The United States has taxed the estates of decedents since 1916, and gifts since 1924. With tax rates and exemption levels varying greatly over the last two decades, including recent changes with the Tax Cuts and Jobs Act (TCJA), I thought it would be helpful to outline some key forms and current thresholds relating to estate & gift tax.
Form 706 – United States Estate (and Generation-Skipping Transfer) Tax Return
Various dollar amounts and limitations in Form 706 are indexed for inflation. For decedents dying in 2021, the following amounts are applicable.
Form 709 – United States Gift (and Generation-Skipping Transfer) Tax Return
Various dollar amounts and limitations in Form 709 are indexed for inflation. For gifts made in 2021, the following amounts are applicable.
Form M-706 – Massachusetts Estate Tax Return
For decedents dying in 2021, the following amounts are applicable.
The Form M-706 has been revised, and can now be filed by entering information electronically through MassTaxConnect. Filing through Mass -Tax Connect will result in faster processing, and a quicker generation of the Massachusetts Estate Closing Letter and the Certificate Releasing Massachusetts Estate Tax Lien.
Other Massachusetts Forms
The Form M-4768 has been modified to accommodate applications for an extension of time to file and an extension of time to pay. The M-4768A has been eliminated. The requirements to qualify for a valid extension of time to file and to pay remain unchanged.
There may be some changes in federal threshold amounts in the near future with Biden’s tax proposals and pending law changes. If you have questions on estate and gift tax thresholds or filings, leave a comment below, or feel free to reach out to me directly. I’m happy to help!