my granddaugther who is disabiled a relative, passed and left her 10.000 dollars she says shes going to put it in a savings account, i told her i thought you have to turn it in to the social security office, is this true. and will she have to pay taxes on it. any knowledge of somethng like this.appericated.
2007-12-09 09:34:57 · 4 answers · asked by debbigeri 3 in Business & Finance ➔ Personal Finance
she is ok with ss and feds but i am not sure about her state income taxes!!!
2007-12-13 08:26:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Social Security doesn't regard an inheritance as "earned income" which is when they start pulling money away.
As to taxes, with $10,000 the feds aren't after her--the estate was taxed.
However, the STATE she lives in might have a law that allows for some amount of taxation.
If she's putting the funds in savings, should she have a tax to pay, she will have the funds to do it.
Frankly, savings accounts don't pay that well, so it would be nice if someone knowledgeable would help her out. If nothing else, put most of that inheritance into an account with a decent return. I think IndyMac is paying over 5% and ING is around 4+%, for example.
2007-12-09 17:46:19 · answer #2 · answered by heyteach 6 · 1⤊ 0⤋
If someone dies, and they have a will, they can specify where their money is to go.
If your granddaughter inherited 10,000 she can put it into savings. She may have to note it on her tax return, but I don't think that taxes will be due. She does not have to talk to social security if she is simply inheriting savings that your relative owned.
2007-12-09 17:40:49 · answer #3 · answered by hottotrot1_usa 7 · 2⤊ 0⤋
talk to her ssi worker,or accounted, tax attorney, she may have taxes to pay
2007-12-09 18:45:50 · answer #4 · answered by Curtis R 4 · 0⤊ 0⤋