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I cashed in my father's IRA after he died and the bank withheld taxes. Do I need to include this as income on my tax return?

Will I be taxed a second time?

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  Answers  |  1

February 05, 2018

The full value of the IRA is includable as income by the beneficiary of that IRA. If no beneficiary was named, then it is taxable to the estate, which must file Form 1041, Fiduciary Income Tax Return. The withholding tax passes through to either the beneficiary or the estate and is claimed on the respective tax return.

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