When Are Gift & Estate Taxes Due?
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Are you aware of the deadlines for gift and estate taxes? Unlike traditional tax schedules, gift, estate, and inheritance taxes don’t have a specific day each year that they are due, making it easy to accidentally miss a deadline resulting in penalties or late fees.
Understanding Gift & Estate Taxes
Gift and estate taxes are a set of taxes imposed on gifts, inheritances, and estates. These taxes are separate from any other income tax you may owe in the same period.
When a gift or estate becomes taxable is dependent on which state you live in.
Gift Taxes
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$18,000 per recipient for 2024
$19,000 per recipient for 2025
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N/A
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N/A
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N/A
Estate Taxes
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$13.61 million per individual for 2024
$13.99 million per individual for 2025
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Estates with over $5 million in assets
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N/A
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Estates with assets over $4,710,800 in 2024
Estates with $4,873,200 in 2025
Deadlines for Gift and Estate Taxes
The federal government handles the majority of gift and estate taxes, but some states also impose their own rules on these types of taxes.
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Your federal estate tax return is due nine months after the death has occurred. However, you can qualify for a six-month extension by the original due date and pay the correct estimated tax payments.
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In the state of Virginia, there are no gift or estate taxes.
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In Maryland, there is no gift tax, but an estate tax applies to estates with assets over $5 million. The payment of the Maryland estate tax is due nine months after the decedent's date of death.
An extension is available if you file Form MET-1E and a copy of the federal extension application, Form 4768. Maryland's Comptroller may extend the deadline for filing estate tax returns to six months or up to one year if the person filing the return is out of the United States.
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In the District of Columbia, estate taxes must be filed and paid within 10 months after the death has occurred. However, you may file for a 6-month extension on or before the original due date.
Questions
Knowing the important deadlines is just one part of the gift and estate taxes. It's also important to think ahead to take advantage of all the tax benefits available. Have questions about the Gift & Estate Tax Deadlines? Our tax planning advisors are here to help. Contact us.