Ask Experts Questions for FREE Help !
Ask
    IntheDark's Avatar
    IntheDark Posts: 1, Reputation: 1
    New Member
     
    #1

    Apr 17, 2007, 12:36 PM
    Federal Tax on inheritance
    If an elder person living on Social Security, who has not been filing a Federal Tax form for years, receives an inheritance of $ 30 - 40,000 is there any requirement to file a Federal Tax form? To show that income?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Apr 24, 2007, 09:00 AM
    Negative.

    Inherited money is NOT subject to income taxes UNLESS it is being distributed from a 401K or traditional IRA.

    Only taxes due would be estate taxes, which are paid by the estate, and then only if it exceeds the exemption minimum, which is currently in the $2 million range.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

General Tax Query related to Federal and State Tax and Filing Status. [ 3 Answers ]

I am a Married Indian resident. I had visited US in 2006 twice on H1B. I have never been to US earlier. Period of Visit: March 2006-April2006 approx 44 Days - Income from NY. Stayed in NJ August 2006 – Sept 2006 approx 32 Days. - Income from NJ. Stayed in NJ My company paid the salary...

Inheritance and Federal Income Taxes [ 1 Answers ]

I understand that Estates can be passed tax free to the heirs if their value is less than $2,000,000, and that if you inherit stocks and sell them you'd have to pay Capital Gains on the difference between the stepped-up value and the actual sale value, but do you also have to report the sale...

Inheritance Taxes: Federal and in GA [ 2 Answers ]

My father passed away earlier this year, leaving 3 children a sum of less than $500,000.00. Everything was probated and distribution made between his 3 children. Just wanting to know if I have to declare this money as income and are there any taxes that will need to be paid, federally or to the...

Federal or state taxes on inheritance money [ 6 Answers ]

:) Hi, My father recently passed away and left 50,000 dollars to shared by 4 of his children,The lump sum is to go to my brother and he is to distribute it equally,He say's about 33% has to go to federal and state taxes,We live in Ohio,can you tell me if that is true? :eek: Thanks so much...

Federal Wage information is missing in my W2. How can I pay my Federal tax? [ 5 Answers ]

Hi, Last year, I was working as F1 in OPT. As F1, I can exempt from society security tax and medicare tax. But the accounting company also exempted my Federal tax and told me that was the way to do it. I thought I could report my Federal tax later, so I let it go. But right now, I get my...


View more questions Search