I received $120,000 from my father's estate. The check was sent to me from a real estate company and I deposited it into a money market account in 2011. I also filed for an extension for October 2012. Do I owe taxes for the income received from the state. I live in Texas.

ANSWER

Expert Eugene Jaspan's Answer:

If this is money you received as a beneficiary, then you do not owe any tax on the principal you received.  However, you will have to pay tax on the interest you earn from the money market account.  This is for Federal purposes.  Since Texas, to my knowledge, has no state income tax, you need not be concerned about it at the state level.

Eugene Jaspan, CPA

New Jersey

24 yrs experience

• Currently 4.3333/5 Stars.
• 1
• 2
• 3
• 4
• 5

26 Ans.