I was beneficiary of my fathers checking & savings account. He died in April. Do i have to pay taxes on money?

Question

$ less than $15,00

Answer 1

There is no United States Federal Inheritance tax. You would owe income tax if you inherited "qualified" or "pre-tax" money from things such as IRAs, but regular checking and savings is post-tax money. Any interest the account made from the time of death until the time you obtained the funds may trigger a 1041 estate tax return, but only if they were substantial. It is unlikely $15,000 would generate such an amount. Besides, it is not your responsibility to determine such things...it is the responsibility of the person handling the estate. My condolences on your father.

Answer 2

States also tax estates and the state laws vary, but I can tell you what the federal laws are.

Under federal law the estate pays the taxes and not the surviving party. Also, if he died this year there will be no federal estate taxes as long as the estate was less than $2 million. The exemption varies from year to year but in recent years has been $1 million or higher.

Answer 3

15000 in general is way below the federal threshold and same for most states
As a beneficiary however you may have to obtain court papers giving you permission to close the account.
In NY state you used to have to file certain forms if the accounts were over 30000 which acted as a guarantee to the state that you will report the money, if together with any other accounts, its taxable.

Answer 4

you probably don't generate any interest on your checking account whereas the savings account generates some which could make your account work better for you

Answer 5

If you are in the USA then no, you don't, unless any of the money you received was interest after the date of his death.

Answer 6

inheritance tax

Answer 7

Put it in an annuity fund...............