inheritance tax

[Dcal1963]

Jurisdiction

Iowa

My wife recently inherited some money from her father. He lived in Iowa and we live in Georgia. I am trying to figure out if we will be charged any taxes on this money?. No property is involved.

 

[army judge]

My wife recently inherited some money from her father. He lived in Iowa and we live in Georgia. I am trying to figure out if we will be charged any taxes on this money?. No property is involved.

It depends, you're best served to ask a CPA for specific tax advice. Generally, inheritance is taxable in many states at 50%, which causes many people to reconsider, because it isn't just the tax on the inheritance, it what it does to your overall tax picture.

 

[adjusterjack]

My wife recently inherited some money from her father. He lived in Iowa and we live in Georgia. I am trying to figure out if we will be charged any taxes on this money?. No property is involved.

Recipients of an inheritance generally don't pay taxes on the money (occasional exceptions) the estate does.

At the federal level the estate tax exemption is over $5,000,000 so there would be no federal tax on the estate unless the estate was worth a lot more than the $5,000,000.

Georgia does not have an inheritance or estate tax:

Estate Tax | Department of Revenue

Iowa does have an inheritance tax that has to be paid by the beneficiary on the beneficiary's share but the children of the deceased are exempt from the tax:

An Introduction to Iowa Inheritance Tax | Iowa Department of Revenue

Therefore, it does appear that her inheritance is not taxable or reportable at the federal or state level.

But do get that confirmed by a tax pro just to make sure.