View Full Version : My mother passed and left me 17000 and I am being taxed can they do that
srosscal
Mar 3, 2010, 07:10 AM
Mother left my brother and sister and I about 17000. Can it be taxed?
MukatA
Mar 4, 2010, 05:14 AM
No, there is no tax on inheritance.
Fr_Chuck
Mar 4, 2010, 05:19 AM
Who is "taxing" you on it ?
ebaines
Mar 4, 2010, 08:26 AM
It depends - if the inheritance is in an IRA and/or 401(k), then yes, it is indeed taxed (as ordinary income to you as you make withdrawals).
Five Rings
Mar 4, 2010, 11:26 AM
Note e-baines comment for it is correct.
If your Mom left you the proceeds of her retirement account or an annuity, or several other things all or a portion of it is taxable. This is called "Income in Respect to a Decedent" or IRD.
See: http://www.irs.gov/pub/irs-pdf/p559.pdf
Start at page 9.