Do I have to file inheritance income on my income tax forms
Asked Jan 22, 2009, 03:55 PM
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 :)