Florida Estate Taxes

Lots of states enacted estate tax programs which supplemented the federal estate earnings tax laws. Known as “pick-up” taxes, state estate tax programs normally selected 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 overall gross worths below federal estate earnings tax limitations were not needed to pay Florida estate taxes. The Florida Legislature removed 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 affect 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 required 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 however just needed to file them. For individual representatives of estates who are not needed to pay or file federal estate tax returns, Florida law requires 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 Income 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 yearly limit as established by Congress. For the 2011 tax year, the estate tax filing threshold is $5 million.