Declaring cash inheritance as income?

Tommyboy
Tommyboy Member Posts: 2 Newcomer
in Income

I received a cash inheritance from my parent's estate earlier this year and used some of the money. do I need to declare this as income for the state of Virginia and or the IRS?

Best Answer

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 503
    edited December 2023 Answer ✓

    Hi Tommyboy,

    Generally speaking, a cash inheritance is not taxable. However, we may not have enough information to give you a complete answer. The IRS has a simple interactive tool you can use to determine if that money is taxable or not. See this IRS Interactive Assistant.

    If you get a Schedule K-1 from the estate, it will have any taxable income you must report on your personal income tax return, Form 1040.

Answers

  • Tommyboy
    Tommyboy Member Posts: 2 Newcomer

    Hi MathewD,

    Thank you for your answer and the interactive assistance. This really puts my mind at ease.

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