Massachusetts Estate Taxes
Can someone tell me if an estate exceeds the $1 million exclusion, do the heirs pay inheritance taxes on the entire estate or only on the amount that exceeds $1 million? I am addressing Massachusetts, also known as Taxachusetts.
Permalink Submitted by Alan - IRA critic on Fri, 2013-08-02 03:15
MA has an estate tax, not an inheritance tax. The estate of the decedent is responsible for filing the estate tax return and paying any taxes due. Only the amount in excess of the 1mm exclusion is subject to tax.
Permalink Submitted by Mary on Fri, 2013-08-02 21:16
Thank you, Alan. I did remember that, but a friend questioned the accuracy of my response. Thank you again.
Permalink Submitted by Mary on Mon, 2013-08-05 16:25
Alan, below is info a friend sent to me:”I called the state to find out how estate taxes are determined and they confirmed what I originally told you.There is no state tax if your estate is $1M or less. Taxes are due on the entire amount if your estate is worth more than $1M… for example, if your estate is worth $1.5M, taxes due are based on $1.5M, not $.5M.” What do you think?
Permalink Submitted by Bruce Steiner on Mon, 2013-08-05 18:15
If it works the same way in Massachusetts as in New York, which also has a $1 million exempt amount, the tax on $1.5 million would be $64,400. The law firm preparing the estate tax return will probably do it using software which will do the calculations.