Do you have to claim money received as inheritance to the irs?

We have looked the information up on the IRS website and also H%26amp;R block but not too clear on this. It talks about 'gifts received' but nothing about cash money...Do you have to claim money you received as inheritance? say to the tune of $40,000, or is it considered a gift and not taxable? Thanks for your help!

Do you have to claim money received as inheritance to the irs?
The grantee (receiver) generally does not pay income or estate taxes on his/her "inheritance". If the money transfers over from a tax deferred account then you might have to pay the unpaid income tax on that.





There is plenty of information on this topic...you are just looking in the wrong place....lookup "estate taxes" lol.
Reply:Was this inheritance outside of a retirement account or other tax-deferred account? If so, there is no income tax on this money.





Was this inheritance part of a traditional IRA or pre-tax employer plan? Did you inherit tax-deferred bonds? Then there will be income tax due on this inheritance. If this is the case you should study your options for receiving this money so taxes are minimized.





For planning purposes, be aware that any earnings on this money after the date of inheritance are taxable.





Inheritances are not gifts. Gifts are made during the donor's lifetime.
Reply:All income must be delcared.


If unsure, see your accountant but it's better to be safe and sleep at night then worry that someone is chasing you.
Reply:No, an inheritance is not considered taxable income.
Reply:If this is life insurance proceeds (death benefit from a life insurance policy), it is tax free if the policy was an owned by an individual.





Consult an accountant.
Reply:No, you do NOT! If any tax is due it is paid by the estate. There are no taxes due from the beneficiaries.
Reply:Yes, you do have to claim it.