Lots of states enacted estate tax programs which supplemented the federal estate earnings tax laws. Known as “pick-up” taxes, state estate tax programs generally got where federal taxes left-off. Therefore, considering that many 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 values listed below federal estate earnings tax limits were not required to pay Florida estate taxes. However, the Florida Legislature eliminated most pick-up taxes after Congress modified the federal Internal Revenue Code to give state death tax credits to qualified 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 file Florida estate tax returns. For estates required to file federal estate tax returns for deaths that occurred after this date should file an “Affidavit of No Florida Estate Tax Due When Federal Return if Required” if they did not owe federal taxes but simply needed to submit them. For individual agents of estates who are not needed to pay or file federal estate tax returns, Florida law needs them to submit an “Affidavit of No Florida Estate Tax Charge.”
This means that whether you are required 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 Revenue Code, you are not needed to submit an estate tax return as a personal representative unless the value of the decedent’s estate exceeds the yearly threshold as developed by Congress. For the 2011 tax year, the estate tax filing limit is $5 million.