I received an inheritance from my grandma in Florida, I live in New York.Do I have to claim it on my taxes?

Answer 1

There is no Federal inheritance tax, nor are there state inheritance taxes in NY or FL. Nothing to report, and no tax to pay.

There is one exception, though. If you received a tax deferred account such as a traditional IRA you would pay tax on the funds as you withdraw them from the account. That's because the money was not taxed going in so it must be taxed going out. But if you were given a check by the executor of the estate, it's tax free to you.

Note to Mahal: Get a CLUE, buddy! A 1041 is a Trust return and is NOT filed in lieu of the final 1040 return of the decedent. The executor of the estate will file a final 1040 if the decedent had enough income in the year of their death to be required to file. And there are NO Federal inheritance taxes in the US. You're confusing the Estate Tax with inheritance taxes. And there are NO state inheritance taxes in either NY or FL, the only states that could levy one given the facts presented.

And please go back and read what I posted. I did NOT say that there is no Federal inheritance tax in NY. I did say that there are no inheritance taxes, PERIOD!

Answer 2

It depends on how much the estate was worth. This is usually the total amount found by the probate court. If you didn't go through probate, you can figure it out for yourself (total value minus everything you paid to settle the estate, including funeral costs = estate value to those inheriting).

From 2006 to 2008, the only estates taxed by the fed or states are those worth more than $3.5 million. If her estate was less than that, you don't even have to file.

However, you do have to file a 1041, which is nothing more than your grandmother's final 1040, and the tax due or tax refund will go directly to the estate. This is usually done by the time probate closes.

State laws usually mimic federal tax laws. So you only need to figure out what state your grandmother was a resident in, and if the fed has no estate tax, make sure that state has none, either. The state that she lived in is the important one, not the one you live in. When an estate is taxed, it's taxed per the wealth transfer laws, and it's your grandmother doing the transfering, not you.

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I have no idea why Bostonian is telling you that there's no federal inheritance tax in New York. Current laws are based on changes made in 2001 that expire in 2010. Federal inheritance apply everywhere, states are the only taxes that vary.

Even if you have no state tax, you might still end up paying federal.

Answer 3

yes you do,and youll have to pay inheritance tax.

Answer 4

No. It is not taxable income.