June 19, 2019 8:00 AM
last updated June 19, 2019 8:00 AM
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?
June 19, 2019 2:25 PM
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.
June 22, 2019 8:11 AM
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.
Found what you need?Start my taxes
Already have an account? Sign In(4.6/5 | 291,310 reviews)
Still have questions?
Make a post
Or browse the Forums