My taxes are gonna suck this year because I've inherited some money. What can I do to get some tax breaks?

Answer 1

4000 can go into an IRA and make sure to make a healthy donation to your church or favorite not for profit.

And if you aren't buying a house right now.... buy one and start deducting the interest payments.

Answer 2

Put money in an IRA, donate money, buy a house and write off the interest and taxes. I would check with an accountant or the trustee for the estate. The taxes may already have been paid in an inheritance.

Answer 3

Donate Money or Goods you no longer need. I believe the limit is $500. per year to someone like the Salvation Army. Join a local service club and your dues and supplies are tax deductible. (uniforms, pins, hates, vest, charitable travel)
If you inherited a lot of money I would suggest seeing and Accountant or Financial planner to find the best investment routes for you with Tax advantages.

Answer 4

I would check with an accountant right away. There are many items that are excluded from taxable income, and inheritances can fall under this category.

Also, don't forget to have them check the state rules as they can vary. It might cost you a couple bucks for the consultation and tax prep, but it will be well worth your time to figure this out.

Answer 5

YOU SHOULD NOT HAVE TO PAY TAXES!


The Alaska state constitution claims common heritage rights of ownership of oil and other minerals for the people of the state as a whole. Citizen dividend checks are distributed every year in Alaska out of the interest payments to an oil royalties deposit account called the Alaska Permanent Fund (APF) created in 1976 after oil was discovered on the North Slope. The APF is a public trust fund - a diversified stock, bond and real estate portfolio - into which are deposited the oil royalties received from the corporations which extract the oil from the lands of Alaska. The first citizen dividend check from the interest of the APF was issued in 1982 and was for $1000 per every person for everyone in Alaska who had resided in the state for at least one year. Annual citizen dividends have been issued every year since then, for a total of more than $23,000 per person.

In 2003, each of the nearly 600,000 Alaska US citizens (residents of Alaska for at least one year) received a check for $1,107 from the APF. The total amount dispersed was $663.2 million. The $25 billion investment fund's core experienced stock market losses which led to the dividend's decline this past year compared to the several previous years. The amount was $433 less, a 28 percent drop from the 2002 pay out of $1,540, and a 44 percent decrease from the all-time high of $1,964 in year 2000. The amount changes based on a five-year average of APF investment income derived from the bonds, stock dividends, real estate and other investments.

Alaska relies on oil for about 80 percent of its revenue and has no sales or income tax. Alaska state government is mandated to invest 25% of its oil revenue into the APF while the other 75% of oil royalty revenue is dispersed to other government funds to finance education, infrastructure and social services. If 100% of Alaska's oil royalties had been deposited into the APF, it is conceivable that the CD this year could have been about $4,400 or $17,600 for a family of four. But then there would have been no funds for roads, education and other public services and no funds available to run the state legislature - a libertarian dream fulfillment or a social and economic disaster, which one we will never know. If state services were to have been maintained while 100% of oil royalties were deposited in the APF, there would of course have been the need for income, sales and other taxes on wages and production.
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Answer 6

Are you sure that taxes weren't paid before u got it? Sometimes depending on where u live, it's not taxable until it's ove a million dollars. There were federal laws to abolish inheretance tax up and comming, not sure when, talk to a tax guy.

Answer 7

The person recieving the gift does not have to pay taxes. Gifts and inhertiances are not usually considered income. The person (or estate) giving the gift might have to pay taxes depending on how much their estate was worth and how much they gave away during their lifetime.

Answer 8

PUT SOME MONEY INTO AN IRA 4000 YOU CAN ALSO DO A CARRY FOWARD AND A CARRY BACK, YOU CAN AVERAGE A LUMP SUM PAYMENT OVER 7 YEARS 3 YEARS BACK 4 FORWARD YOU WILL NEED TO TALK TO AN ACCOUNTANT AND THE MONEY MIGHT NOT BE TAXABLE.

Answer 9

Inherited money isn't taxable, so your taxes should be the same as usual.

Answer 10

First be sure that you are claiming everything off of your taxes that is possible. These include donations to non profit organzations, churches, etc. Be sure if you work that you claim any expenses for that such as clothing, etc that is possible to claim. You would be surprised what all you can claim such as medical and dental expenses.