Inheritance from another state

Hi, @Jhutchin ! You may find this TurboTax article helpful. To answer your question, inheritances are not considered income for federal tax purposes, whether you inherit cash, investments or property.  However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source. Hope this helps, please let me know if this raises additional questions! 

Inheritances are not considered income for federal tax purposes, if you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source. 

Here is the link to a tax tool that IRS has for inheritance. 

https://www.irs.gov/help/ita/is-the-inheritance-i-received-taxable

So it is not considered income, but what about an inheritance tax for PA state?

Inheritance tax is not paid by the beneficiary, it would be paid by the estate of the decedent, if applicable. Hope this helps!