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The amount of the Massachusetts nonresident estate tax is the proportion of the allowable credit from the federal estate tax return that the gross value of the Massachusetts property bears to the entire federal gross estate wherever situated.
With this change, Massachusetts residents and non-residents who own property in Massachusetts that have a gross estate valued over $2 million will be required to file an estate tax return and pay an estate tax. See Mass.
The Massachusetts estate tax for the estates of residents and nonresidents is computed with reference to the allowable federal estate tax credit for state death taxes formerly allowed in the Internal Revenue Code in effect on December 31, 2000.
Nonresidents use Form 1-NR/PY - Massachusetts Nonresident or Part-Year Resident Income Tax Return. Use Schedule R/NR Resident/Nonresident Worksheet to adjust your income, deductions, and exemptions.
You also must file Form 1-NR/PY if you were a resident of Massachusetts for part of the year and you had more than $8,000 in gross income during that time, whether received from sources inside or outside of Massachusetts.
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Still, any estate in Massachusetts worth less than $2 million (death after January 1st, 2023) will not be subject to an estate tax.
Find your Massachusetts Withholding Account Number Deposit Frequency. You can find these on MassTaxConnect or on any previous correspondence from the MA Department of Revenue. If youre unsure, contact the agency at 617-887-6367.
Trusts. The best way to protect your assets is to create trusts. Depending on the total value of your estate and whether you are married, you and your spouse can create one or multiple types of trusts. Each may individually fall below the million dollar threshold, allowing you to avoid estate taxes in Massachusetts.

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