Thousands of verified Experts are ready to answer your specific questions 24/7.
Satisfaction is guaranteed and you pay your Expert only if you are satisfied.
Just type your detailed question and click "Get an Answer."
In minutes you'll get a response from an Expert. You can always ask follow-up questions.
Happy with your answer? Just click "Accept" to pay your Expert.
I live in California, and my Mother lived in California at the time of her death, she left me $50,000 and I would like to know how much I will have to pay in state and fed taxes.
There is no inheritance tax neither on the federal level nor in California.
Federal estate tax applies only to estates with total value above $3,500,000 (for decedent died in 2009).
California doesn't have estate taxes.
Inheritance is your income, but not taxable income. Please see IRS publication 525 page 33 for reference - http://www.irs.gov/pub/irs-pdf/p525.pdf
So - you do not need to claim it on your tax return and do not owe any taxes regardless or the amount.
The only situation you might owe income tax - if that amount was in tax deferred account - such as IRA or pension plan. In this case the distributed amount should be included into your taxable income and you should receive a reporting form 1099-R.
In all other situations - you will not owe any taxes.
Let me know if you need any help.
Tax Advisor
Taxes, Immigration, Labor Relations