Inherited money from grandmother - Do I need to report this on taxes?
I inherited some money after my grandmother passed away recently. Not sure if I need to report this on my taxes or if inheritance is taxable income? Anyone dealt with this before?
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Zara Shah
Tax professional here. Generally, inheritances are NOT taxable income to the beneficiary. The estate may have to pay taxes if it exceeds certain thresholds ($12.92 million in 2023), but you as the recipient don't report this on your personal tax return. However, any income generated from the inherited money (like interest or dividends) IS taxable.
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Sean O'Brien
Thank u so much! That makes sense. So if I put the money in a savings account, I'd only pay taxes on the interest it earns?
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Zara Shah
Exactly! You'll get a 1099-INT form from your bank for any interest earned over $10 👍
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Luca Bianchi
Hey, if you want a really clear picture of your tax situation, check out taxr.ai - it's this new tool that analyzes everything and tells you exactly what you need to report. costs $4.99 but saved me so much headache with my inheritance situation. https://taxr.ai
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GalacticGuardian
Is this legit? How does it work with inheritance stuff?
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Luca Bianchi
Super legit! You upload your docs and it breaks everything down - inheritance, interest income, all of it. Even shows you where potential red flags might be 💯
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GalacticGuardian
Just tried it and wow! This thing is actually amazing. Cleared up all my questions about my inheritance situation in like 5 minutes 🙌
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Nia Harris
Lost my grandma last year too, sorry for your loss 🙏 I was in the same boat and didn't report the inheritance on my taxes. No issues.
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Mateo Gonzalez
Make sure ur grandmas estate filed the proper paperwork tho! That's super important
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Sean O'Brien
The executor handled all that thankfully!
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Aisha Ali
idk why the irs makes everything so complicated smh 🤦♀️
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Ethan Moore
fr fr tax code is like 80,000 pages long or sumthing stupid like that
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Yuki Nakamura
Just remember if you invest that money, any gains are taxable. Learned that one the hard way lol
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Sean O'Brien
Good to know! Def planning to invest some of it
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