Numerous states enacted estate tax programs which supplemented the federal estate income tax laws. Called “pick-up” taxes, state estate tax programs normally selected up where federal taxes left-off. Therefore, since a lot of estates did not owe federal income taxes, a little number of Floridians paid state pick-up estate taxes.
According to the pick-up tax program, estates with overall gross worths listed below federal estate income tax limitations were not required to pay Florida estate taxes. The Florida Legislature eliminated most pick-up taxes after Congress modified the federal Internal Earnings Code to give 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, need to also file Florida estate tax returns. For estates needed to submit federal estate tax returns for deaths that happened after this date must file an “Affidavit of No Florida Estate Tax Due When Federal Return if Needed” if they did not owe federal taxes however just had to file them. For individual agents of estates who are not required to pay or submit federal estate tax returns, Florida law requires them to submit an “Affidavit of No Florida Estate Tax Charge.”
This suggests that whether you are needed to submit an estate tax return in Florida depends on whether you are needed to submit one with the Internal Profits Service. Pursuant to the Internal Profits Code, you are not needed to file an estate tax return as a personal representative unless the worth of the decedent’s estate exceeds the yearly limit as established by Congress. For the 2011 tax year, the estate tax filing threshold is $5 million.