Is inheritance money taxable?

Answer

TurboTax reports that as of tax year 2013, only eight states require beneficiaries to pay an inheritance tax: Iowa, Pennsylvania, Kentucky, Nebraska, Maryland, Indiana, Tennessee and New Jersey. For tax purposes, unless the inheritance, such as property or stocks, generates an income, the inheritance is not subject to income taxes.

According to HowStuffWorks, other taxes, such as estate taxes or capital gains taxes, may be levied against the decedent's estate before sums are distributed to beneficiaries. There are some exemptions to these taxes which may prevent the beneficiary from paying any tax on an inheritance. For example, About.com notes that for 2013, any estate that totals less than $5,250,000 is not subject to federal estate taxes.

Explore this Topic
Money that you inherit from a trust is taxable. Typically trusts are not taxed by estate taxes but are subject to income tax. The amount you are taxed depends ...
How much money you can earn before paying income taxes is around 8,000 US dollars. This depends on marital status, if there are children, and if there are special ...
One can not go to jail for not paying the taxes but one can be jailed for not filing the taxes. If one does not have money to pay for the taxes, you should always ...
About -  Privacy -  Careers -  Ask Blog -  Mobile -  Help -  Feedback  -  Sitemap  © 2014 Ask.com