Inheritance question......please help?

Question

my father passed recently, and he is leaving me 25k in his will, do i have to pay taxes on it? my stepmom is the executor.

does it matter what state i live in? i live in MD

Answer 1

You do not have to pay federal tax on it.  If the state has an inheritance tax, then you may have to pay state inheritance tax.

Answer 2

You won't pay tax at the federal level, and only a few states levy an inheritance tax.

Answer 3

I believe you do. It's called an inheritance or estate tax.

Answer 4

You will owe taxes on it.  Life insurance proceeds are however non-taxable.