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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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A sister left her brother her pension when she died. Does

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A sister left her brother her pension when she died. Does he have to pay taxes on this lump sum payment? He is 73.
Hello and thank you for using Just Answer. What type of a pension did she leave her brother?
Customer: replied 8 years ago.
It was a civil service pension. She was a clerk in Perth Amboy NJ.
Is the pension from the Federal Government or the State of New Jersey?
Customer: replied 8 years ago.
State of NJ
Customer: replied 8 years ago.
Approximately $75,000.00
He will have to report the amount he will receive on his 2008 tax return. The State of New Jersey will withhold 20% for Federal income tax.
Customer: replied 8 years ago.
Does he have any exemption?
No, when his sister made contributions to the pension fund the amount was tax deferral until she retired. The pension funds he is receiving will be tax to him the same as it would have been tax to his sister. He will receive a Form 1099 from the State of New Jersey and he should report the amount on his Federal income tax return.
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