Hello,

My wife passed away and her bank savings account ($42,000) was transferred to me as I was the sole heir. I live in California but she was living in Oregon at the time, the bank is based in Oregon as well. I am unclear on what Federal and/or State taxes I may owe on this?

Thanks!

No fed/state taxes you owe; Money inherited is not taxable income under Section 102 of the Internal Revenue Code in the case of state rules,depending on your relationship to the decedent, you may receive an exemption or reduction in the amount of inheritance tax you must pay. For example, most states exempt a spouse from the tax when they inherit the property from another spouse

That's surprising but welcome news. Thank you wry much for your help.