Hello orphan,
Can you please tell me if the money you inherited was part of an IRA account or other tax deferred account, or was this just money in a savings account or other tax paid account?
Hello again orphan,
There is no inheritance tax at the federal level, and there is also no inheritance tax in the state of NY. Instead of inheritance tax, the IRS imposes estate taxes, and those only apply to estates which exceed a certain value. That value is currently set at $3.5 million.
So as long as this money is not part of an IRA account or other tax deferred retirement account, you will owe no taxes on this money and are not even required to report this on a tax return.
If this was helpful please press the Accept button. Positive feedback is also much appreciated.
Thank you orphan
Accountant
25+ years tax consulting. Specializing in returns for US citizens living abroad