Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I actually have a Tax question. Federal Income Tax, State.

I actually have a Tax...
I actually have a Tax question.
JA: What state are you in? It matters because laws vary by location.
Customer: Federal Income Tax
JA: Has anything been filed or reported?
Customer: Washington State. Yes, I have filed.
JA: Anything else you want the lawyer to know before I connect you?
Customer: I am wondering about tax liability on a small inheritance from my mother.
Show More
Show Less
Ask Your Own Tax Question
Customer reply replied 7 months ago
My 3 siblings and I each received an equal share of about $90,000 in savings and investments when my mother passed away last year. I treated this as regular income on my tax return. Was this correct? Do I owe federal income tax on inherited money?
Answered in 7 minutes by:
4/19/2017
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,286
Experience: Taxes, Immigration, Labor Relations
Verified

That is not correct.

Inheritance SPECIFICALLY excluded from gross income for income tax purposes.
You do not need to report the value of your inheritance on your individual tax return.

However - it is possible that you receive taxable income AFTER assets are inherited.
That is classified as income in respect of the decedent IRD.

For instance - if you take distribution from inherited retirement account - that is taxable.

Let me know if you need any help.

Ask Your Own Tax Question
Customer reply replied 7 months ago
Ahh yes, the money was from retirement accounts and annuities that my mother had.

Then - yes - distributions are taxable.

But that what you requested AFTER your mother passed away - and such distributions are taxed the same way as if they were made to your mother were she alive.

I bet you received reporting forms 1099R for that?
Generally we may spread distributions from inherited retirement accounts over several years.

But you may take a lump sum distribution as you did.

Ask Your Own Tax Question
Customer reply replied 7 months ago
we took lump sums and yes I got 1099Rs. My wife believes with all her heart and soul that we should not have paid taxes on this money because it was "inheritance." Your explanation clears it up. Thanks. I won't say "told you so" to my dear spouse though​.

See here

https://www.irs.gov/publications/p559/ar02.html#en_US_2016_publink100099580

Income in respect of a decedent must be included in the income of one of the following.

  • The decedent's estate, if the estate receives it.

  • The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it.

  • Any person to whom the estate properly distributes the right to receive it.

There are some examples . Let your wife to make her own conclusion.

Ask Your Own Tax Question
Customer reply replied 7 months ago
I will do that.

I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all Social Security / Tax related issues.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,286
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,286
30,286 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,336 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,906 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
A Client inherited an IRA from his mother on her death for
A Client inherited an IRA from his mother on her death for $40,000 and wants to take the money. His state has no inheritance tax. He is below the federal inheritance tax $5.45 million dollar level. He… read more
Lev
Lev
Tax Advisor
30,286 satisfied customers
Inherited property in 2014 and sold it in 2016. I have
Inherited property in 2014 and sold it in 2016. I have questions about filing the estate's taxes as well as how to report the capital loss on my personal taxes … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,557 satisfied customers
If you receive an inheritance how much tax are you charged?
If you receive an inheritance how much tax are you charged? … read more
Lev
Lev
Tax Advisor
30,286 satisfied customers
I am helping my sister in law file a PA inheritance tax
I am helping my sister in law file a PA inheritance tax return form PA-1500. My question however is federal. There was an IRA without a beneficiary that was distributed to the estate and will be distr… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
My mother passed in PA. I have an inherited IRA. I am told
My mother passed in PA. I have an inherited IRA. I am told if i disclaim, it will go to her estate. If it goes to her estate and gets cashed out, what are the tax implications beyond 4.5% inheritance … read more
Lev
Lev
Tax Advisor
30,286 satisfied customers
Suppose my taxable income in 220,000 this year and the tax
Suppose my taxable income in 220,000 this year and the tax rate is X up to 200K, but Y for 200and over, do I pay Y on the full 220K or just that above 200K? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Can I report rental income in my tax return on a property
Can I report rental income in my tax return on a property thar is owned by my father? He does not live in the US is not a US citizen and can sign a document to allow me to receive the rental… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,906 satisfied customers
Does DC have an inheritance tax for DC residence who receive
Does DC have an inheritance tax for DC residence who receive an inheritance from a residentof California? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
834 satisfied customers
Under current law a 100,000 taxable income pays $10,365 plus
Under current law a 100,000 taxable income pays $10,365 plus 25% of the amount exceeding $79,400 i.e. about $16,000. Under tax reform will the tax be $25,000? … read more
Lev
Lev
Tax Advisor
30,286 satisfied customers
What is the tax schedule on inherited Stretch I.R.A for
what is the tax schedule on inherited Stretch I.R.A for children after their inheritance while they are still teenagers, before they reach 70 years of age? … read more
Lev
Lev
Tax Advisor
30,286 satisfied customers
What are tax rules for an inherited Roth IRA, GA, the
what are tax rules for an inherited Roth IRA JA: Since estate law varies from place to place, can you tell me what state this is in? Customer: GA JA: What documents or supporting evidence do you have?… read more
Lev
Lev
Tax Advisor
30,286 satisfied customers
I have 160K from an inherited on demand IRA distribution for
Hello, I have 160K from an inherited on demand IRA distribution for 2016. My home is free and clear. My property taxes on it are 14K. I donated 25K to charity. Based upon these figures, I have no othe… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
834 satisfied customers
Adjusted individual tax return for 2014(Iowa),says no
Adjusted individual tax return for 2014(Iowa),says no response to letter of inquiry,disallowed health insurance. deduction.says my wife and I owe$600.00.she called # and was told to show proof of insu… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
An inherited annuity I pay tax on but is the full amount
An inherited annuity I pay tax on but is the full amount combined with my income and taxed again? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Would it be correct to report a foreign cash inheritance as
would it be correct to report a foreign cash inheritance as an initial and final on form 3520? bequest, no trust, will require FBAR now and for some years but the 3520 is mny concern … read more
abci168
abci168
Principal
27 satisfied customers
I took a distribution from an inherited IRA and I'm wonderin
I took a distribution from an inherited IRA and I'm wonderin if I have to make estimated tax payments on that amount? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,906 satisfied customers
Has the tax rate on an inheritance for non residents
Has the tax rate on an inheritance for non residents recently been changed? Iv'e been told it is now 5% and no longer 30%.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,557 satisfied customers
US State Tax Law Regarding Inheritance: I would like to find
US State Tax Law Regarding Inheritance: I would like to find out if inheritance from a parent in Georgia would be taxable for children/grandchildren living in North Carolina, Maryland, or Georgia. The… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,906 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x