Maryland Inheritance

Forum|Forum|5 years ago
March 27, 2021
5 replies
40 views

How do I report inheritance on my Maryland Resident Income Tax Return?

SweetieJean

Alumni - Champ

What type of inheritance (cash, property, a retirement plan?) Did you receive a 1099-R for it?

Estate/inheritance taxes (which TT does not support) are handled separately from income taxes. See:

Estate and Inheritance Tax (marylandtaxes.gov)

boeing 17

Level 2

In 2021, We received bill from State of maryland that needed to be paid in 30 days from inheritance tax due for total amount of 2 investment accounts inherited by my husband from his Cousin, Rebecca Ann Watt who died in 2019. We paid $14,300 to the State of Maryland and have not received any tax form related to this.

Is there anything that we can deduct from our income related to this large expense? Thanks for your help!

Ruth Medlock

JotikaT2

Employee Tax Expert

It depends upon what you are trying to do.

Typically, the inheritance tax is paid by the estate on Form MET 1, Maryland Estate Tax Return. Any tax due would be paid when filing this tax return.

Maryland estate tax filing requirements

If you need to file a trust tax return, you would file that on Form 504, Fiduciary Income Tax Return, to report any income while the estate is being processed but before any distributions have been made to heirs.

Maryland Fiduciary Filing information

If you are trying to prepare your own tax return, you would only need to report any income as earned once the assets have transferred to you. You essentially only pay taxes on any income generated from the assets after they are transferred to you.

If you have a more specific question, please comment so we can assist you.

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