Certificate of Deposit

Question: Do I have to pay income tax on money I recieved as beneficiary on an annuity and on a Certificate Of Deposit?

Answer: The value of an inheritance or gift is not taxed to the recipient, but any earnings on the money would be taxed as ordinary income. The company paying the annuity would break down the income portion and return of investment portion generally, but if you inherited it you would need a CPA to help you determine the taxable amount.