This estate tax only applies to estate properties that are over one million fifty thousand dollars. The federal government is still likely to tax an estate even if all or a portion of the estate is being handed down to other family members. Instead of imposing an estate tax in this situation, there many states that impose an inheritance tax.
An inheritance tax is also commonly referred to as a death tax because it is a tax that is imposed on all estate money and property after an estate owner passes away and leaves their estate or a portion of their estate to another person. States that currently collect a tax on inherited estate money or property are Connecticut, Maryland, Massachusetts, New Jersey, Nebraska, Pennsylvania, Oregon, New York, Indiana, Kansas, Louisiana, Kentucky, and Iowa. Since each state is likely to tax their residents differently, individuals need to research the inheritance tax laws in their state or hire the services of a professional tax attorney. There are also many state governments who regularly update their inheritance tax guidelines, and many states are even considering completely dropping the inheritance tax. This is why it is important for taxpayers or their tax attorneys to keep up-to-date on the latest inheritance tax information.
When the federal government imposes an estate tax the amount of taxes owed generally comes from some of the estate money left behind or the sale of estate property. The state taxing process of money or property that was inherited is a little bit different. States that have an inheritance tax require that the individual who receives the inheritance file and pay any taxes due on the money or property they inherited. This money does not come directly from an estate because it comes from the individual who received the inheritance. http://www.taxhelpdirectory.com/federaltax/
Article to continue below----------------------------------------------
U.S. Sales Tax Rates Hit Record High (Forbes)
Shopping blues: Top tax 12%. Chicago's 10.25% highest big-city rate. More Internet tax fights loom.
NARUC Asks For Clarification On Broadband Grant Tax Status (Broadcasting And Cable)
Association says money should be tax...
---------------------------------------------------------------------------
As previously mentioned, different states have different rules, guidelines, and restrictions surrounding an inheritance tax; however, there are several common circumstances that many states all consider. When an individual who has passed on leaves money or property to a close family member, the inheritance tax is likely to be lower than if the property was given to a friend or distant family member. Most states consider a close family member a mother, father, brother, sister, daughter, son, or spouse.
Individuals who are required to report an inheritance and pay a tax on it are required to fill out the necessary state forms. These forms can be obtained by contacting one of the state taxation offices. The phone numbers for these state offices can generally be found by doing an Internet search or by using the contact information from your last state tax return. It is also possible that the inheritance tax forms can be downloaded from the Internet. The majority of states that impose an inheritance tax have a tax website that may have a downloadable copy of the forms that can be printed, completed, and mailed in.
As with estate taxes and traditional state income taxes, there are a number of inheritance tax deductions that can lower the amount of tax money that an individual may owe on their inheritance. To determine these deductions individuals preparing their own inheritance gift tax forms are encouraged to fully read the form instruction booklet to determine what these exemptions are and if they qualify for them.
Gray Rollins is a featured writer for the TaxHelpDirectory.com. To learn more about the inheritance tax, and estate taxes, please visit our site.
What Other Authors say about Taxes
About That Tax Rebate Check...
by Carl LaFresnaye
You're getting a tax rebate check! Lucky you! I'm sure you're already planning how to spend it – who wouldn't? There are plenty of ways to spend it – and a lot of things you can do in the meantime, while...
Income Tax Season
by Tony Robinson
The tax season for most all individual tax payers falls during January, February, and March each year. It's the time of year that most citizens look forward to receiving a refund or they dread because...
Getting The Biggest Benefit From Tax Help
by Stephen Kreutzer
Taxes are a way of American life. They are own duty to pay and file. Many people go in search of someone to help them when tax time rolls around. Tax help seems to be in abundance from January 1st to April...
how to compute tax withholding amount
by Steven Chang
Having the correct tax withheld for the year is important for a couple of reasons. Having too little taxes withheld and most likely you will need to pay taxes, and having too much withheld means that you...
Understanding Basic Tax Terms
by Ryan Fyfe
If your like many, you don't always understand what people are talking about when it comes to Taxes. It's important to know the main tax terminology, especially when tax season comes around. Knowing the...
How to Use an Early Retirement Plan to Secure Your Future
by Scott Taylor
<p>In fact many of these people had no intention of retiring and used these generous packages to move into second careers. They did not retire at all until much later, in their sixties. Nowadays,...
Finding Free Printable Tax Forms
by Carl LaFresnaye
If an individual decides to do his own taxes, there are many different avenues where he can find free printable tax forms for his use. There are websites that provide these forms to individuals at no...
RETIREMENT TAX HAVENS
by Ken Morris
RETIREMENT TAX HAVENSFinancial planning is really life planning. Choosing a home, particularly a retirement home, involves many factors. With state and local taxes on the rise, retirees should look closely...
Social Security Tax
by Hans Hasselfors
You should be able to find several indispensable facts about social security tax in the following paragraphs. If there's at least one fact you didn't know before, imagine the difference it might make....
Taxes and Bankruptcy: The Nuts and Bolts
by Richard K. Gustafson, II
Taxes and Bankruptcy: The Nuts and BoltsThe filing and subsequent discharge of either a Chapter 7 or a Chapter 13 bankruptcy may eliminate some types of personal income tax liability. There are, however,...
Options For Filing And Reporting Small Business Taxes
by Gary Ruplinger
Large and small businesses all around the United States are required to file and pay taxes. Small business taxes are applied and determined differently than those of larger corporations. To accurately...
Top 7 Ways to Reduce Income Taxes
by Kristine McKinley
Are you paying too much in income taxes? Are you getting all the credits and deductions you are entitled to? Here are 7 tips to help you minimize taxes and keep more in your pocket:1. Participate in company...
Solving Common Tax-Preparation Problems
by Stephen L. Nelson
There are some potential pitfalls to using your Quicken data as the one and only source of all your taxable income and tax-deductible expense information. This doesn't mean you shouldn't use Quicken; it...
Who are the CPA Moms? Your Tax Professional Forever!!!!
|
“CPA Moms - Tax Moms - EA Moms" are trade names given to Accounting and Tax Professionals who chose to work in an “relaxed” environment. Some "Moms" work from home, other work from personal offices. Not all are Moms, there are some Dads. We call them Mr. Tax Moms. CPA Dads or Enrolled Agents Dads.
|
Each Mom is independent. Once a client starts working with a Mom, the client will keep the same “Mom” year after year regardless of where the client moves or relocates. Being in a “relaxed” environment has many advantages. Lower overhead, faster response time, more availability, etc.
|
|
|
To be a member a CPA Mom, Tax Moms, or an Erolled Moms the Tax Professional must ALWAYS be in good standing with their state licensing agency, experienced, and must demonstrate a high level of ethics, professionalism and proficiency.
|
Tax Net Inc, the parent company for all CPA Moms, Tax Moms and Enrolled Moms, developed the marketing and on-line systems to help qualified Tax Professionals who "choose" work from their “relaxed” environment and offer better service at a lower price to the consumer.
|
|
|
Since the “Moms” do taxes and accounting of all complexities, there is always a Mom available for every level of work. Since each Mom has a private 800 number, you are just a phone call away, regardless of where you live.
|
For reliability and dependability of Tax Net, Inc, the parent company of the “Moms” organization click on the Better Business Bureau (BBB) icon. To Join CPA Moms
|
|