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!

6 Answers

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  • RICK
    Lv 7
    3 weeks ago

    Its not income

    However it is an asset and assets also count against the ACA subsidies

    • NA
      Lv 7
      3 weeks agoReport

      No they don't. The ACA calculation is income plus SSA benefits plus tax-exempt interest. Assets play no part.

  • 3 weeks ago

    No, inheritance is not taxed federally unless it's in the millions.

    • STEVEN F
      Lv 7
      3 weeks agoReport

      There is NO Federal inheritance tax,. PERIOD. The ESTATE tax is paid before there is an inheritance.

  • 3 weeks ago

    Inherited money is not income. It's a gift from the dead person.

  • Judy
    Lv 7
    3 weeks ago

    If they ibherit something tax deferred like an 'IRA, 401K, or annuity. Most other things would not count..

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  • Anonymous
    3 weeks 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.

  • 3 weeks 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.

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