AboutHelen P. O`Planick, EA Expertise I am a tax professional, with experience in individual taxation. I would prefer not to answer questions about non-resident aliens or corporate taxation. Please do not ask me state related questions, unless the state is Pennsylvania. There are 42 taxing states and 42 TOTALLY different sets of state tax law.
Experience I have been preparing tax returns almost all my life. I have been in professional practice for 25 years and I am enrolled to practice before the Internal Revenue Service.
Organizations National Association of Enrolled Agents
Publications I am a prior Money Magazine Tax Test taker and have been quoted extensively in all media including monthly periodicals and books by tax authorities.
Question Recently my Mother passed away and I was the beneficiary of her annuity. She only had it 2 years, with an initial deposit of $51,000. After she received monthly payments, the balance distributed to me was around $46,600. What are my federal and/or state tax liabilities. I am a resident of PA.
Also, if I deposit this money into an interest bearing account, will I also have to pay taxes on that interest?
Thank you in advance for you help....it is very much appreciated.
Answer You have to find out if the money she put in was tax deferred or not. That will tell you if you have federal taxes due. PA will not care, it is not taxable to the state or your local tax authority.
Once you put the money anyplace and if it makes money, yes, the appreciation is taxable.
If you need a referral to a PA professional, I know tons of them.
