios.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.


Good evening. There are different kinds of taxes. It is important to differentiate income taxes from estate and inheritance taxes. There would have been no estate or inheritance tax due on your inheritance of this account, But, if the account earned income, then this income would be subject to income tax. For example, if the account had $140,000 in principal, there would be no estate or inheritance tax on inheriting this. But, if that account earned interest on the principal of $140,000 equal to $14,000, then that $14,000 is subject to income tax.


Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!
Richard and other Estate Law Specialists are ready to help you
Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help! For easy access, my bookmark is: http://www.justanswer.com/law/expert-legalbeacon/