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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?
2 Replies
Critter
Level 15

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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