Numerous states enacted estate tax programs which supplemented the federal estate earnings tax laws. Referred to as “pick-up” taxes, state estate tax programs usually picked up where federal taxes left-off. Thus, because many 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 removed most pick-up taxes after Congress amended the federal Internal Revenue Code to offer 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 died prior to Dec. 31, 2004, need to also submit Florida estate tax returns. For estates needed to submit federal estate tax returns for deaths that happened after this date needs to file an “Affidavit of No Florida Estate Tax Due When Federal Return if Needed” if they did not owe federal taxes however merely needed to file them. For personal representatives of estates who are not required to pay or file federal estate tax returns, Florida law needs them to file an “Affidavit of No Florida Estate Tax Charge.”
This suggests that whether you are required to submit an estate tax return in Florida depends upon whether you are needed to file one with the Internal Profits Service. Pursuant to the Internal Profits 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 annual threshold as developed by Congress. For the 2011 tax year, the estate tax filing limit is $5 million.