I recently recieved an inheritance, i live in georgia, and the money was from texas?

Question

is their any taxes involved, some of this is cash, some ira, and some cd's. all of these accounts I am listed as joint or pod.

Answer 1

When you die, the federal government taxes your estate and this is called an estate tax. It is completely different from an inheritance tax, which is imposed by some states. The state inheritance tax is called a death tax and it is imposed on money and property at the time of your death. This tax is typically levied against the heirs and is based on the amount of inheritance and the relationship to the deceased, called the decedent. The tax rate is usually a graduated rate.

Under the inheritance tax there are five types of allowable exemptions:
* Personal exemptions based on the relationship between the deceased and each heir;
* Specific amounts of exemptions allowed for the entire estate;
* Exemptions for taxes that have already been paid on the property;
* Exemptions for bequests of money to charities or educational institutions;
* Exemptions for specific types of property;

The most important one of these exemptions as they apply to beneficiaries is the one that is based on their relationship to the decedent. If the beneficiary is a distant relative or friend, then the tax rate is much higher than if he/she is a close family relative, such as a child, grandchild or sibling. Since each state has its own tax rate for inheritance taxes, there are differences in the exemption amounts. However, a typical exemption for a child would be the first $3,000 is tax-free and after that the tax is 7.5% on amounts exceeding $100,000. However, for distant relatives and friends the exemption is only $100 and the tax rate can range from 6% to 30% depending on the amount of the inheritance.

Georgia does not have a gift tax or an inheritance tax, but it does have an estate tax. The tax is an amount equal to the amount allowable as a credit for state death taxes under Section 2011 of the Internal Revenue Code. In effect, the estate taxes paid to Georgia may be used to reduce the estate taxes due IRS. The amount due may be determined by reference to the instructions for preparation of federal form 706. Georgia does not have a separate estate tax form. A duplicate of the United States Estate Tax Return (form 706) must be filed with Georgia when:
1. the decedent was a resident of Georgia, or the decedent was a nonresident and owned property located in Georgia.
2. If no estate tax return is required to be filed with Internal Revenue, no Georgia estate tax filing is required.

Generally, the duplicate of form 706 should be filed with Georgia on the date the original return is filed with IRS. Overdue and unpaid liabilities are subject to interest and penalties. Forms may be secured by contacting IRS.

Georgia estate tax (not fiduciary income tax):
Georgia Department of Revenue Estate Tax Section
P.O. Box 49432
Atlanta, GA 30359

Street address for courier delivery:
Georgia Department of Revenue
Estate Tax Section
1800 Century Center Blvd., N.E.
Suite 7100
Atlanta, GA 30345-3205

Texas does not have an estate tax or an inheritance tax of its own: http://www.willsandprobate.com/FAQ/inheritance-estate.htm

Answer 2

Georgia Inheritance Tax

Answer 3

Georgia Estate Tax

Answer 4

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RE:
I recently recieved an inheritance, i live in georgia, and the money was from texas?
is their any taxes involved, some of this is cash, some ira, and some cd's. all of these accounts I am listed as joint or pod.

Answer 5

In January you will receive 1099 forms showing what is taxable. That will be for the IRA and maybe some CD interest paid after date of death. Otherwise an inheritance itself is not taxable income.

Answer 6

The IRA will be taxable to you, but no 10% early withdrawal penalty will apply. The rest of it is not taxable.

Answer 7

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