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.

advertisement
Tax Glossary

Section 457 plan

Deferred compensation plan set up by a state or local government, or tax-exempt organization, which allows tax-free deferrals of salary.

More terms