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MGFedorko
New Member

IRA inheritance

I inherited an IRA from my mother and elected to take a lump sum payout. I live in Missouri, she lived and died in Pennsylvania. How do I plan for state tax on the payout?
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2 Replies

IRA inheritance

You only pay taxes in the state where you live when you got the distribution. Have withholding for that state or increase your withholding somewhere else like a job or make an estimated payment. 

Hal_Al
Level 15

IRA inheritance

You will only pay tax to your home state of MO.  That is not considered "PA source income". You do not need to file a PA return, because of the IRA distribution. 

 

By contrast, if you inherited her home and sold it, for a profit, that sale would be PA source income; because the ''asset'' is physically located in PA.

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