QUESTION
What taxes do I have to pay or file on inheritance money?
Asked on Jul 19th, 2013 on Taxation - Michigan
More details to this question:
My granddad passed away in 2011 in Maryland. His home was worth less then $80,000 and I have received less then $15,000. It has already been through the courts and the checks have been issued. I need to know whether I have to pay or file. I haven't worked since 2006 and had no earned income since then.
4 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You do not pay any federal estate or inheritance tax on money you inherit. You will have to talk to a Maryland licensed attorney to find out about Maryland taxes.
Answered on Jul 24th, 2013 at 1:05 AM
Elder Law Attorney serving Hollister, CA
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Charles R. Perry
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Money received as an inheritance is not subject to federal or state income tax. You should have no tax liability on the money you received from your grandfather's estate.
Answered on Jul 22nd, 2013 at 9:16 AM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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Maryland has inheritance tax but it may be exempt for grandchildren. You would need to check with the Maryland Division of Revenue.
Answered on Jul 22nd, 2013 at 8:36 AM
Inherited money is not taxable income, so there will be no income taxes to pay (unless the estate earned income during administration). There might be Maryland inheritance tax (I don't know about that).
Answered on Jul 22nd, 2013 at 8:24 AM