Submitted By: someone
Answered: October 28, 2021 1:18 am

My spouse inherited a $30,000 bank account from her sister-in-law. Do we owe taxes on this?

Inheritances are tax free, regardless of amount. However, if the account starts to earn interest, your spouse must pay tax on the interest from the date of the inheritance.

Tax Glossary

Qualified dividends

Dividends received after 2002 and before January 1, 2011, that are taxed at the long-term capital gain rate.

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