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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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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.
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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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