Question

Inheritance from deceased cousin

Forum|Forum|6 years ago
February 7, 2020
1 reply
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Earlier in 2019 I received an inheritance of less that $1000.00 from a relatives estate. Today I received a 1099-MISC with that amount entered into box 7. (I've already filed so I will have to file an amended form) If I pug this into Turbo Tax it reduces my refund by $156.00. Why am I paying any tax on this? I didn't think an inheritance of this amount would be taxable.

A

Anonymous_

Employee

@jaljrussell wrote:

Earlier in 2019 I received an inheritance of less that $1000.00 from a relatives estate. Today I received a 1099-MISC with that amount entered into box 7...

A 1099-MISC with an amount in Box 7 (for 2019) indicates you were more in the nature of an independent contractor than a beneficiary. That might make some sense if you happened to be an executor (administrator) of the estate and the estate compensated you for your services.

However, under more usual circumstances, the estate would issue you a K-1 if there were any items of income, gain, deductions, credits, etc. that you might be required to report on your individual income tax return.

You should absolutely contact the executor/administrator of the estate, or other responsible party, and inquire as the rationale behind issuing you a 1099-MISC.