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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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What is the NY State tax on an inheritance of $25,000 cash

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What is the NY State tax on an inheritance of $25,000 cash in 2011?
Hi and welcome to Just Answer!
New York state has no inheritance tax.
In additional inheritance is not included into taxable income for income tax purposes - so there is no need to report the fact of receiving inheritance on the tax return.
Only funds inherited from tax deferred accounts (such as 401k, IRA, etc) may be subject of income tax upon distribution.

However - estates - not beneficiaries - may be subject of NY estate taxes if the total estate value is above $1,000,000 - see more information here - http://www.tax.ny.gov/pit/estate/etidx.htm
The federal estate tax liability is for estates with total value above $5,000,000.

Thus if the total estate value is less than $1,000,000 - and you inherited $25,000 cash in 2011 - there is no tax due.
Let me know if you need any help or clarification.
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