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Is income from an inheritance taxable if the recipient is disabled SSDI?
The inheritance income comes from mutual funds & annuities.
7 Answers
- STEVEN FLv 72 months agoFavourite answer
The inheritance itself is not subject to Federal income tax.
Any income from what you inherited is treated EXACTLY the same a if you had purchased the items yourself.
SSDI has NOTHING to do with how other income is taxed.
- RitaLv 62 months ago
If you are a Social Security Disability Insurance (SSDI) recipient and receive an inheritance, it will not affect your benefits.
Source(s): https://gulfvaping.com/ - RICKLv 72 months ago
In the US Inheritances are not taxable by federal government , are by some states.
However it does count as income and property and will make you ineligible for SSDI if its enough
- AmyLv 72 months ago
Inheritance itself isn't income, but once the property is in your name any income it generates is taxable.
- A HunchLv 72 months ago
Mutual funds - when the person died, you the heir received a stepped up tax basis. Once it's in the heir's name it is no longer related to the deceased.
- there is no federal tax, but if you have a state inheritance tax = yes
Annuity - it depends on the specific annuity and how the annuity was funded.
- Anonymous2 months ago
There are no special inheritance rules for disabled people.
No one here can tell you if the inheritance is taxable because you gave zero details about it. There are only six states that have an inheritance tax.
Federal estate tax is paid by the person's estate before you inherit anything, although most estates are not large enough to actually owe federal tax.
If you've already inherited the assets and the assets are generating income such as interest or dividends, that income isn't considered an inheritance and is taxed as usual.