If you have recently inherited someone’s estate, then you may have some concerns about how much you will owe. Most individuals do not need to be too concerned with having to pay estate taxes.
You will not be required to pay estate taxes unless the total value of the estate exceeds $2,000,000.00. You will need to check with your state to see what limits apply within your area. The total estate value will be based on the total amount of the following inherited items:
All other assets
A tax calculator can be a very helpful tool in figuring out any inheritance tax liability. You will want to make sure to enter all earned income as well as any other inherited income such as cash and values of assets. If you know up front how much you may be responsible for, this can help you prepare for your tax bill each year. You are able to adjust your federal withholdings based on the amounts you enter in to the tax calculator.
Using a tax calculator can help you plan for the future. You can prepare yourself for your tax liability at the end of the year and may be able to make some adjustments to reduce the amount you owe. If you have received an inheritance that you may need to pay taxes on, it is important to find out if you need to file both a federal return and a state return on the inheritance.
TurboTax Online offers free tax calculators and tax articles to help you with inheritance tax planning. Please visit TurboTax Online and give one of their tax calculators a try!