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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I live in New York State and have inherited $25,000.00. How

Customer Question

I live in New York State and have inherited $25,000.00. How much in taxes will I have to pay?
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.
Hello bbunch,

NY has no state inheritance tax, so assuming that the person you inherited this money from was also a NY resident, then no inheritance tax would be due.

However, if this money is held inside of an IRA account or other tax deferred account, then you would owe regular income tax on the money once it was withdrawn from that account. If the money is held inside of a regular checking or savings account and has already been tax paid, then you will owe no taxes on this inheritance.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you bbunch.

Customer: replied 7 years ago.
Would there be any federal tax due on this, and would I have to claim this on my regular taxes?
Expert:  Merlo replied 7 years ago.
Hello again bbunch,

No, there will be no federal or state taxes due or any tax due at all, unless this money is part of an IRA account or some other tax deferred retirement account, such as a 401k plan. As long as the money is part of a regular bank account, there are no taxes due to anyone and you do not need to report this on your tax return.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you bbunch and let me know if you have more questions.