*Loan,banking and credit>>>inheritance tax

How much taxes will I have to pay on a $40,000 inheritance?

That depends upon the state where you live as well as the state of legal residence of the decedent.

There is no Federal tax on inheritance. There is an Estate Tax but that is paid by the estate. If the entire value of the estate is under $2 million, no Federal Estate Tax will be due.

The same general principal applies to State Estate Taxes, i.e. they are paid by the estate. A few states do have an Inheritance Tax but those are usually paid by the estate on your behalf. The executor of the estate can advise you of the status of any State Inheritance Tax payments that were made.

Edit: Extracted from the MI state tax site at http://www.michigan.gov/treasury/0,1607,...

"Note: Michigan's estate tax is equal to the maximum allowable federal state death tax credit. Because there is no state death tax credit for dates of death after December 31, 2004 and before January 1, 2011, there is also no Michigan estate tax for dates of death during this period. Estates of persons who die between December 31, 2004 and January 1, 2011 are not subject to a Michigan inheritance or estate tax. Therefore, no Estate Tax Forms need to be filed with the Michigan Department of Treasury."

Based upon this information, the entire $40,000 is yours fully tax free. Any income that you earn on the funds after you take possession will be fully taxable but that's a separate issue.

$11,200
It all depends on what state you live in and who pasted away!!
Depends upon if it was in a "trust." or just inherited.
If you do not want to pay "tax" on it. Invest the total into an IRA
account. Check with your accountant before cashing that
check and spending it, "please." It will then be "tax deferred."
And if you start adding 10% of your "gross" income into it.
You will have a nest egg for your retirement. Because by the
time you retire. there will be "no" social security left to fallback
on. This is not only for your future, but your childrens to go to
college on. Please do not waste this chance. It only "knocks"
once. ($_$) to you. From me. :-})
You will have to pay nothing on the inheritance. It is the estate of the person who died, who is responsible for any taxes.

Any tax owed will be based on the size of the "whole estate" and its the personal responsibility of the Executor, to gather up information on the assets of the estate and determine if an estate tax return and any estate taxes are due and owed. :-)

Your friendly neighborhood,

realtaxsurgeon
0, any taxes are paid by the estate not by you.
nothing, unless a house is involved, but there is no inheritance tax up to 2 million. If a house is involved, you only pay the difference between what the house was worth when the person died, and how much it is sold for, because if it is sold for more, then capital gains are involved, and you do have to pay tax on capital gains.....however you may have a state tax if there is an estate involved, but you only asked if there was an inheritance tax and on a federal level, you don't have to pay.