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Inheritance

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misszr2

Junior Member
What is the name of your state? Wisconsin

In 2005 I inherited my father's one lump sum pension income. Do I have to claim that on my income tax returns this year, and if so is there a special form needed? The estate has not been settled completely yet, however I did receive this money. Please advise.
 


shortbus

Member
There are no income tax consequences to you -- it's a gift. If your father's estate was large, there may be estate tax implications for him.
 

abezon

Senior Member
Who pulled the money out of the pension fund? If dad did, there are no tax implications to you. If you inherited the pension & cashed it out, the money will be taxable to you as ordinary income. This is because it would have been taxable to your father had he withdrawn it.
 

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