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Inheritance tax from Bear Stearns Sec Corp
I received an inheritance from my father from his Bear Stearns account. It was divided among 5 siblings. I am married, but do not work. My husbands gross amt for the year was 36,500.00. Do I need to file this separately or does it get included with our income on our 1040. Also I paid 20% in taxes on that money already. Will I see any of that back. Thank you so much for any help. Debbie
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The money from the Bears Stearns account is from an IRA or 401K. You are NOT paying inheritance tax, you are paying income tax.
Traditional IRAs are funded with before-tax dollars. The IRA grows tax-deferred, NOT tax-free. That means that, when the money is finally distributed, income taxes must be paid, either by the original owner or his heirs, in this case YOU! You will get a Form 1099-R that reports the distribution and the withheld taxes. It needs to be included on your tax return on Lines 15a and 15b. Fortunately, because it is a inherited IRA, you will not have to pay the 10% Early Withdrawal Tax. |
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