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