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Inherited Annuities

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Stevewest07

Junior Member
What is the name of your state? Pennsylvania

When my father died a few years ago I inherited 3 small annuities that he had set up and were generating monthly payments to him. I had been told at the time that these payouts were not subject to Federal tax as the combined value of the annuties were well below the threshold for inheritence tax. Is that correct or should I be reporting the payouts as income and paying tax on them?
 


Snipes5

Senior Member
Inheritance tax is different than regular income tax. Since you are receiving them, they are income to you, and are therefore taxable. Yes, you should be reporting them. The administrator no doubt sends you 1099's for them each year.

Snipes
 

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