Inheritance from another state
I had received a small inheritance from my brother, who lived in Ohio. I live in PA. It was probated, since he wasn't married, no kids and I am his only surviving relative. How do I file this on my taxes?
Answers
-
What did you inherit? Most inheritances are not taxable for Federal income tax purposes. The exceptions would be retirement accounts like a traditional IRA or 401(k). If you inherited something like a house, you get a stepped-up basis on property, so if you sell it within a short time after the owner's death, there probably wouldn't be any taxable gain.) Was a trust set up and will the distribution be coming from the trust? If so, you'll receive a Form 1041 Schedule K-1 with your share of the taxable distribution; it will tell you how to report any taxes on your 1040.
I don't know anything about your state's taxes; some do have inheritance taxes.
-
Hello,
First, I am sorry for your loss.
As JMSSGV mentioned, typically, cash received as an inheritance is not included in your income. The IRS has a helpful interactive tool that you can use to determine if your inheritance, in whatever format received, is taxable. You may find the interactive tool at:
-
I received his life insurance. There was no other property or anything.
-
Thank you. I appreciate it very much. I'll check the tool.
-
It had to be probate in an estate account, through a lawyer, due to him having our deceased mother as his beneficiary.
