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Level 2
posted Jun 28, 2023 2:26:12 PM

Inheritance

Forgot to ask. Do I report it on my state? I’m in California. It’s a cash inheritance 

0 2 597
2 Replies
Employee Tax Expert
Jun 28, 2023 2:29:17 PM

Hi @robbrewer12 !

 

In California, there is no state-level estate or inheritance tax. If you are a California resident, you do not need to worry about paying an inheritance tax on the money you inherit from a deceased individual.   If the inheritance produces income, there may be a tax obligation.  Here is a good reference:

 

https://www.ftb.ca.gov/file/personal/income-types/gifts-and-inheritance.html

 

Hope this helps!

Cindy

Level 3
Jun 28, 2023 2:32:38 PM

California Has no state  Level inheritance tax but  if the inheritance is invested and produces income this would be taxable for state and federal tax in the year the income is receivec.