Question

Inheritance from another state

Forum|Forum|2 years ago
June 28, 2023
2 replies
0 views

If inheritance money was received from a deceased grandparent in Maryland, but I live in Pennsylvania, is there an inheritance tax or does this need to be reported as income?

Ask the Experts - Energy - June 2023

JBedford

Hi, @Jhutchin ! You may find this TurboTax article helpful. To answer your question, inheritances are not considered income for federal tax purposes, whether you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source. Hope this helps, please let me know if this raises additional questions!

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

J

JhutchinAuthor

So it is not considered income, but what about an inheritance tax for PA state?

JBedford

Inheritance tax is not paid by the beneficiary, it would be paid by the estate of the decedent, if applicable. Hope this helps!

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

L

lramkumar

Inheritances are not considered income for federal tax purposes, if you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source.

Here is the link to a tax tool that IRS has for inheritance.

https://www.irs.gov/help/ita/is-the-inheritance-i-received-taxable