I have been on SSDI (not SSI) benefits for over 10yrs now and am about to receive a $22,000 inheritance from my Grandmother who just passed away a year ago. The money has been held in trust for a year (for sensitive reasons of waiting for my Father to come out of hiding to claim his share) and my 2 sisters & I are to receive our shares in a month or so. After alot of reading of awesome questions & answers on here, I now realize that I don't have to pay taxes on that inheritance, nor do I have to worry about it impacting on my SSDI benefits, however, do I STILL need to report this inheritance money to the IRS? Since I only receive SSDI benefits, I already know I don't have to file IRS forms each year, but am wondering if I have to file IRS tax forms this year on the $22,000 inheritance.
I do not believe you have to report the inheritance as income on your federal income tax return this year, though if the inheritance earned income while it was in the trust (i.e., interest), you might have to report that. You also need to check with state taxing rules to determine if you owe anything on the inheritance to your particular state - the rules vary form state to state, and you are advised to speak with a competent professional familiar with your state taxing laws.
Please note that this is not legal advice, and should not be relied upon as such. Always consult with a competent tax professional to discuss your specific situation!
Social Security Lawyers
I have changed the subject area of your inquiry to "Tax" as that is the more appropriate practice area for your question. You also may want to ask about any state tax agency reporting requirements for your inheritance.
Disclaimer Information on this site is provided by Brian Scott Wayson as general information, not legal advice, and use of this information does not establish an attorney-client relationship. If you have questions about your specific situation, please call an attorney.