How do I calculate estate taxes?

When calculating estate taxes in Virginia, it is important to remember that Virginia does not impose a separate estate tax. However, there are still a few taxes that you might need to pay when settling the estate of a deceased person. First, any taxes due on the federal level must be paid. In most cases, this includes the federal estate tax, which is imposed on estates of more than $11.58 million as of 2020. To calculate the exact amount of federal estate tax owed, you will need to complete Form 706 and file it with the IRS. Second, any taxes due on the state level must be paid. In Virginia, the only taxes due on the state level are inheritance taxes. Generally, the tax rate ranges from 0% to 20%, depending on the relationship of the beneficiary to the deceased and the size of the inheritance. To calculate the exact amount of inheritance tax due in Virginia, you must complete Form IT-140 Schedule M. Finally, you should also consider any other taxes that may be due. For example, you may need to pay estate income taxes, property taxes, or other miscellaneous taxes, depending on the circumstances. The best way to make sure that you are paying the right amount of estate taxes is to consult with a knowledgeable attorney who can provide guidance tailored to your situation.

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