Do I pay inheritance tax in Iowa or Indiana?

My dad lived in Iowa and has passed, I live in Indiana, will I pay Iowa or Indiana inhertance tax( all the forms have been taken care and the State of Iowa was paid)

2 Answers

  • 1 decade ago
    Favorite Answer

    I am sorry to tell you that both Iowa and Indiana have an Inheritance Tax and an Estate Tax. An Estate Tax is paid by the estate based on the value of the estate. An Inheritance Tax is a tax paid by the heir based on the amount each heir inherits.

    While the Federal Government (except in 2010) and some states have an Estate Tax, there is no Federal Inheritance Tax. I don't know if you will get stuck with a tax (Transfer or Inheritance) from Iowa but you will certainly have to pay the Indiana Inheritance Tax. You should make an appointment as soon as possible with an Indiana CPA who is well versed in Inheritance Tax law, preferably in both Iowa as well as Indiana.

    As clarification:

    "You" would not have to pay any Estate Tax. The Estate Tax due, if any, would be paid before you received your inheritance.

    Source(s): This web site shows the different types of taxes by state, not just Estate and Inheritance Taxes.
  • Anonymous
    1 decade ago

    Heirs do not pay inheritance tax at the federal level.

    Inheritance "estate" taxes are paid by the estate of the deceased. There are currently (and very temporarily) no estate or inheritance taxes as of Jan 1, 2010 at the federal level.

    The state may have an estate tax. It is assessed by the state your father lived in on the day he passed awThe amount here is relevant. If you are talking about less then $100K, then you probably have no taxes...but I am not sure about your state. I would think not.

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