Hi,
I am so confused with misinformation I hope you can help. I am a resident alien living in the US (in Colorado) and have been here for 23 years. My mother, who lived in England, died recently and her estate is being divided between me and my brother. Our share of inheritance tax has been taken care of over there but will I have to pay additional tax here in the US? The amount I should be receiving is about $200k-$230k (dollars). Do they classify it as "worldwide" income or give you a break to avoid double-taxation? sgodphoto

Sgodphoto:

If estate taxes were paid in England, then you are free and clear.

Even if the $250K was subject to estate taxes, the first $1.5M of an estate is exempt from estate taxes. State death taxes tend to mirror that exemption.

There are no other taxes due on an inheritance. However, I suggest that you have documentation available to account for the money, as the bank will report the appearance of such a sum of money to the IRS and the state tax authorities. They will want to know from where you got it.