 Who must have a social security number? |
| do all employees --even Native Americans --need a social security number?... |
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 Whats the number for 911 ? |
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well....you know, i am a blonde...... |
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 Has anyone received their tax rebate into their accounts today? |
| Just curious as to how many people actually have received theirs. I checked our account today, and nothing. I know the ss 00-22 were supposed to be sent first, and ours is 18. Kind of dissappointed ... |
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| Can I file them seperately? I have 2005 forms? And what data do I need to add to the 2006 in regards to the 2005 return not being filed on time?... |
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 Do i get a bigger tax refund if i file single with one child? |
Additional Details
does it matter if i live with my parents still but they are filing separately?... |
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 Do I need to pay tax on this?? |
| I lost my job a few weeks ago but since have found a way to make £300- £400 on horse racing each week so obvously I wanna keep doing this I'm just worried now I'm going to get a big tax ... |
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 Should unmarried single parents be allowed to claim their kids on their taxes ? |
| I'm referring to people who have never married yet they keep having kids ! Seems unfair to me that a single responsible person hardly has any deductions yet parents who have never been married ... |
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| 2006 income is $6912.00 and is still claimed as dependent on parents ... |
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 If I didn't file my tax return last year or the year before....? |
| I live in Nevada and have not filed my taxes in a few years how far do i have to go back when i finally do get around to filing? I lost all my tax info due to unforseen cercumstances (Ex-boyfriend ... |
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 What can i do if someone claims my child for their tax's? |
| someone has claimed my daughter for the past two years and i want to find out who is doing this but the irs said that they cant tell me who did ... |
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 How do you plan on spending your federal rebate check? |
Additional Details
I'm going to Jamaica next week for a week for my 40th birthday so I think I'll save my rebate for a trip to Aruba next year for my 41st birthday!... |
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missy mae | Do you have to pay tax on inheritance? |
Do you have to pay income tax on inheritance under 50,000?
Additional Details
live in clorado is there a state tax it is part life insurence and part money from selling a house |
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Dave
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A wonderful mix of answers that have thoroughly mixed the estate and gift tax with the income tax question. Spicertax is right on the money. The inheritance you receive will not be subject to income tax unless it would have been income to the decedent. This includes some retirement accounts, annuity accounts and inherited installment sales. If you simply receive cash from the estate it is not income and is not reported on your income tax return. |
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spicertax
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No you do not pay income tax on inheritances regardless of amount - except for inherited IRA accounts and you may get a K-1 from the executor for any small income earned on the inheritance during probate. All of the other answers are wrong. They are confusing you with estate and gift tax rules that do not apply to your question about income tax. |
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dillon Y
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NO, the inheritance tax (Form 706) is paid by the estate not by the person that receives the funds from the estate. For example, Grampa dies with $8,000,000 and leaves everything to is grandson. Once the estate tax is paid (if any), the balance is paid over to the grandson.
There is an estate tax exemption of $2,000,000 in 2006, thus if your net worth (all your assets less what you owe) is less then this then you have no FEDERAL taxable estate (assuming you have not made exempt gifts in your lifetime). There may be an estate tax due by the state you live in and the state you own property in.
There is also an annual gift tax exclusion of $12,000 per year. Thus Grandma can give away $12,000 every year to each of her grandchildren and there will be no gift tax return required nor gift tax.
IF YOU HAVE CONCERNS: See a CPA/Tax Advisor |
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lalondejr_donald
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depends on wheather or not it was taxable to the person that you got it from
cash no you don't. property it depends on what kind of property it is. |
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Mike L
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You are well within the exemption for estate tax purposes. The estate has to be valued over a couple of million dollars to trigger death taxes. |
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LTCPA
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All of the above answers are wrong. You don't "income tax" on an inheritance, however if the deceased estate is large (over $2 million) for deaths after 1/1/06, then there might be an inheritance tax on the estate. The inheritance tax will be paid by the administrator/exectuor/executrix of the estate before any distributions are made to the beneficiaries.
Since you inherited $50,000 directly from a life insurance policy there is no tax to you. However, refer to the 1st paragraph....if your mother's estate was over $2,000,000 then there might be some inhertance tax, but that is paid by the estate, not you.
One exception to the "no income tax" rule for inheritances; YOu will pay income taxes on an inherited IRA when you make a withdrawal. THis is because the deceased did not pay income taxes on the IRA fund (this assumes a regular IRA, a Roth IRA is still no income tax)
A CPA since 1975 |
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STEVEN F
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There is no Federal tax on an inheritance. Federal Estate tax would not apply if the entire estate is under $50,000. Some states have inheritance taxes, but we need to know which state to comment on state taxes. |
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sjoschko
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Actually, no, the estate pays the tax if it exceeds the exemptions, not the person receiving the money. So if you receive 50,000, the estate has already paid all the taxes, and you do not have to report it as income or pay any income tax on it. |
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Cassie
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To my knowledge there is an exemption....it used to be 600,000 one could leave without being taxedas the recipient...twice that amount for a couple.........now the exemption laws are much kinder, but I'm not sure how it all works. |
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Slim Whitman
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It's best if the person gift their estate prior to their death.
Recent changes in tax code raised the ceiling and lowered tax rates when the estate is worth less then 10 million. This was done in order to protect family farms from losing their livelihood, as land is considered estate, and families often have to sell the
land in order to pay the death tax.
It is criminal what has happened to this country since the inception of the Income Tax in 1913..
wtih 50,000 you are likely in a 28% bracket.. Your best bet is to talk to an estate attorney and see what can be done to protect you from uncle sam..
Citizen's Against Government Waste
http://www.cagw.org
Restore Original Intent:
http://www.cafepress.com/originalintent/
Eliminate the IRS and implement a fair Tax
http://www.fairtax.org
Vote Libertarian
http://www.lp.org |
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marlee6996
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yes, although there is a small eception of you family being allowed to gift to you up to 10,000 dollars of money /merchendise per year before their death that is not taxable. Ie, you can have mom put your name on the back of an antique dresser you have always wanted as a gift and get it later. Sounds morbid, but it is a way around the system |
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[Shadow]
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Yuppers...
They did it to me..
darn government. |
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pondering_1
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Yes the goverment takes percentage of what you get from inheritence. stinks doesnt it? |
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