Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I received an inherited IRA 10 years ago and I'm being told…

Customer Question
I received an inherited...

I received an inherited IRA 10 years ago and I'm being told that I needed to have reported that to the state of PA and pay inheritance tax on it but my understanding is that taxes are only to be paid on the required minimum distributions that are taken each year

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

Its from my dad when he passed away 10 years ago

Submitted: 7 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 7 minutes by:
11/14/2017
Tax Professional: emc011075, Tax adviser replied 7 months ago
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,787
Experience: IRS licensed Enrolled Agent and tax instructor
Verified

Hi. My name is ***** ***** I will be happy to help you.

Inheritance tax and income tax are different taxes. Inheritance tax is paid on fair market value of the asset you inherit. This include fair market value of a house, boat, car, checking account or retirement account. There's no inheritance tax on federal level, but there are still handful of states with inheritance and/or estate tax. Unfortunately PA is one of them and it should have been reported 10 years ago.

When you take the minimum required distribution, the distribution will be included in your taxable income and subject to income tax at federal and maybe on state level as well, depending if you still live in PA or not. Currently PA does not tax any retirement income.

Ask Your Own Tax Question
Tax Professional: emc011075, Tax adviser replied 7 months ago

Any questions?

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
586 Satisfied Customers
Experience: 10 years experience

Wallstreet Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I inherited a traditional IRA and am I high income
I inherited a traditional IRA and am I high income professional. Do I need to convert this to something else since I earn above the limit for a traditional IRA?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
California Tax Question After inheriting a home in
California Tax QuestionAfter inheriting a home in California which is in escrow , due to close in 3 weeks are there separate inheritance taxes for California?And for federal is it really 40% taxes ?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
What is the percentage of tax is charged on inheritance
what is the percentage of tax is charged on inheritance money … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,392 satisfied customers
Are SREC's (Solar Renewable Energy Credits) taxable income?
are SREC's (Solar Renewable Energy Credits) taxable income? What if you have not yet finished payments on your solar panels? … read more
taxmanrog
taxmanrog
Master\u0027s Degree
973 satisfied customers
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I failed to take a mandatory inherited IRA distribution in
I failed to take a mandatory inherited IRA distribution in 2017, taking it on1-3-18. Do I report that I took the 1-3-18 money on my 2017 return or just include form 5329 with return? … read more
abci168
abci168
Principal
27 satisfied customers
Is military retirement income taxable in the state of
Is military retirement income taxable in the state of Hawaii . I asked this question before and was told that military retired pay was not taxable in Hawaii.what's your opinion?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My only taxable income is $2287.10 from IRA distribution. I
My only taxable income is $2287.10 from IRA distribution. I am rated 100% VA disabled. My social security and VA pension are non-taxable. I have no other reportable income. How do I determine if I owe… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Your website indicated state inheritance taxes are
Your website indicated state inheritance taxes are deductible on Form 1040 Schedule A. Can you provide documentation of this? … read more
abci168
abci168
Principal
27 satisfied customers
Inheritance - Valuation Question: Client inherits 50% of 2.5
Inheritance - Valuation Question: Client inherits 50% of 2.5 acre parcel previously used as rental activity. Client also inherits 50% of 40 acre. The other 50% owner of both is Client's father. The 2.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Required minimum distribution from an inherited IRA (income
required minimum distribution from an inherited IRA (income reported on 1099-R) Can a charitable gift prevent/offset the tax on the distribution?… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,047 satisfied customers
What are the irs tax es on inherited estates in the state of
What are the irs tax es on inherited estates in the state of Ohio? My question is If I sold a property I inherited and received a total of 275,000.00 for my share of the property would I be subject to… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,270 satisfied customers
I paid an PA state inheritance tax of $4200 (I live in OR).
I paid an PA state inheritance tax of $4200 (I live in OR). An article from 2010 stated that an inheritance tax can be claimed on the 1040 Federal form under "other taxes". It claimed it would only in… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Is inheritance money taxed as income? I'm retired a year.
I'm retired a year. Approx income 60k Was informed am likely to receive @ 250k as an inheritance. Coming from my dad who thankfully has not departed us but is passing this on now rather than later. … read more
Carter McBride
Carter McBride
LLM
1,152 satisfied customers
Box 7 has distribution code 4 on 1099R from a inherited
box 7 has distribution code 4 on 1099R from a inherited annuity does this mean it is fully taxable… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I just read your answer about federal/stae inheritance taxes
I just read your answer about federal/stae inheritance taxes and it confused me, I inherted assets from my aunt through a will. The executor informed me that I should not submit my federal tax until s… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
An estate distributed assets in a CA probate in 2017 and
An estate distributed assets in a CA probate in 2017 and paid fees to its lawyer and executor in 2018.In 2018 an ancillary probate will distribute assets in Florida. Given a presumably lower 2018 esta… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Is there federal tax on inheritance of $20,000? I am retired
I am retired and have social security and a small pension. My sister passed and left me about $20,000 last year. … read more
abci168
abci168
Principal
27 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x