My mom passed 8/17/17, she was 76. I am her daughter and was listed as a beneficiary on her IRA. After the transfer into my name, I chose to cash out the entire thing. I had full estimated taxes taken out before I received a check. =======The money from the inherited account may be taxable income depending on the type of IRA and whether the contributions were pre-tax or post-tax. Taking a taxable distribution all at once may push you into a higher tax bracket. If you choose to take all the money now, an Inherited IRA will be opened in your name to ensure that tax information is correctly reported to the IRS, and then you can choose to take the money in a single lump sum.
I received a form 1099-R with federal and state taxes listed that I paid and distribution code 4 for death. Also received a form 5498 FMV under $3. Question is, is this a simple fill in the box thing on Turbo Tax or is this something an CPA or tax office should prepare for me?===========>>> the form 5498 does not go on your tax return. The 1099-R that you should receive does. 1099-R's must be sent by Jan 31. So, as said,Form 5498 is an information form, there is no place to enter it on your tax return I mean TB tax. All you have to do is to enter the 1099-R information and answer the questions that follow.I am not familiar with TB tax I guess you may contact TB vendor for some tech help.
Also people tell me I will get the taxes paid back when I file, but since it was an IRA and I am not the spouse I believe taxes were due and I will not get back, unless we overestimated and I paid more than due. =======>as mentioned previously; While sometimes you don't have to pay a tax on inherited money, you will if you inherit a IRA. Since traditional IRAs are funded with pretax dollars, you'll have to pay the taxes on an inherited IRA. how much you'll have to pay in taxes vary depending on your situation.Unlike R-IRA, With a traditional IRA, you will have to pay taxes on the distributions you receive, whether you receive it all at once or spread out over time.since you received the IRA from someone other than your spouse, you can withdraw all of the money at one time, paying the necessary taxes at once. The main factor that determines how much the taxes on an IRA inheritance will be is your total income for the year. The IRS/your state will tax you on the combination of your salary or wages, plus the amount you receive as a distribution from the inheritance. The higher your salary or the higher the amount of money in the inherited IRA, the more you'll have to pay in taxes