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Level 2
March 27, 2026
Solved

Inheritance tax on joint accounts

  • March 27, 2026
  • 2 replies
  • 267 views

I’m claiming my mother as a dependent and filing as head of household as I have the last few years.  She passed away in 2025 but I’ve confirmed I can still claim her as dependent on my 2025 taxes.   I have a question about inheritance tax.

She didn’t have a will and had 2 assets.  A checking account containing about $23,000 at the time of death.  In addition to her name, my name was also on the account.   I never contributed to it nor did I take money out for myself.  But my name was listed on the account.  My name was actually listed first.  Do I have to pay an inheritance tax due to me ‘inheriting’ her half?   For Turbo Tax purposes, would this be categorized as an inheritance? 

Similarly, she also had about $2,600 in a credit union account.  My name was also listed on this account.   I’m assuming I also need to claim her half of this as an inheritance.  I did receive a letter after her death from the PA Dept. of Revenue (Pennsylvania is where my mother and I resided) indicating that the credit union notified PA that since I was a joint owner of my mom’s account, I had to pay PA a 4.5% tax on half the amount.  I’ve since sent PA a check and paid that tax. Interestingly, I never received any notification from the Federal Government about this.  I would think since the credit union notified the PA Dept of Revenue, they would have notified the Federal Government too.  I assume I still need to list this as an inheritance on the Federal return.  Is that true?

Best answer by NCperson

@ThomasM125 

 

What you quote is the federal "estate tax" which is paid by the estate and not the beneficiaries.  It is not an inheritance tax.  The federal government does not have "inheritance tax"

 

Some states do indeed have an 'inheritance' tax, but that is paid by the beneficiaries and not the estate. 

2 replies

M-MTax
Level 15
March 27, 2026

For PA see https://www.montgomerycountypa.gov/284/Inheritance-Tax-for-Pennsylvania-Residen

 

You are well under the threshold for filing Form 706; a federal estate tax return.

Level 15
March 27, 2026

You will not be subject to a federal inheritance tax as the exemption for that in 2025 is 13.99 million dollars. You can use this link to PA form Rev-1500 to learn about and file your Pennsylvania inheritance tax.

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NCpersonAnswer
Level 15
March 27, 2026

@ThomasM125 

 

What you quote is the federal "estate tax" which is paid by the estate and not the beneficiaries.  It is not an inheritance tax.  The federal government does not have "inheritance tax"

 

Some states do indeed have an 'inheritance' tax, but that is paid by the beneficiaries and not the estate. 

wozman7Author
Level 2
March 27, 2026

Ok.   Thanks.  Just so I’m clear on this, this means that I don’t have to claim either of these on my federal return as any type of taxable amount?