If my Dad's mom, or my Mom's Dad die, and my parents inherit money, will that money count as regular income?
I'm wondering if they inherit say a hundred thousand or so, will that dramatically reduce their obamacare subsidies, and will they have to pay back tens of thousands at the end of the year? Thank you!
- RICKLv 710 months ago
Its not income
However it is an asset and assets also count against the ACA subsidies
- SlickterpLv 710 months ago
No, inheritance is not taxed federally unless it's in the millions.
- Max HooplaLv 710 months ago
Inherited money is not income. It's a gift from the dead person.
- JudyLv 710 months ago
If they ibherit something tax deferred like an 'IRA, 401K, or annuity. Most other things would not count..
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- Anonymous10 months ago
It depends on what they inherit. Cash in the bank, house, stocks will trigger a tax if there is gain after the date of death.
Traditional IRA money, savings bonds or 401k money will be taxable.
- STEVEN FLv 710 months ago
Inheritance NEVER counts as income AT ALL.
There is no Federal inheritance tax, but some STATES have a state inheritance tax. which is SEPARATE from income tax.