Does my inheritance count as taxable income?

My mom passed in July. I know that after all the probate process, I am going to receive about 26,000. Is this a "taxable"income in the US and Massachusetts? I've looked around on the net, and it seems like I don't. I am also in the process of applying for SS benefits. What will this do to that?

Public Comments

1. This will not be taxable income to you unless it would have been taxable to her. This would have been items that would have been included in gross income if she would have received it prior to death. This would include items such as IRA distributions, accrued interest and dividends, tax-deferred annuities, Series EE bond interest, etc. Generally though most income from an inheritance is not taxed to the IRS or the state unless they fit one of the above categories. Laura H - H&R Block - Senior Tax Advisor 5 **This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.
2. For the federal income tax, inheritances are excluded from gross income. If that $26,000 is an inheritance, it is not taxable income. If it is something else, e.g., a distribution from a IRA of which you were the the beneficiary, it could be taxable.
3. Unless any of the assets were "not previously taxed" such as 401 K or IRAs or some portion of the assets were in a trust established prior to 1976 there would be no tax on this disbursement. There could have been some taxes paid in probate of the estate but the amount you get (with the above exceptions) would be tax free. There would be special rules for any none cash assets you receive such as real estate but that appears not to be the case.
4. Depends on what state you live in. Since the de-coupling of the states from the federal estate tax, some states will tax the estate for a death tax along with you for an inheritance tax. Then you may also be subject to the federal estate tax. I would consider talking to a financial adviser. You would also want to consider a couple of legal documents to help with this in the future for your family. Check out this website for more info: http://www.associatedcontent.com/article/1563930/emergency_documents_powerful_documents.html?cat=17