1099-Misc for Inheritance (2024)

I received a 1099-Misc for a distribution of inheritance. As I understand, inheritance is not taxable income. Is there any circ*mstance where it would be taxable?

I spoke with the attorneys office, and was told that the primary source of the inheritance was from real estate that was sold. I was told that taxes were paid by the estate. They said to file this "Not my Interest to Pay" and reference the TIN for the Payer. If this is correct, how is this done using TurboTax?

Thanks for any thoughts.

‎March 11, 202012:24 PM

Because it was reported in Box 3, the IRS will be looking for it to be on your return. I would recommend that you call the Attorney that sent you the 1099-Misc and ask why the inheritance was reported as Other Income.

You also need to request he send you a Corrected 1099-Misc removing the amount in Box 3. Someindividuals believe that if they remit an amount over $600 they are required the form, when in fact not disbursem*nts are required to be reported to the IRS.

The suggestion that the attorney gave you to state "Notmy interest to pay" is not an acceptable method to not to report the income.

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Whether you need to report depends on what box the funds are shown on the Form 1099-Misc. Normally inherited funds are not taxable.

We will need to know what box the amount is listed in to adequately answer your question if you need to report the funds and if you do where to report the amount.

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Because it was reported in Box 3, the IRS will be looking for it to be on your return. I would recommend that you call the Attorney that sent you the 1099-Misc and ask why the inheritance was reported as Other Income.

You also need to request he send you a Corrected 1099-Misc removing the amount in Box 3. Someindividuals believe that if they remit an amount over $600 they are required the form, when in fact not disbursem*nts are required to be reported to the IRS.

The suggestion that the attorney gave you to state "Notmy interest to pay" is not an acceptable method to not to report the income.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"