I got a letter from the IRS today. I had not filed as my income was so low. - AgingCare.com

I got a letter from the IRS today. I had not filed as my income was so low.

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Wow....I am going to see my accountant asap. I had called the IRS and they confirmed that I did not have to file. But, got the letter anyway. Now, I have all the inheritance coming my way. I had better know what I am doing, or I will go nuts. These people who are bitter because they are not getting anything better think twice. The Taxes look like they will be killers. I hate giving the government of ours anymore than we have to. They live like kings off of us and retire as millionaires, while we minions work our buns off. Reading the information on this site, sort of scared me as to how I will handle all of this.

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oregongirl, was the house a gift or was it inherited? There is a big difference between the two when it comes to taxes.
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Stop being so snotty about public servants.
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Giving gifts to your kids willINCREASE your tax burden is you give them too much. There will be taxes for YOU to pay on the annuities payable to you. You'll probably get away with the house. The irs doesn't do a lot to enforce that.
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Oregongirl, have you gone to an Elder Law attorney to draw up a Trust? A trust will help lower the tax bite.

Also do you have a 5-year plan?... do you have enough money to self-pay if for some unfortunate chance you had to reside in assisted living or a nursing home? If not, Medicaid will look back 5 years, and if your gave the max or any amount as a gift to your grown children/grandchildren or a huge check to charity, Medicaid will subtract those amounts against what they will pay for your care.

Why does getting old have to be so complicated :(
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So true! Hope it will be ok.
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Before I give to those charities, I will also take advantage of the once a yr gift to my children. Is there anyway to take the house and when i sell, spread the gifts over several years to my kids instead of the govt?
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Thank you for your answer Maggie I accepted the gift of the home without even thinking about the tax consequences. The estate will be all mine and so whatever is there will be cut by the taxes I will have to pay....I guess. But, in the meantime, Cash payments or check payments for my work will be given to me monthly from now on. But,that increases my personal income. Oh gosh they get you no matter what. All annuities are being paid direct to me. The government gets you coming and going. Meanwhile, they all get rich. It is not a lot of money in their eyes, but it is my payment for years of caring for him. There are several charities that I could give to and therefore reduce what the Govt gets. That might make me sleep better.
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inheritance tax is paid by the estate, not the beneficiary. If there are annuities payable directly to you, there is most likely tax due on those, but it will be some portion of what you inherit. Any cash you receive directly from the person who left it to you generates no tax liability on your part.
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