Ask Liz Weston

Get smart with your money

Taxes

Tuesday’s need-to-know money news

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Today’s top story: How your money story can help you break free. Also in the news: Why you should freeze your child’s credit, 4 things that could make you a target for a tax audit, and what happens if you don’t pay a debt.

How Your Money Story Can Help You Break Free
Going way back to the beginning.

Why You Should Freeze Your Child’s Credit
Even children can be victim’s of identity theft.

4 Things That Could Make You a Target for a Tax Audit
Don’t leave yourself vulnerable.

What Happens if You Don’t Pay a Debt?
Nothing good.

Wednesday’s need-to-know money news

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Today’s top story: Don’t let technology bully you into tipping. Also in the news: 4 things that could make you the target of an audit, how lending a hand by co-signing a loan can backfire, and 7 smart ways to spend a $1,000 tax refund.

Don’t Let Technology Bully You Into Tipping
You decide how much.

4 Things That Could Make You a Target for a Tax Audit
Freelancers especially.

Lending a Hand by Co-Signing a Loan Can Backfire
Good intentions can lead to bad trouble.

7 Smart Ways to Spend a $1,000 Tax Refund
How to spend your windfall.

Q&A: A large foreign bequest could trigger U.S. taxes

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Dear Liz: I have received an inheritance of $445,000 from a relative who died out of the country. Do I have to pay income tax on this money?

Answer: If you inherited from someone who was a U.S. citizen who lived abroad, then that person’s estate may be subject to U.S. estate taxes. The estate would have to be quite large, though. In 2017, estates worth less than $5.49 million per person were exempt from the tax. In 2018, the amount was raised to $11.18 million.

If you had paid any taxes on your inheritance to a foreign government, you could take a tax credit on your U.S. tax return for that amount.

Otherwise, you probably won’t owe any taxes. The federal government and most states don’t levy inheritance taxes on people who receive bequests. The exceptions are Iowa, Kentucky, Nebraska, Maryland, Pennsylvania and New Jersey, which do levy taxes on inheritances. All exempt spouses, and some exempt other immediate relatives.

Friday’s need-to-know money news

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Today’s top story: The single parent’s guide to life insurance. Also in the news: How to pay your taxes with a credit card if you must, life insurance and suicide, and how to prepare your kids for “adulting.”

The Single Parent’s Guide to Life Insurance
Protecting your children’s future.

If You Insist on Paying Taxes With a Credit Card, Here’s How
Don’t pay more than you already have to.

Does Life Insurance Cover Suicide?
Practical issues to address.

Here’s how to prepare your kids for ‘adulting’
Having the “money talk.”

Thursday’s need-to-know money news

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Today’s top story: What the Fed rate hike means for your CDs. Also in the news: Steps to take if you don’t trust your spouse at tax time, 3 women you should know in investing, and 6 personal finance rules to live by in your 40s.

What the Fed Rate Hike Means for Your CDs
Look for higher rates.

5 Steps to Take If You Don’t Trust Your Spouse at Tax Time
Watch what you sign.

3 Women You Should Know in Investing
Leaders in investing.

6 Personal Finance Rules to Live By in Your 40s
Time to bulk up your retirement savings.