Lots of states enacted estate tax programs which supplemented the federal estate income tax laws. Called “pick-up” taxes, state estate tax programs usually got where federal taxes left-off. Hence, 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 overall gross values listed below federal estate earnings tax limitations were not required to pay Florida estate taxes. However, the Florida Legislature eliminated most pick-up taxes after Congress modified the federal Internal Income Code to provide state death tax credits to eligible taxpayers. How do these estate tax law changes impact residents?
Residents who are required to submit federal estate tax returns on the estates of decedents who passed away before Dec. 31, 2004, must likewise file Florida estate tax returns. For estates needed to submit federal estate tax returns for deaths that took place after this date must file an “Affidavit of No Florida Estate Tax Due When Federal Return if Required” if they did not owe federal taxes but simply had to submit them. For personal agents of estates who are not required to pay or submit federal estate tax returns, Florida law needs them to submit an “Affidavit of No Florida Estate Tax Fee.”
This indicates that whether you are required to submit an estate tax return in Florida depends upon whether you are needed to submit one with the Irs. Pursuant to the Internal Earnings Code, you are not needed to submit an estate tax return as a personal agent 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.