I just received a 25,000.00 distribution from my father's...
I just received a $25,000 distribution from my father's trust fund in the state of RI. I am a NY state resident. What tax form will I have to submit to the state of RI, and what percentage of the $25,000 will I owe the state of RI?
Since the trust fund distribution was earned in the state of Rhode Island, you will need to file a tax return there. The form you need is Form RI 1040NR. NR stands for non-resident. You will also need to fill out Form 1040NR RI Schedule III. This form takes the taxable income from your Federal 1040 return and allocates the portion that was earned in RI. The tax due to RI is calculated here.
When you prepare your New York State income tax return, you can claim credit for the tax paid to RI. The form for doing this is NY Form IT-112-R. This for a New York State Resident Credit. It allocates your total taxable income between NY and RI. You will only pay NYS tax on the portion that was earned in NY.
Miss Steinberg certainly knows her tax forms. Living in New York state, inheriting $25,000 from his dad who resided in RI poses a slightly complicated issue for a middle class person, juggling both states as it were. It's just lucky for this person that the inheritance was based in RI not in NY, which probably has the worst tax rates for middle class folks in the United States. Especially if you reside in New York City, where you have to pay New York City tax, NY State tax, and Federal tax. Plus some lovely miscellaneous NY taxes such as the Transportation Tax and a rather large tax on many items you buy in stores, that make living in New York more expensive than most areas in America. And now you can't even use mobile phones as a tax write off, making it even more expensive to live in a place like New York.
It's getting rougher and rougher for middle class people in America, from what I can see. In fact many middle class tax payers, who pay at a fairly high rate yet earn at a relatively modest rate, will get a loan on inheritance during probate, or get a loan against their inheritance in trust, to pay for expenses and debts that they can't pay out of pocket. Wealthy people rarely go down this avenue, as they usually have ready cash.
I've noticed that many middle class heirs become very gloomy and disenchanted during probate with the inheritance they are to receive, being that it's frequently a lot lower than they had expected, hoping to get rid of most of their debt, maybe finish paying off their mortgage and high interest credit cards, and other outstanding loans. I think this often creates a sort of depression based on disappointment. To combat this sort of disappointment over a smaller inheritance than expected, heirs often decide to start looking at different inheritance loans, probate loans, estate loans, and other inheritance advance assignments, right away... to get a loan on inheritance, to borrow against their inheritance, to get as large an inheritance cash advance, or probate cash advance, as possible, to pay down on distressing debt, as much as they can.
I've noticed those heirs start researching like PHDs... inheritance law, estate taxes; and estate loans, probate loans, probate advances as well as inheritance loans, trust fund cash advances, or trust fund loans from one of the better known inheritance loan companies, or probate loan companies — and end up filling out inheritance cash advance, probate advance or probate loan applications to several online probate loans, trust fund loans or inheritance loans companies that provide loans on inheritance, inheritance advance assignments for probate cash advance funds, inheritance loans in advance, from well known, established inheritance advance companies like www.heiradvance.com, www.inheritancenow.com and www.inheritanceadvance.com. All Inheritance loans, estate loan, or probate loans specialists that provide pretty much the same inheritance advance services -- mainly for middle class people. As we all know, wealthy folks usually inherit a large amount of assets, frequently in trust…that defer or hold taxes at bay, involving pricey attorneys and CPAs. Complicated and not inexpensive trusts, mainly focused on tax avoidance or deferment -- for the rich. Not documents like Miss Steinberg proposes, which are for middle class or working class people. And that my friends is the way it goes. Two systems, for two financial levels. And they don't blend, it's one or the other.
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