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    marylandgirl's Avatar
    marylandgirl Posts: 1, Reputation: 1
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    #1

    Dec 14, 2006, 06:03 PM
    Inheritance
    I have just received a cash inheritance of $49,900. The inheritance tax was already paid prior to the distribution. I can't seem to get an answer as to whether I have to pay both Federal tax and Maryland State tax. I was also told to hold 1/3 back for state tax in MD. Can anyone clarify for me if I have to pay both Federal and Maryland state sales tax? Seems to be a lot of taxing on a small amount. Thanks for any help
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Dec 14, 2006, 07:35 PM
    You may wish to ask this question again in the TAX area, we have a great expert on here called Atlanta Tax Expert, who will have the right answer I am sure.

    All the best advice I can give is go see a tax attorney, I thought it was not taxable, but I am no expert in it.

    But a tax attorney would not charge much for some advice and then you know for sure.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Dec 15, 2006, 06:03 PM
    No need to see a tax attorney. For that amount of money, NO federal or state income taxes are due.

    The only taxes that MAY be due are federal estate taxes and state inheritance taxes, which are paid by the estate, NOT the heir.

    Pay down your bills, go have a little fun with some of the money, then invest the rest. If you need some general advice on these issues, contact me at [email protected].
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