My brothers and I recently received about $20,000 dollars from a trust fund that my grandparents set up when we were kids. It was set up as a college trust fund with whatever remained in the trust fund (after college) being distributed evenly when one of the parents passed away. The trust fund was invested in stocks and bonds until it was recently liquidated and dispursed to the grandchildren. The money was not taxed prior to the money being direct deposited. My questions are:

1) Do we have to list this on our income tax form?
2) Will we receive a particular type of form in the mail? (1099G, etc... )
3) Under what part of the federal income tax form would this be listed?

Any help would be greatly appreciated :)

There is no federal tax on inheritances. Most of the states do not tax inheritances. For your state, check at the state web site. For more information: Your U.S. Tax Return: Tax on Inheritances

MukatA:

This is NOT an inheritance; it is a trust fund distribution, which is, in all likelihood, subject to income taxes.

GhostofWinter:

You will probably get a Form 1099-R from the trust custodian, which will detail how the distribution needs to be taxed.

I recommend that you get professional tax help for your 2008 tax return. Reporting trust distributions can be tricky,

My husband received a part of my deceaded brother in law pension plan it was 25,0000 will he have to pay taxes on it. I called the pension plan in Wyoming and the lawyer in Wyoming and both told us they would not be sending a 1099 but they couldnyt tell me if it was taxable income

My brother inlaw passed away and his mother went after his estate she hired a lawyer and he said it would have to be divided to all his siblings to . It was he retirement plan so does my husband have to claim it on his taxes the pension and the lawyer said they would not be sending us a 1099 but they didn't give me a answer on what to do it was 25,ooo a piece

I can't tell if you have answered my question

If I received a $10,000 cash inheretance frommy father who lived in another country, do I have to pay any taxes?

Lauracha:

No federal estate taxes are due on this $10K to the low amount. State inheritance tax MAY be due; depends on the state.

GrannyRowe:

You have not provided enough information for us to provide anything close to correct guidance.

What TYPE of pension plan? If it is a 401K or 403B, it is likely taxable, but if it was a Roth IRA or a Roth 401K, then probably not.

Besides, this kind of tax advice is BEST handled face-to-face with a competent estate tax planner.