I inherited 50K from my parents who died in 2019. What will I owe in taxes, if any on this money? Thanks.?
- AmyLv 75 months ago
The federal government and most states do not have an inheritance tax. The estate itself already paid any taxes before distributing inheritances to the heirs. However since you only inherited 50K, I doubt that the total value of the estate was big enough to incur any tax.
- JudyLv 75 months ago
If it was a deferred tax retirement plan like IRA or 401k you'll owe income tax at whtever your marginal rate is.
- curtisports2Lv 75 months ago
Possibly nothing. There are too many possibilities involved to say with absolute certainty that you will owe no tax.
There is no federal inheritance tax. Some states do tax inheritance, but generally do not when it is parent to child. I can't say this is true with every state.
However, the type of money involved can determine if there will be tax at the federal level. If the money was cash in the bank, no tax. If the money was in stocks or bonds, the cost basis to you of those assets is their value on the date the person giving it to you died. This is a tax break for you by not valuing those things at what they paid. When you sell those things, their value the day you sell may be more or less than on the day they became yours. You would owe tax on a gain and may be able to take a tax loss on a loss. The same thing applies to physical assets that you don't sell but hold onto, and valuables should be appraised so that you have hard evidence of their value at the time you acquired them.
But if you inherit money in an IRA or 401K account, the IRS wants their cut. This is not inheritance tax but deferred income tax, tax that was not paid on the contributions and earnings. If you take all of the money, that will be taxed as ordinary income to you. If this applies to you, I can give you a tip on how to minimize that tax.
- 5 months ago
Federally nothing, state likley nothing since from your parents.
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- Max HooplaLv 75 months ago
You will owe nothing on the inheritance.
- 5 months ago
- yLv 75 months ago
If it is straight up, nothing. If it is in some sort of investment, then depending on how one receives it will dictate taxes and such.
- Beach LifeLv 75 months ago
There is no federal inheritance tax. However there is a state tax on inheritance in Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. The rest of the states have no tax on that
- Anonymous5 months ago
Nothing. There is no tax on inheritance.
- FuhrLv 65 months ago
You will owe 51K in taxes.