Numerous states enacted estate tax programs which supplemented the federal estate earnings tax laws. Called “pick-up” taxes, state estate tax programs usually picked up where federal taxes left-off. Therefore, given that most estates did not owe federal earnings 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 limits were not required to pay Florida estate taxes. The Florida Legislature eliminated most pick-up taxes after Congress modified the federal Internal Profits Code to give state death tax credits to qualified taxpayers. How do these estate tax law modifications 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, must likewise submit Florida estate tax returns. For estates needed to file federal estate tax returns for deaths that took place after this date needs to submit an “Affidavit of No Florida Estate Tax Due When Federal Return if Required” if they did not owe federal taxes but merely needed to submit them. For individual agents of estates who are not required to pay or submit federal estate tax returns, Florida law requires them to file an “Affidavit of No Florida Estate Tax Fee.”
This means that whether you are needed to file an estate tax return in Florida depends on whether you are required to file one with the Internal Earnings Service. Pursuant to the Internal Earnings Code, you are not needed to file an estate tax return as a personal agent unless the value of the decedent’s estate surpasses the yearly threshold as established by Congress. For the 2011 tax year, the estate tax filing threshold is $5 million.