State Tax Deduction for Estate Tax Paid to Another State


V

vahania

My brothers and I are the beneficiaries of my father's
estate. The estate paid about $30,000 of estate taxes to
the federal government, and some smaller amount to the state
(Washington). Most of my portion of the inheritance is
taxable income to me (alot of previously untaxed IRAs). I
have already calculated the deduction I can take on my
federal taxes for the portion of the estate tax that was
attributable to my inherited amount. My question is on the
state tax, since it seems to me that I should be able to
take a similar deduction on my own state taxes (Indiana),
for taxes that were already paid to another state
(Washington). My question is whether I can take such a
deduction, and if so, how to calculate it.

Thanks in advance,
 
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D

David Woods, EA, ChFC, CLU

vahania said:
My brothers and I are the beneficiaries of my father's
estate. The estate paid about $30,000 of estate taxes to
the federal government, and some smaller amount to the state
(Washington). Most of my portion of the inheritance is
taxable income to me (alot of previously untaxed IRAs). I
have already calculated the deduction I can take on my
federal taxes for the portion of the estate tax that was
attributable to my inherited amount. My question is on the
state tax, since it seems to me that I should be able to
take a similar deduction on my own state taxes (Indiana),
for taxes that were already paid to another state
(Washington). My question is whether I can take such a
deduction, and if so, how to calculate it.
Does Indiana allow an estate tax deduction for income taxes?
If so, then yes, if not then no. I don't know if they do
or they don't, but it seems to me you're confusing estate
tax paid to a state with income tax paid to a state.
 

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