Is Inheritance taxable? Are Gifts Taxable (to the recipient)

The message "Consider filing a nonresident OH return" reminds you that you should consider filing a nonresident OH return since you had income taxes withheld for OH as shown on your 1099-R form.

OH does treat pension income as regular income. The 1099-R you received is considered an OH source of income. You are required to file a nonresident OH state tax return.

You enter the 1099-R form on the federal return, and the information will flow to your resident PA and nonresident OH returns.

If you are using TurboTax Online,  follow the steps below to prepare PA and OH returns:

1. Enter all your income forms such as W-2 and 1099-R within the Federal return
2. After completing the federal return, prepare a non-resident OH return first. If you don't see OH return, click Add another state
3. Proceed to prepare your nonresident OH return. Depending on the amount of inherited pension income, you should receive a refund if the state taxes withheld is more than the tax liability.
4. The next step is to prepare your resident PA return.

I am so sorry for your loss.

@msagnew2004

It depends. Sale of estate can mean many things. If you inherited a house and sold it, it goes on sch D. If you sold stock you inherited, sch D. If the estate sold stuff and gave you money, the estate will give you a k-1 to put on your return, if needed.

@1Badque2