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Federal and California state taxes: Yet another "Do I Need…

Federal and California state taxes...
Federal and California state taxes: Yet another "Do I Need To File" questionMy wife and I receive Social Security benefits totaling a bit more than $35K annually, and in the past we have not needed to file taxes with the IRS or the California Franchise Tax Board. However, in May 2017 we came into a substantial inheritance which included life insurance payouts totaling ~$50K and about $400K in two investment accounts. We had the investment firms cut us checks for the two accounts and reinvested most of the proceeds with our own bank.There are some unrealized capital gains resulting from how the investments have performed since we placed them, but we have not taken any actual dividends nor liquidated any of those assets into bankable, spendable cash. However, the life insurance companies have sent me 1099s reporting negligible interest income (less than $100 total).Do we need to file our taxes for 2017?
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Answered in 1 hour by:
3/18/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,682
Experience: Taxes, Immigration, Labor Relations
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Inheritance is specifically excluded from taxable income.

That is not taxable.

The same is for live insurance paid to you because of the death of the insurance person - not taxable.

But interest is taxable - and seems that is your ONLY income besides social security benefits.

unrealized capital gains are NOT taxable until assets are sold and gains are realized.

So far based on your information - you are NOT required to file.

Filing requirements threshold for married couples in 2017 is $20,800

social security benefits are not taxable in your situation.

Based on all your information - you are NOT required to file for 2017.

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Customer reply replied 1 month ago
Sounds like exactly what I needed to know.I'll indicate my (excellent) rating next time I'm logged into my PC.

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: 32,682
Experience: Taxes, Immigration, Labor Relations
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