Florida Estate Taxes

Numerous states enacted estate tax programs which supplemented the federal estate income tax laws. Referred to as “pick-up” taxes, state estate tax programs generally got where federal taxes left-off. Hence, since the majority of 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 total gross worths listed below federal estate earnings tax limitations were not required to pay Florida estate taxes. However, the Florida Legislature got rid of most pick-up taxes after Congress amended the federal Internal Earnings Code to provide state death tax credits to eligible taxpayers. How do these estate tax law changes affect residents?
Residents who are needed to file federal estate tax returns on the estates of decedents who died before Dec. 31, 2004, should likewise submit Florida estate tax returns. For estates required to file federal estate tax returns for deaths that occurred after this date should submit an “Affidavit of No Florida Estate Tax Due When Federal Return if Needed” if they did not owe federal taxes however merely had to file them. For individual representatives of estates who are not needed to pay or file federal estate tax returns, Florida law needs them to file an “Affidavit of No Florida Estate Tax Fee.”

This suggests that whether you are required to file an estate tax return in Florida depends upon whether you are needed to submit one with the Internal Income Service. Pursuant to the Internal Profits Code, you are not needed to file an estate tax return as an individual agent unless the value of the decedent’s estate exceeds the yearly limit as developed by Congress. For the 2011 tax year, the estate tax filing limit is $5 million.