FAQs / Probate Process / Do I need to file tax returns for the estate?

Do I need to file tax returns for the estate?

The personal representative will be responsible for filing the final individual income tax return (Form 1040) for the person who passed away, as well as any necessary estate income tax return (Form 1041). Estate income tax returns are only required if estate assets generate more than $600 of income annually.

In Florida, there’s no state-level death tax or inheritance tax, but there is still a federal estate tax requirement, so if an estate is valued at more than $11 million, there is a potential federal estate tax bill, and then a return would have to be filed (Form 706). The number of estates that require a Form 706 to be completed is minuscule. For any probate tax matter, it is important to work with an experienced Florida probate attorney and accountant.

What Happens After Federal Form 706 is Filed?

Once the form is signed and filed and then received by the Florida Department of Revenue, they issue an acknowledgment letter to the personal representative. This person will send this letter to the IRS and the IRS will determine whether to audit the estate which may increase or decrease the amount of tax due. Upon the completion of the review, IRS will issue a closing letter that is sent to the personal representative who sends this copy to the Florida Department of Revenue. Then, they issue a Final Certificate to the personal representative.

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