Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I am a US Citizen living and working int he Uk for the last…

Customer Question
I am a US...

I am a US Citizen living and working int he Uk for the last 18 years. I am receiving a inheritance IRA from my mothers estate in the US. I've been told from her advisor that I need to set up a inheritance IRS in the US to transfer the funds into. I'm trying to understand my options.

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

Not sure the details the accountant would need to know.

Submitted: 1 month ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
3/20/2018
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 month ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 17,657
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Ask Your Own Tax Question
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 month ago

If you set up the inheritance IRA as suggested then you have more time to take the money out. This means you are not taxed yet on the IRA but when you withdraw. You will need to withdraw within 5 years time all the amount.

Your other option is take the distribution now, have tax withheld and then invest where you want.

Depending on your mother's age you may need to take out Required Minimum Distributions (RMD). Beneficiaries of inherited IRAs can choose to take distributions as an RMD over the course of their lifetime (what’s known as the life expectancy method), over a five-year period or as a lump sum.

Ask Your Own Tax Question
Customer reply replied 1 month ago
If i took a distribution now, Tax withheld would be at 30% or would it be at my current tax level?
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 month ago

You are not a foreign person so 30% is not required. As a US citizen you are not taxed higher just because you are outside the US. They would generally withhold 20%.

You will pay tax at your regular rate for US tax.

Please let me know if you need more information.
If not then please scroll up to see the STARS to rate so I am credited. Thank you in advance

Ask Your Own Tax Question
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 month ago

Just checking to see if you responded

Ask Your Own Tax Question
Was this answer helpful?
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 17,657
17,657 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. 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

4,451 satisfied customers

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

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

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

Robin D.

Robin D.

Senior Tax Advisor 4

17,657 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
In case of a foreign inheritance in equal parts to 4
In case of a foreign inheritance in equal parts to 4 children, in which the process takes till the following year to start releasing bank funds to the 4 children, is the year that Form 3520 and 8938 n… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,962 satisfied customers
How is inheritance tax calculated? Pa. None, I have not
None, I have not received my inheritance yet but it should be around $210,000 including real estate and life ins. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,082 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
I inherited approximately 140000 but I read it it below the
I inherited approximately 140000 but I read it it below the threshold of federal tax. I did withhold taxes on it when i received the money but did not speak to an attorney. Now I'm wondering if it was… read more
abci168
abci168
Principal
27 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
Trying to determine if New Jersey inheritance taxes paid by
Thanks. Trying to determine if New Jersey inheritance taxes paid by a trust are deductible on the Federal 1041 … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,962 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.
938 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
4,962 satisfied customers
My husband inherited a non-spouse IRA in the amount of
My husband inherited a non-spouse IRA in the amount of 550,000 from his sister. He is the sole beneficiary and her four adult children are the contingents. If he disclaims a portion of this IRA, will … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 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
983 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
17,657 satisfied customers
In regard to inherited property, does the beneficiary HAVE
In regard to inherited property, does the beneficiary HAVE to use the stepped up basis or can the decedent's basis be used instead? What if you cannot determine what the basis would have been at the t… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,962 satisfied customers
Are taxes payable on receipt of an inheritance from my
Are taxes payable on receipt of an inheritance from my Mother's estate? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
17,657 satisfied customers
Is US tax owed on a small foreign inheritance, My wife, a
My wife, a resident alien, received a small distribution from her father's estate last year in 2017. The funds were deposited and still are in a South African bank, The total is less than $15,000 … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,082 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
Tax Question. TX. Inherited $82k 401k. Decedent was not
Tax Question. TX. Inherited $82k 401k. Decedent was not retirement age.What is the tax implication if the $82k 401k is cashed by a 81yr old on $1550 Monthly SS as only income? What is the tax implicat… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Is inheritance income from Germany subject to US taxes?
Is inheritance income from Germany subject to US taxes? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,082 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