There have been recent law changes to the estate tax for decedents dying on or after January 1, 2023. See St. 2023, c. 50. The new law amended the estate tax by providing a credit of up to $99,600, thereby eliminating the tax for estates valued at $2 million or less and reducing the tax for estates valued at more than $2 million. Below, you will find answers to frequently asked questions regarding these recent changes. DOR will continue to update this FAQ and issue further guidance as needed.
How do I file an estate tax return for decedents who died on or after January 1, 2023?
The Department of Revenue (DOR) has released a version of Form M-706 for the estates of decedents who died on or after January 1, 2023. You can also file the estate tax return online at MassTaxConnect.
I filed an estate tax return for a decedent who died on or after January 1, 2023, before the version of Form M-706 for the estates of decedents who died on or after January 1, 2023 was available. The value of that estate was below $2 million. Is there anything I need do?
No. You do not need to do anything if you have already filed the return. We will review the return and recalculate based on the $2 million threshold. If there is an overpayment on the account, a refund will be issued automatically.
When can I expect to get a refund?
DOR is issuing refunds for 2023 dates of death based on the order the return was filed and received.
If I requested an extension to file or requested a lien release and made a payment for a decedent who died on or after January 1, 2023, and the federal taxable estate value is below $2 million, is there anything I need to do?
Yes. You still need to file an estate tax return to receive your refund.
My address has changed after filing the estate tax return on behalf of the decedent. What should I do to make sure I receive the refund?
You need to provide the new address by sending a message at MassTaxConnect account or by mail addressed to the Massachusetts Department of Revenue, Estate Tax Unit, 200 Arlington St., Chelsea MA 02150.
If the estate tax return total gross estate is less than $2 million but there is an adjusted taxable gift which when added exceeds $2 million, do I need to file a return?
Yes. You still need to file a return.
If I am not required to file an estate tax return, do I need to file a request for lien release?
No. You do not need to request a lien release. You can prepare an affidavit of no filing requirement and submit it to the registry where the property is located.
Does the new law change the computation of the federal taxable estate used to calculate the estate tax?
No. The new law does not change the computation of the federal taxable estate. You should calculate the federal taxable estate in the same manner as you would for the estates of decedents who died before January 1, 2023. For more information on calculating the federal taxable estate, go to the Massachusetts Estate Tax Guide.