Is inheritance from great grandmother taxable?

Great grandmother left me $10,000; so is that a taxable inheritance? Someone told me it's not b/c i'm a direct decendant.

Is inheritance from great grandmother taxable?
Inheritances are never taxable to the person who receives them. Any taxes would have been paid by the estate before the inheritor recieves the inheritance. The only state that I am aware of that taxes an inheritance is Pennsylvania. The only other way that the $10,000 would be taxable was if it was a regular IRA. In that case you would have to take distributions of it over time, and the distributions would be taxable to you. But if it's $10,000 in cash that you received, then only if you lived in Pennsylvania would the inheritance be taxable to you on the state income tax.
Reply:TFBA Report It

Reply:At the federal level, probably not, but it depends on the total size of her estate. If it's over $2 million, there would be federal tax, but the estate would pay it.





At the state level, depends on where you live.
Reply:Any thing you receive as gift or inherit, you don't pay any taxes on it. So this is non taxable income.