Lots of states enacted estate tax programs which supplemented the federal estate income tax laws. Referred to as “pick-up” taxes, state estate tax programs usually picked up where federal taxes left-off. Hence, because most estates did not owe federal income taxes, a small number of Floridians paid state pick-up estate taxes.
According to the pick-up tax program, estates with overall gross worths below federal estate income tax limitations were not required to pay Florida estate taxes. Nevertheless, the Florida Legislature removed most pick-up taxes after Congress amended the federal Internal Income Code to offer state death tax credits to qualified taxpayers. How do these estate tax law changes affect residents?
Residents who are required to submit federal estate tax returns on the estates of decedents who passed away prior to Dec. 31, 2004, should likewise submit Florida estate tax returns. For estates required to submit federal estate tax returns for deaths that occurred after this date needs to submit an “Affidavit of No Florida Estate Tax Due When Federal Return if Needed” if they did not owe federal taxes however merely needed to submit them. For personal agents of estates who are not needed to pay or submit federal estate tax returns, Florida law requires them to file an “Affidavit of No Florida Estate Tax Charge.”
This implies that whether you are required to submit an estate tax return in Florida depends upon whether you are required to file one with the Irs. Pursuant to the Internal Earnings Code, you are not required to file an estate tax return as a personal representative unless the value of the decedent’s estate goes beyond the yearly limit as established by Congress. For the 2011 tax year, the estate tax filing threshold is $5 million.