I received an inheritance of around 5k and will need to pay taxes on it. How do I go about filing and what is the tax rate in TX
Inheritance tax should have been paid by the estate, and not you. Check with the attorney for the estate to make sure all of the taxes were paid.
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Generally, the beneficiary is not subject to inheritance tax if they receive the bequest from the estate. Also, you do not pay any income tax on this bequest. There are exceptions in certain cases, especially, if there is a tax allocation clause in the will. To make sure, consult with the attorney for the estate.
Hope this helps.
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Congrats on the inheritance. As a general rule, you need not pay taxes on money you receive by gift or inheritance. One exception to this rule occurs, however, when the executor of the estate charged with ensuring the estate has paid all its state and federal inheritance taxes.
You should be able to ask the executor of the estate whether the estate was "taxable." If the executor is unable to answer this question easily, you might consider engaging your own lawyer to confirm that all of the estate's taxes have been paid.
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