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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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Do you have to report funds received as a result the death

Customer Question

Do you have to report funds received as a result the death of a friend through his will?
Submitted: 8 years ago.
Category: Tax
Expert:  Ed Johnson replied 8 years ago.

DearCustomer

 

The U.S. federal government has no inheritance tax. So any inheritance of cash are not taxed by the IRS. However you state may have an inheritance tax. If you allow me to have your state I can address that as well.

Ed Johnson and other Tax Specialists are ready to help you
Customer: replied 8 years ago.
STATE OF NEW JERSEY
Expert:  Ed Johnson replied 8 years ago.

DearCustomer

 

Your additonal information showed up after I posted my answer.

 

NJ has an inheritance tax, so you will have to report this income on your state return.

 

Note: my response assumes your inheritance form the friend is cash, and not a cash equivalent such as an investment account, IRA, or annuity, etc.