Do I owe taxes on this inheritance?
By Karin Price Mueller | NJMoneyHelp.com for NJ.com Q. My dad passed away on Feb. 1, 2022, and I am receiving $4,000 from his annuity .I live in New Jersey but the annuity money is in Maryland. Do I have to pay any kind of tax on this? There was no beneficiary and I am the next of kin. — Son A. We’re sorry to hear about your dad. Here’s what you need to know about inherited annuities. For starters, an annuity is an insurance product, said Bernie Kiely, a certified financial p
Federal and regional: what you need to know about different levels of taxes and refunds
Whether a state tax refund counts as federal income, according to NJ. Do I have to pay federal taxes on the amount the state overpaid you? The IRS has what is called a tax credit rule. This rule says that if you receive a state income tax or real estate tax deduction within one year and receive a refund of some or all of the next year's payments, you must include the refund as income on your next year's tax return if there was a tax benefit from the deduction, as Bernie Keely
Are state tax refunds taxed again on my federal return?
By Karin Price Mueller | NJMoneyHelp.com for NJ.com Q. Are New Jersey state tax refunds received this year from overpayment of estimated taxes taxable on this year’s federal return? — Taxpayer A. Here’s what you need to know. The IRS has what’s called the Tax Benefit Rule. This rule states that if you take a deduction for state income taxes or real estate taxes in one year and get a refund of part or all the payments in the next year, you must include the refund as income on