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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15178
Experience:  15years with H & R Block. Divisional leader, Instructor
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This is about inheritance income. In Nov. 2014, my

Customer Question

This is about inheritance income. In Nov. 2014, my father-in-law died. When I did 2014 taxes I had 1099-R forms for income we got from his estate. One form from life insurance; one from an investment firm. My wife's sister was the executor for her father's estate. There were bank shares in my father-in-law's estate that he inherited from his wife, who predeceased him. I understand her sister went through a lot of red tape to find out who currently owned these shares. In December of 2015, United Community Banks, Inc. sent each of my father-in-law's surviving children a check for the shares. My wife was out of town when the check arrived in the mail and we finally deposited the check in January 2016. We have NOT received a 1099 or other tax form related to this income. Do I need to add this income to our 2015 federal and Pennsylvania state tax returns?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.


Adding the amount to your income depends on how the money was distributed. If the estate owned the shares and the estate sold then a K1 should be issued to your wife. The K1 would have information that would be reported such as gain or loss that was recognized.

K1s are generally not sen tout till March or even later so before you file I would suggest you contact the sister that took care of this and ask who is completing the estate return and when (if) they are sending K1s.

It could be that nothing is taxable to your wife but if you file and then get the K1 an amended return would be required of you.

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Expert:  Robin D. replied 1 year ago.

Now that you have viewed my answer please respond