what is the tax on 50,000 in CDs inheritance?

Answer 1

No estate tax is due for an estate under 2 million. If the 50,000 was a specific bequest it is income tax free. If it is part of the estate residue a small portion may be post death income - ask the executor for a Form 1041 Schedule K-1. If it came from an IRA it is all income taxable and you will get a 1099-R.

Answer 2

This is very simple, if you are the beneficiary of this money or were awarded it via probate, and assuming the decedent's estate paid all applicable taxes prior to you receiving it (such as on any interest that the account earned during the current tax year up through the point of death), you have no tax obligation unless the account was an IRA.

If the account you are receiving is an IRA account, then you will be taxed at a dollar-for dollar basis on the entire amount as if it were ordinary income. The tax level will be based on the total of your annual income plus the entire amount of the IRA account.

Answer 3

I think this is a question for a CPA. Too many unknowns to give a simple answer. Personally, my gut tells me that there is no inheritance tax, but maybe that's only on property under a couple million. If you are the recipient, be grateful for the gift, enjoy the money, but pay the taxes with a joyful spirit if that's how it turns out. Don't take anyone's advice on this issue except someone who is a professional. And for sure be very cautious with whom you deal..

Answer 4

There is no federal tax on an inheritance. If the total estate was large (much larger than $50,000), there could be taxes to be paid by the estate. If you inherit the 50000, you pay no federal tax on that.

Answer 5

Insufficient info . . .
Depends on your other income, filing status, deductions etc.
Anyone giving a number without the rest of the equation is faking it.

Answer 6

find yourself an acct. or ask the institution where you purchased it.

Answer 7

Thought they did away with inheritance tax dunno.