For the latest information about developments related to Pub. 590-B, such as legislation enacted after it was published, go to IRS. gov/Pub590B.
Distributions to victims of domestic abuse. Beginning with distributions made after December 31, 2023, a distribution to a domestic abuse victim is not subject to the 10% additional tax on early distributions if certain requirements are met. For more information, see Distributions to victims of domestic abuse, later.
Distributions for emergency personal expenses. Beginning with distributions made after December 31, 2023, a distribution to an individual for certain emergency personal expenses is not subject to the 10% additional tax on early distributions if certain requirements are met. For more information, see Distributions for emergency personal expenses, later.
Transfers and rollovers of assets and the substantially equal payment method. Beginning after December 31, 2023, certain transfers and rollovers of assets from qualified plans or annuity contracts using the substantially equal periodic payment method are not considered a modification of the distribution method if certain requirements are met. See Transfers and rollovers of assets, for more information.
Excise tax relief for certain 2024 required minimum distributions. The IRS will not assert an excise tax in 2024 for missed RMDs if certain requirements are met. See Notice 2024-35, available at IRS. gov/irb/2024-19_IRB#NOT-2024-35, for details.
Income on corrective distributions of excess contributions. The income from the corrective distribution of excess contributions made on or after December 29, 202022, is no longer subject to the 10% extra tax on early distributions that was in place in 2010. See Pub. 590-A for more information.
Modification of required distribution rules for designated beneficiaries. If an IRA owner dies in a tax year starting after December 31, 2019, there are new rules about the minimum amount of money that certain beneficiaries must receive. All distributions must be made by the end of the 10th year after death, except for distributions made to certain eligible designated beneficiaries. See 10-year rule, later, for more information.
Simplified employee pension (SEP) and SIMPLE plans. SEP and SIMPLE IRAs aren’t covered in this publication. They are covered in Pub. 560, Retirement Plans for Small Business.
Deemed IRAs. A qualified employer plan, also known as a retirement plan, can keep a separate account or annuity under the plan (called a “deemed IRA”) for employees to contribute to if they want to. If the separate account or annuity meets all the other requirements of an IRA, it will only have to follow the rules of an IRA. An employees account can be treated as a traditional IRA or a Roth IRA. For this purpose, a “qualified employer plan” includes:
Statement of required minimum distribution (RMD). If an RMD is required from your IRA, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the RMD to you, or offer to calculate it for you. The report or offer must include the date by which the amount must be distributed. The report is due January 31 of the year in which the minimum distribution is required. It can be provided with the year-end fair market value statement that you normally get each year. No report is required for section 403(b) contracts (generally tax-sheltered annuities) or for IRAs of owners who have died.
IRA interest. Although interest earned from your IRA is generally not taxed in the year earned, it isnt tax-exempt interest. Tax on your traditional IRA is generally deferred until you take a distribution. Dont report this interest on your return as tax-exempt interest. For more information on tax-exempt interest, see the instructions for your tax return.
Net Investment Income Tax (NIIT). For purposes of the NIIT, net investment income doesnt include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), or 457(b) plans, and IRAs). However, these distributions are taken into account when determining the modified adjusted gross income threshold. Distributions from a nonqualified retirement plan are included in net investment income. See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information.
Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
This publication discusses distributions from individual retirement arrangements (IRAs). An IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement. For information about contributions to an IRA, see Pub. 590-A.
Let’s face it – inheriting an IRA can feel like finding a pot of gold, but there’s often a tax collector waiting around the corner. If you’ve recently inherited an IRA or expect to in the future, understanding the tax implications is crucial to avoid costly mistakes that could significantly reduce your inheritance.
The Quick Answer
Yes, beneficiaries typically do pay taxes on inherited traditional IRAs. But the amount of tax you have to pay and when you have to pay it depend on a number of things, such as how close you were to the person who died, the type of IRA you have, and how you choose to take the money out.
Traditional IRA vs. Roth IRA Inheritance: Tax Differences
The first thing you should know is the difference between getting a traditional IRA and getting a Roth IRA:
Traditional IRA inheritance
- Distributions are generally taxable at your ordinary income tax rate
- You’ll pay taxes as you withdraw the money
- The original account holder received tax deductions when contributing to this account
Roth IRA inheritance:
- Generally tax-free if the Roth IRA was open for at least five years
- The original account holder already paid taxes on this money before contributing
- You won’t face income taxes on withdrawals in most cases
I remember when my uncle passed away and left me his traditional IRA. I was initially excited about the inheritance but quickly realized I needed to understand the tax implications before making any decisions.
The 10-Year Rule: Major Change for Non-Spouse Beneficiaries
The SECURE Act of 2019 dramatically changed how most non-spouse beneficiaries handle inherited IRAs Before this change, non-spouse beneficiaries could stretch distributions (and the related tax burden) over their lifetime
Now, most people who aren’t married must empty an IRA they inherited within 10 years of the death of the original owner. In order to avoid paying as much in taxes, this could mean taking out more money in a shorter amount of time.
There are some exceptions to this rule, which we’ll cover below.
How Your Relationship to the Deceased Affects Taxation
If You’re a Surviving Spouse
As a surviving spouse, you have the most flexibility when inheriting an IRA. Your options include:
- Treat the IRA as your own – Roll the assets into your own IRA
- Remain a beneficiary of the inherited IRA
- Take a lump-sum distribution (fully taxable if a traditional IRA)
If your spouse died before taking required minimum distributions (RMDs), and you choose option #1, you won’t need to take RMDs until you reach age 73. If you choose option #2, you can delay RMDs until your spouse would have turned 73.
If You’re Not a Spouse
Non-spouse beneficiaries have fewer options:
- You can’t treat the account as your own
- The 10-year rule usually applies (entire balance must be withdrawn by December 31st of the 10th year after death)
- You’ll pay taxes on distributions from traditional IRAs at your ordinary income rate
There are exceptions if you’re an “eligible designated beneficiary” – someone who is:
- Chronically ill or disabled
- A minor child of the original owner
- Not more than 10 years younger than the original owner
In these cases, you might be able to stretch distributions over your life expectancy instead of being limited to the 10-year rule.
When Do You Actually Pay the Taxes?
You pay taxes on inherited IRA distributions in the year you take the money out. This is important to understand because it affects your tax planning strategy.
For example, if you inherit a $500,000 traditional IRA and withdraw it all in one year, that $500,000 gets added to your taxable income for that year. This could easily push you into a much higher tax bracket.
On the other hand, if you spread withdrawals over multiple years (within the required timeframe), you might keep yourself in a lower tax bracket each year.
Year-of-Death Required Distributions
Here’s something many beneficiaries don’t realize: If the original account owner hadn’t taken their required minimum distribution (RMD) for the year they died, YOU as the beneficiary must take it by December 31 of that year.
If you forget to do this, you could face a hefty 25% penalty on the amount that should have been withdrawn. (Note: This penalty was reduced from 50% to 25% in recent years).
This is particularly problematic if someone dies late in the year, as Frank St. Onge, an enrolled agent at Total Financial Planning, points out.
Common Scenarios and Tax Implications
Let’s look at a few common scenarios:
Scenario 1: Adult Child Inherits Parent’s $300,000 Traditional IRA
- Subject to 10-year rule
- Taking it all at once could add $300,000 to taxable income in one year
- Spreading it over 10 years means roughly $30,000 added to taxable income annually
- Potentially much lower tax impact with the spreading approach
Scenario 2: Spouse Inherits $500,000 Traditional IRA
- Can roll over to own IRA
- No immediate tax consequences
- Will follow normal RMD rules based on own age
- Taxes paid gradually as RMDs are taken
Scenario 3: Inheriting a Roth IRA Worth $250,000
- Generally tax-free distributions
- Still subject to 10-year rule for non-spouse beneficiaries
- No tax advantage to delaying withdrawals
7 Key Things All IRA Inheritance Beneficiaries Should Know
- Spouses have the most options – They can roll the IRA into their own or remain a beneficiary
- Choose your withdrawal timing carefully – Strategic withdrawals can minimize your tax burden
- Don’t forget year-of-death RMDs – If the original owner died before taking their required distribution for that year, you must take it
- Take available tax breaks – For large estates subject to estate tax, beneficiaries may get an income tax deduction
- Beneficiary forms matter – Missing or incomplete beneficiary designations can dramatically change inheritance outcomes
- Be careful with trusts as beneficiaries – Improperly drafted trusts can limit options and increase tax burdens
- Roth IRAs simplify inheritance taxes – Consider helping parents convert to Roth during their lifetime if appropriate
Strategies to Minimize Taxes on Your Inherited IRA
So what can you do to reduce the tax impact? Here are some strategies:
1. Spread Out Distributions
Even with the 10-year rule, you don’t have to wait until year 10 to take everything. You can take distributions each year to “fill up” lower tax brackets without pushing yourself into higher ones.
2. Time Distributions with Income Fluctuations
As Jonathan Fishburn, a tax-and-estate specialist with TIAA notes, “If you know you will be getting a big bonus in 2026, maybe you don’t take a distribution that year. If you know you won’t be getting one, maybe you do.”
3. Use Inherited IRA Funds to Bridge Income Gaps
If you’re retiring soon and delaying Social Security until 70, you might use inherited IRA distributions to provide income during those years when you’re in a lower tax bracket.
4. Consider How Distributions Affect Other Tax Items
Remember that increasing your income with IRA distributions might:
- Push you into higher Medicare premium brackets
- Make more of your Social Security taxable
- Reduce eligibility for certain deductions and credits
Where to Get Help With Your Inherited IRA
Given the complexity of inherited IRA rules, here are some resources to consider:
- IRS Website – Provides detailed rules but not personalized advice
- Your IRA Custodian – Can explain your specific plan options
- Professional Help – Consider a fee-only fiduciary financial advisor or tax professional with experience in inherited IRAs
When I inherited my uncle’s IRA, I initially made the mistake of trying to figure everything out on my own. After realizing how complex the rules were, I consulted with a financial advisor who specialized in inherited IRAs, and it was definitely worth the fee.
The Worst Mistakes Beneficiaries Make
Based on my research and personal experience, here are some common pitfalls to avoid:
- Taking a lump sum without understanding tax consequences
- Missing the year-of-death RMD
- Failing to set up the inherited IRA properly
- Not understanding the 10-year rule
- Ignoring how distributions impact overall tax situation
Final Thoughts
Inheriting an IRA can be a tremendous financial gift, but it comes with strings attached in the form of complex tax rules. The key is to understand your options based on your relationship to the deceased and the type of IRA you’ve inherited.
Don’t rush into decisions about your inherited IRA. Take the time to understand the rules and consider consulting with a financial professional who specializes in this area. With proper planning, you can maximize the value of your inheritance while minimizing the tax impact.
Remember, everyone’s situation is unique – your specific tax circumstances, relationship to the deceased, and the details of the inherited IRA will all factor into the best approach for your situation.
Have you dealt with an inherited IRA? What challenges did you face? I’d love to hear your experiences in the comments below!
Illustrated Recapture Amount—Allocation Chart
| Enter the amount from your 2024 Form 8606, line 19 | $85,500 | |||
| Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. You will now allocate the amount you entered above (2024 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution wasnt allocable to the amount). The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. Note. Once you have allocated the full amount from your 2024 Form 8606, line 19, STOP. See Ishmael’s Example above. | ||||
| Tax Year | Your Form | |||
| 2024 | Form 8606, line 20 | $10,000 | Form 8606, line 22 | $55,500 |
| 2005 | Form 8606, line 18 | $10,000 | Form 8606, line 17 | $-0- |
| 2016 | Form 8606, line 18; and Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b* | $20,000 | Form 8606, line 17; and Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a** | $20,000 |
| 2024 | Form 8606, line 25c | _____ | ||
| * Only include those amounts rolled over to a Roth IRA. ** Only include any contributions (usually box 5 of Form 1099-R) that were taxable to you when made and rolled over to a Roth IRA. | ||||
Example.
Ishmael, age 32, opened a Roth IRA in 2000. He made the following transactions into his Roth IRA.
- He moved $10,000 from his traditional IRA to his Roth IRA in 2005. He put together a 2005 Form 8606 and put it with his 2005 Form 1040. He put $0 on line 17 of Form 8606 because he deducted all of his contributions to the traditional IRA. This means he has no reason to claim a tax deduction. He entered $10,000 on line 18 of Form 8606. He also wrote “0” on line 15a of Form 1040 and “10,000” on line 15b.
- As soon as he changed jobs in 2016, he moved the $20k left in his qualified retirement plan into a Roth IRA. He used a 2016 Form 1040 to file his taxes. On line 16a of Form 1040, he wrote down $20,000 because that’s how much was shown in box 1 of his 2016 Form 1099-R. Box 5 of his 2016 Form 1099-R showed $0 because he didn’t put any money into the qualified retirement plan after taxes. On line 16b of Form 1040, he wrote down $20,000. This is the amount of tax that was carried over from 2016 to 2017.
The total balance in his Roth IRA as of January 1, 2024, was $105,000 ($50,000 in contributions from 2000 through 2023 + $10,000 from the 2005 conversion + $20,000 from the 2016 rollover + $25,000 from earnings). He hasnt taken any early distribution from his Roth IRA before 2024. In 2024, he made a contribution of $5,500 to his Roth IRA.
He took an early withdrawal of $85,500 from his Roth IRA in August 2024 to use as a down payment on his first home. See his filled out Illustrated Recapture Amount Allocation Chart to see how he allocated the amounts from the above transactions. Based on his allocation, he would enter $20,000 on his 2024 Form 5329, line 1 (see Amount to include on Form 5329, line 1, earlier). He should also report $10,000 on his 2024 Form 5329, line 2, and enter exception 09 because that amount isnt subject to the 10% additional tax on early distributions.
To figure the taxable part of a distribution that isnt a qualified distribution, complete Form 8606, Part III.
You arent required to take distributions from your Roth IRA at any age. The minimum distribution rules that apply to traditional IRAs dont apply to Roth IRAs while the owner is alive. If the owner of a Roth IRA dies, however, some of the minimum distribution rules that apply to traditional IRAs also apply to Roth IRAs. These rules are explained below under Distributions After Owners Death.
Minimum distributions.
If a Roth IRA owner dies, the minimum distribution rules that apply to traditional IRAs apply to Roth IRAs as though the Roth IRA owner died before their required beginning date. See When Can You Withdraw or Use Assets? in chapter 1.
Distributions to beneficiaries.
Combining with other Roth IRAs.
Distributions that arent qualified distributions.
.
If distributions from an inherited Roth IRA are less than the required minimum distribution for the year, discussed in chapter 1 under When Must You Withdraw Assets? (Required Minimum Distributions), you may have to pay a 25% excise tax for that year on the amount not distributed as required. For the tax on excess accumulations (insufficient distributions), see Excess Accumulations (Insufficient Distributions) under What Acts Result in Penalties or Additional Taxes? in chapter 1. If this applies to you, substitute “Roth IRA” for “traditional IRA” in that discussion..
For people who lost money because of certain major disasters, there are special rules about tax-favored withdrawals, income inclusion, and repayments. See Qualified Disaster Recovery Distributions, later, for more information.
The principles set forth in Notice 2005-92, 2005-51 I.R.B. 1165, available at IRS.gov/IRB/2020-28_IRB (which provides guidance on the tax-favored treatment of distributions for victims of Hurricane Katrina), generally also apply to these rules.
If you received a qualified disaster recovery distribution, it is taxable, but isn’t subject to the 10% additional tax on early distributions. (Use Form 8915-F to figure the taxable portion of the distribution.) However, the distribution is included in income ratably over 3 years unless you elect to report the entire amount in the year of distribution. For example, if you received a $18,000 qualified disaster recovery distribution in 2021, you can include $6,000 in your income in 2021, 2022, and 2023. However, you can elect to include the entire distribution in your income in the year it was received. Also, you can repay the distribution and not be taxed on the distribution. See Repayment of Qualified Disaster Recovery Distributions, later.
If you received a distribution from an eligible retirement plan to purchase or construct a main home but didn’t purchase or construct a main home because of a major disaster, you may be able to repay the distribution and not pay income tax or the 10% additional tax on early distributions. See Recontribution of Qualified Distributions for the Purchase or Construction of a Main Home, later.
Use Forms 8915-D and 8915-F to report qualified disaster distributions and repayments. Also report repayments of qualified distributions for home purchases and construction that were canceled because of qualified disasters on 8915-D or 8915-F, as applicable.
Qualified disaster recovery distributions.
Main home (principal place of abode).
Qualified disaster.
Qualified disaster area.
Incident period.
Qualified disaster recovery distribution.
Applicable date.
Distribution limit for qualified disaster recovery distributions.
Example.
In 2021, you received a distribution of $16,000. In 2022, you receive a distribution of $10,000 for the same disaster. Separately, each distribution meets the requirements for a qualified disaster recovery distribution. If you decide to treat the entire $16,000 received in 2021 as a qualified disaster distribution, only $6,000 of the 2022 distribution can be treated as a qualified disaster recovery distribution for the same disaster.
Economic loss.
Eligible retirement plan.
Qualified disaster recovery distributions are included in income in equal amounts over 3 years. However, if you elect, you can include the entire distribution in your income in the year it was received.
Qualified disaster recovery distributions aren’t subject to the 10% additional tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Also, if you are receiving substantially equal periodic payments from a qualified retirement plan, the receipt of a qualified disaster recovery distribution from that plan wont be treated as a change in those substantially equal payments merely because of that distribution. However, any distributions you received in excess of the $22,000 qualified disaster recovery distribution limit may be subject to the additional tax on early distributions.
If you choose, you can generally repay any portion of a qualified disaster recovery distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Also, you can repay a qualified disaster distribution made on account of a hardship from a retirement plan. However, see Exceptions, later, for qualified disaster distributions (or qualified disaster recovery distributions) you cannot repay.
You have 3 years from the day after the date you received the qualified disaster recovery distribution to make a repayment. The amount of your repayment cant be more than the amount of the original distribution. Amounts that are repaid are treated as trustee-to-trustee transfers and are not included in income. Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a rollover.
For more information on how to report distributions and repayments, see the Instructions for Form 8915-D (in the case of qualified 2019 disasters) or the Instructions for Form 8915-F (in the case of qualified distributions received in 2020 and later years).
Exceptions.
Repayment of distributions if reporting under the 1-year election.
Example.
Maria received a $19,000 qualified disaster recovery distribution on February 15, 2024. After receiving a reimbursement from her insurance company for a casualty loss, Maria repays $19,000 of the qualified disaster recovery distribution on September 10, 2024. She reports the distribution and repayment on Form 8915-F, which she files with her timely filed 2024 tax return. As a result, no portion of the distribution is included in income on her return.
Repayment of distributions if reporting under the 3-year method.
.
If, during a year in the 3-year period, you repay more than is otherwise includible in income for that year, the excess may be carried forward or back to reduce the amount included in income for the year..
Example.
John received an $18,000 qualified disaster recovery distribution on November 15, 2024. He doesn’t elect to include the entire distribution in his 2024 income but elects to include $6,000 on each of his 2024, 2025, and 2026 tax returns. On November 10, 2025, John repays $9,000. He makes no other repayments during the allowable 3-year period. John may report the distribution and repayment in either of the following two ways.
- Report no income on his 2025 tax return, and send the extra $3,000 ($9,000 – $6,000) to 2026. That year, lower the amount he reports as income to $3,000.
- His 2025 tax return should show no income, his 2026 tax return should show $6,000 in income, and his 2024 tax return should be changed to show that the amount that was previously included in income is now only $3,000 ($6,000 – $3,000).
Reporting repayments.
If you received a qualified disaster recovery distribution to purchase or construct a main home in certain major disaster areas, you can recontribute all or any part of that distribution to an eligible retirement plan.
Applicable recontribution period.
A qualified disaster under the SECURE 2.0 Act of 2020 is any major disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act after December 27, 2020.
Qualified home purchase distribution.
Any amount that is recontributed during the applicable recontribution period, is treated as a trustee-to-trustee transfer and is not included in income. Also, for purposes of the one-rollover-per-year limitation for IRAs, a recontribution to an IRA is not considered a rollover.
A qualified disaster recovery distribution not recontributed during the applicable recontribution period may be taxable for the year distributed and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions.
See Form 8915-D (for qualified 2019 disaster distributions) or Form 8915-F (for qualified 2020 disaster distributions) if you received a qualified distribution that you recontributed, in whole or in part, before the applicable recontribution period. See Form 8915-F for qualified disasters that occur after January 25, 2021.
If, after filing your original return, you make a repayment, the repayment may reduce the amount of your qualified disaster distributions that were previously included in income. Depending on when a repayment is made, you may need to file an amended tax return to refigure your taxable income.
If you make a repayment by the due date of your original return (including extensions), include the repayment on your amended return.
If you make a repayment after the due date of your original return (including extensions), include it on your amended return only if either of the following applies.
- You chose to count all of your qualified disaster recovery payments as income in the year they were made (but not more than three years ago) on your first tax return.
- You decide to carry over the extra amount of the repayment to your 2023 or 2022 tax return because it is more than the amount of the qualified disaster recovery distributions that can be counted as income in 2024.
Example.
You received a qualified disaster recovery distribution in the amount of $18,000 on October 16, 2022. You choose to spread the $18,000 over 3 years ($6,000 in income for 2022, 2023, and 2024). On November 19, 2024, you make a repayment of $9,000. For 2024, none of the qualified disaster distribution is includible in income. The excess repayment of $3,000 can be carried back to 2023 or 2022, as applicable.
File Form 1040-X to amend a return you have already filed. Generally, Form 1040-X must be filed within 3 years after the date the original return was filed, or within 2 years after the date the tax was paid, whichever is later.
Form 8915-F replaces Form 8915-E for reporting qualified 2020 disaster distributions and repayments of those distributions made in 2021, 2022, and 2023, as applicable. In previous years, distributions and repayments would be reported on the applicable Form 8915 for that years disasters. For example, Form 8915-D, Qualified 2019 Disaster Retirement Plan Distributions and Repayments, would be used to report qualified 2019 disaster distributions and repayments.
Form 8915-F is a forever form. Beginning in 2021, additional alphabetical Forms 8915 will not be issued. For more information, see the Instructions for Form 8915-F.
Certain taxpayers affected by a federally declared disaster that is declared after December 20, 2019, may be eligible for a mandatory 60-day postponement for certain tax deadlines such as filing or paying income, excise, and employment taxes; and making contributions to a traditional IRA or Roth IRA.
The period beginning on the earliest incident date specified in the disaster declaration and ending on the date that is 60 days after either the earliest incident date or the date of the declaration, whichever is later, is the period during which the deadlines are postponed.
For information about disaster relief available in your area, including postponements, go to IRS News Around the Nation.
If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, forms, or instructions, go to IRS.gov to find resources that can help you right away.
Preparing and filing your tax return.
Free options for tax preparation.
Using online tools to help prepare your return.
.
Getting answers to your tax questions. On IRS.gov, you can get up-to-date information on current events and changes in tax law..
- IRS. You can find a number of tools at gov/Help that can help you find answers to some of the most common tax questions.
- IRS. The Interactive Tax Assistant is a tool at gov/ITA that will ask you questions and give you answers on a number of tax issues based on what you say.
- IRS. gov/Forms: Find forms, instructions, and publications. There are news about the newest tax changes and links that you can use to get answers to your questions.
- You might also be able to get tax information from the software you use for e-filing.
Need someone to prepare your tax return?
.Although the tax preparer always signs the return, youre ultimately responsible for providing all the information required for the preparer to accurately prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov..
Employers can register to use Business Services Online.
Business tax account.
IRS social media.
Online tax information in other languages.
Free Over-the-Phone Interpreter (OPI) Service.
Accessibility Helpline available for taxpayers with disabilities.
Alternative media preference.
Disasters.
Getting tax forms and publications.
Mobile-friendly forms.
Getting tax publications and instructions in eBook format.
Access your online account (individual taxpayers only).
Get a transcript of your return.
Tax Pro Account.
Using direct deposit.
Reporting and resolving your tax-related identity theft issues.
Ways to check on the status of your refund.
Making a tax payment.
What if I can’t pay now?
Filing an amended return.
Checking the status of your amended return.
Understanding an IRS notice or letter you’ve received.
IRS Document Upload Tool.
Schedule LEP.
Contacting your local TAC.
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Below is a message to you from the Taxpayer Advocate Service, an independent organization established by Congress.
The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS). TAS helps taxpayers resolve problems with the IRS, makes administrative and legislative recommendations to prevent or correct the problems, and protects taxpayer rights. We work to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights. We are Your Voice at the IRS.
TAS can help you resolve problems that you haven’t been able to resolve with the IRS on your own. Always try to resolve your problem with the IRS first, but if you can’t, then come to TAS. Our services are free.
- TAS helps all taxpayers, including individuals, businesses, and exempt organizations, as well as their representatives. You might be able to get help from TAS if your IRS problem is costing you money, if you’ve tried to solve it with the IRS but haven’t been able to, or if you think an IRS system, process, or procedure isn’t working right.
- For general tax help at any time, go to www. TaxpayerAdvocate. IRS. gov. For example, if you make a mistake on your tax return or get a notice from the IRS, the site can help you figure out what to do.
- As part of its job, TAS tries to fix big problems that affect a lot of taxpayers. You can report systemic issues at www. IRS. gov/SAMS. (Be sure not to include any personal identifiable information. ).
TAS has offices in every state, the District of Columbia, and Puerto Rico. To find your local advocate’s number:
- Go to www.TaxpayerAdvocate.IRS.gov/Contact-Us,
- Check your local directory, or
- Call TAS toll free at 877-777-4778.
The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. Go to www.TaxpayerAdvocate.IRS.gov/Taxpayer-Rights for more information about the rights, what they mean to you, and how they apply to specific situations you may encounter with the IRS. TAS strives to protect taxpayer rights and ensure the IRS is administering the tax law in a fair and equitable way.
To help you complete your tax return, use the following appendices that include worksheets and tables.
- Appendices A-1, A-2, and A-3—Worksheets for Determining Required Minimum Distributions.
- Appendix B—Life Expectancy Tables. These tables will help you figure out how much of a required minimum distribution you need to make if you haven’t taken all of your money out of all of your traditional IRAs by age 70½, 72, or 73, depending on the year. Table I (Single Life Expectancy). Table II (Joint Life and Last Survivor Expectancy). Table III (Uniform Lifetime).
- Appendix C—Recapture Amount—Allocation Chart. This chart allocates amounts that comprise an early distribution.
- Appendix D—Qualified Charitable Deduction Adjustment Worksheet. This worksheet makes the change that is needed to find the current year’s qualified tax deduction for charitable giving.
Jim’s Illustrated 2025 QCD Adjustment Worksheet
| 1. | Enter the total amounts of contributions deducted in prior years that you were age 70½ or older that did not reduce the excludable amount of qualified charitable contributions in prior years. | 1. | 4,000 |
| 2. | Enter the total amounts contributed and deducted during the current year if you were age 70½ (or older) at the end of the year. If this is your first QCD worksheet, also include contributions you deducted in prior years during which you were age 70½ (or older) at the end of the year. | 2. | -0- |
| 3. | Add the amounts on lines 1 and 2. | 3. | 4,000 |
| 4. | Enter the total amounts of qualified charitable distributions made during the current year, not to exceed $108,000. | 4. | 6,500 |
| 5. | Subtract line 3 from line 4. This is the amount of your excludable qualified charitable distribution for the current year.* | 5. | $2,500 |
| *If zero or less, you have no excludable qualified charitable distribution. If greater than zero, enter -0- on line 1 of your subsequent QCD worksheet. If less than zero, enter the amount as a positive amount on line 1 of your subsequent QCD worksheet. | |||
Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions.
Fully taxable.
Partly taxable.
Form 8606.
If your traditional IRA includes nondeductible contributions and you received a distribution from it in 2024, you must use Form 8606 to figure how much of your 2024 IRA distribution is tax free.
When figuring the nontaxable and taxable amounts of distributions made prior to death in the year the IRA account owner dies, the value of all traditional (including SEP) and SIMPLE IRAs should be figured as of the date of death instead of December 31.
Contribution and distribution in the same year.
Reporting your nontaxable distribution on Form 8606.
Inherited IRAs – What should I do with this?
FAQ
What is the new IRS rule for inherited IRAs?
New IRS rules, effective in 2025, require most non-spousal beneficiaries of inherited IRAs to take annual required minimum distributions (RMDs) and empty the account within 10 years of the owner’s death, if the original owner was already taking RMDs. These beneficiaries will face a 25% penalty for any missed RMDs starting in 2025. The IRS previously waived penalties for missed RMDs for 2020–2024, but these waivers have ended. Beneficiaries who are Eligible Designated Beneficiaries (e. g. Some people (like a spouse, minor child, or disabled person) don’t have to follow the 10-year rule and must follow different rules.
How much tax will I pay on inherited IRA?
The 94. 1. The 1% tax trap: an unpleasant surprise: if you’re not careful, taxes on an inherited retirement account can take up to 94% of the money in it. 1% of its value. Aug 1, 2025.
How do I avoid paying taxes on my inherited IRA?
Roth IRAs are funded with after-tax dollars. That means the account holder has already paid taxes on the contributions when they were made. As a result, distributions from an inherited Roth IRA are tax-free if the account has been open for at least five years.
What happens if you inherit an inherited IRA?
If you inherit an IRA, it becomes an “Inherited IRA” and you must follow specific rules for distributions, often requiring you to withdraw all funds within 10 years, or by age 102 for eligible designated beneficiaries, which have tax implications for both traditional and Roth IRAs. You cannot roll it into your own traditional IRA, but you can move it directly to another properly titled inherited IRA to continue its tax-deferred growth, though distribution timelines still apply.