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W-9 required for inheritance?
Anonymous2 views3 answers
I received part of my inheritance from my fathers estate in 2013. The final payment is soon to be distributed. But, now I am being asked to complete a W-9 form by the attorney's office. They are saying their accountant requires it. This wasn't required last year when I received a partial payment. 1. Is a W-9 required for an inheritance? This is from my fathers estate. 2. If the answer to 1 is yes , why wasn't i required to fill one out last year when I received a partial distribution?
The estate may not have had to file an income tax return for 2013. If an income tax return is going to be filed for the estate for 2014, which is likely if an accountant is involved, then they will need your social security number for the return. It doesn't necessarily mean that any of the distribution will be taxable to you, but some of it could be if the estate earned interest and dividends in excess of its expenses. It probably would have been better if they had asked you for it before they made the first distribution, but it is needed if a tax return is to be filed.
The accountant needs your social security number for the preparation of the final 1041. Any net income or expenses of the estate will be reported on that final return and your proportionate share will be reported on a Schedule K-1 of the 1041 for the estate. You will then report that income or take an loss deduction (if you itemize) on your 1040. It may not have been required on the first distribution because there may not have been any net income distributed to you in the prior year OR the return may be filed on a fiscal year that runs from date of death to no later than the month ending just prior to one year from the date of death. This can be handled in many ways but the CPA can explain exactly how it is being reported.
