Submitted By: Don
Answered: January 14, 2009 12:00 am

I received a $15,000 inheritance from my mother’s estate. Am I taxed on this?

Inheritances are not subject to federal income taxes. There is no cap on the size of the inheritance that is tax free. However, income you earn on your inheritance becomes taxable. For instance, if you deposit the $15,000 in a bank account, interest on the $15,000 is taxable to you.

advertisement
Careers
Tax Glossary

Ordinary loss

A loss other than a capital loss.

More terms