I just received some money from my mom's estate. She passed away almost 2 years ago. Will I have to pay taxes on the money I received and about how much if I do?...
2007-07-25 13:51:18 · 8 answers · asked by BigDaddySteven2006 5 in Business & Finance ➔ Taxes ➔ United States
there is an estate tax and how much you will have to pay is determined by how much you received and what state and county you live in. you may want to clear this with a tax lawyer in your area to better clarify this issue. by the way. i am sorry for your loss of your mother.
2007-07-25 14:17:51 · answer #1 · answered by barrbou214 6 · 0⤊ 1⤋
The previous references to estate tax do not affect you. It is clear from your question you are not the executor of the estate so you have no obligation for any taxes the estate pays.
You inherited the money two years ago. I am assuming this was not money inside of a retirement account.
The value of the money that you inherited will be tax-free to you. It is possible that you will also be taxed on the earnings of that money, or those taxes may be paid by the estate before the money is given to you.
If the money you receive includes taxable gains, they need to be reported on your tax return on Schedule D. The gains only will be taxed at a maximum rate of 15%.
2007-07-26 06:29:23 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Estate taxes are always paid by the estate. You will not pay taxes in the inheritance unless the estate failed to pay them. That can happen, but that is very unusual.
A few states do still have inheritance taxes but those are usually paid by the estate on your behalf. The executor of the estate can advise you on that.
Any income earned from the inheritance after you receive it IS fully taxable to you. Additionally, certain tax-deferred items such as an IRA are taxable when you withdraw the funds since they were not previously taxed. A recent change in the law allows anyone who receives an IRA through inheritance to roll it over into another IRA without paying tax on the rollover amount. Previously that was only available to a spouse.
2007-07-25 21:50:46 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 0⤋
I am assuming you are not the executor of the estate. You should ask this question to the executor, since you haven't given enough information to really answer it.
Generally:
The first $2 million of an estate is not subject to estate tax, but there is still income tax.
Interest, dividends, capital gains, etc. are subject to income tax which is either paid by the estate, or reported to you by the executor on form K-1. If paid by the estate, your money is not taxable, if paid from principal, it is not taxable. If reported to you, then interest will be at the same rate as your other income, and dividends and gains at your regular rate or less.
2007-07-25 16:31:42 · answer #4 · answered by BruceN 7 · 1⤊ 0⤋
First of all I am sorry for you loss.
Call IRS Tax Law at 1-800-829-1040, and ask them, they will be able to provide information and maybe even let you know about how much you will or if you won't owe.
2007-07-25 14:00:12 · answer #5 · answered by Ms. Angel.. 7 · 0⤊ 0⤋
I also have two jobs and unfortunately you have to pay 22% tax on your second income. so £ 668/22=£146.96. I don't understand why you only paid £165. on the first job. over what period of time did you earn £6530.
2016-05-18 21:06:53 · answer #6 · answered by ? 3 · 0⤊ 0⤋
Every state is different, especially when it comes to taxes. In all probability your inheritance is not taxable but check with an attorney or tax consultant.
2007-07-25 13:56:31 · answer #7 · answered by Sunshine 6 · 0⤊ 0⤋
Unless it was a hell of a lot of money, there are no taxes due. Am going through the same thing myself.
2007-07-25 13:56:05 · answer #8 · answered by WJVV 4 · 0⤊ 2⤋