I am low income and do not need to pay income tax. I am going to inherit $25,000 soon. How much of this will go to taxes?
Attorney answers (2)
Thuong-Tri Nguyen
Reputation Level 20
Answered over 2 years ago.
Family Law Attorney in Renton, WA.
Inheritances are not taxable incomes for the federal income tax. If the estate of the decedent is large enough, there may be an estate tax. However, the estate taxes should have been paid before the money is given to the beneficiaries.
Getting an inheritance or other sources of income, even if they are not taxable, may affect a person who receives public assistance, such as Supplemental Security Income (SSI), Temporary Assistance for Needy Families (TANF). Those programs have formulas to calculate how much assistance an applicant may receive. The formulas take into account a person's savings, inheritance, and other assets and incomes.
1 person marked this answer as good
Henry Daniel Lively
Reputation Level 20
Answered over 2 years ago.
Tax Lawyer in Costa Mesa, CA.
When you inherit property, the estate of the decedent pays the estate tax, if any. There is no income tax on the property you receive typically. You will owe income tax on the amount of income you make on the money after you receive it.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this posting provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this posting cannot be used to eliminate penalties with the IRS or any other governmental agency.
1 person marked this answer as good
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