Numerous states enacted estate tax programs which supplemented the federal estate earnings tax laws. Understood as “pick-up” taxes, state estate tax programs usually got where federal taxes left-off. Therefore, given that many estates did not owe federal earnings taxes, a little number of Floridians paid state pick-up estate taxes.
According to the pick-up tax program, estates with total gross values below federal estate earnings tax limitations were not required to pay Florida estate taxes. Nevertheless, the Florida Legislature eliminated most pick-up taxes after Congress changed the federal Internal Income Code to offer state death tax credits to qualified taxpayers. How do these estate tax law modifications impact residents?
Residents who are required to file federal estate tax returns on the estates of decedents who passed away before Dec. 31, 2004, should likewise submit Florida estate tax returns. For estates required to file federal estate tax returns for deaths that happened after this date needs to file an “Affidavit of No Florida Estate Tax Due When Federal Return if Required” if they did not owe federal taxes however just had to submit them. For individual representatives of estates who are not needed to pay or submit federal estate tax returns, Florida law requires them to submit an “Affidavit of No Florida Estate Tax Charge.”
This indicates that whether you are needed to file an estate tax return in Florida depends upon whether you are required to file one with the Irs. Pursuant to the Internal Income Code, you are not needed to submit an estate tax return as an individual agent unless the worth of the decedent’s estate surpasses the annual limit as established by Congress. For the 2011 tax year, the estate tax filing limit is $5 million.