Instructions For Washington Estate Tax Return
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1
2INSTRUCTIONS
WHO MUST FILE
This Washington Estate Tax Return must be filed by the personal representative if the decedent died on or after May
17, 2005, owned property located in the state of Washington, and the gross estate exceeds the filing threshold for the year of the decedent's
death. A complete copy of the signed Federal Form 706, 706NA, or 706QDT, along with all supporting documentation, must be attached to
the Washington return. There is a different return for deaths occurring prior to May 17, 2005.
FILING THRESHOLDS
Time Period
Filing Threshold
May 17 - December 31, 2005
$1,500,000
January 1, 2006 and thereafter
$2,000,000
WHEN AND WHERE TO FILE
The return is due nine months after the date of death of the decedent. This return is to be filed with the
Department of Revenue, Special Programs Division, PO Box 47488, Olympia, WA 98504-7488.
CALCULATION OF TAX
TABLE W
The tax is calculated using the Washington
From Line 5: if
Taxable estate. The "Washington taxable
Washington
But less
The Amount of
Plus Tax
Of Washington
estate" means the federal taxable estate
Taxable Estate is
than
Tax Equals Initial
Rate %
Taxable Estate
determined without regard to the deduction
at Least
Tax Amount
Value Greater Than
for state estate, inheritance, legacy, or
$0
$1,000,000
$0
10.00%
$0
succession taxes, or fedral QTP deduction
taken if a Washington QTIP was taken:
$1,000,000
$2,000,000
$100,000
14.00%
$1,000,000
Less $1.5 million for decedents dying
$2,000,000
$3,000,000
$240,000
15.00%
$2,000,000
May 17 - December 31, 2005, and
$2 million for decedents dying on
$3,000,000
$4,000,000
$390,000
16.00%
$3,000,000
or after January 1, 2006;
$4,000,000
$6,000,000
$550,000
17.00%
$4,000,000
Less the amount of real or tangible
personal property used for farming
$6,000,000
$7,000,000
$890,000
18.00%
$6,000,000
purposes that qualifies for the farm
deduction; and
$7,000,000
$9,000,000
$1,070,000
18.50%
$7,000,000
.
Less WA QTIP deduction
$9,000,000
$1,440,000
19.00%
$9,000,000
SPECIFIC INSTRUCTIONS FOR PART 2 - COMPUTATION OF TAX
LINE 1: Enter the amount of the federal taxable estate. The entire taxable estate reported on the federal return must be reported to
Washington.
LINE 2:
The following items must be added back into the federal taxable estate: (a) Amount of federal QTIP deduction taken if the estate
also elected to take a Washington QTIP election; and (b) Amounts of estate tax paid to Washington or any other state or district
taken as a deduction under section 2058 IRC. Total the amounts for (a) and (b), if any, and enter on Page 1, Part 2, Line 2. Note -
Funeral expenses on the Federal Form 706 and the Washington return should be reduced by 50% in a community property estate.
LINE 3:
Add lines 1 and 2 and enter the result on line 3.
LINE 4:
On line 4a enter the appropriate statutory deduction. For 2005 deaths enter $1.5 million and for 2006 deaths and thereafter, enter
$2 million. On line 4b enter the amount taken for the farm deduction. See Chapter 458-57 WAC for additional instructions for
determining the farm deduction. Add lines 4a through 4c and enter result on line 4.
LINE 5:
Subtract line 4 from line 3 and enter the result on line 5. This figure equals the "Washington Taxable Estate."
LINE 6:
Use Table W to determine the tax on the Washington Taxable Estate and enter the amount on line 6. For additional information on
calculating the tax see Chapter 458-57 WAC.
LINE 7:
Identify out of state property. In the schedule/item column enter the schedule and item number as listed on the Federal Form 706.
If no out of state property, go to line 9.
LINE 8:
Computation of Apportionment for Out of State Property:
- On line 8a enter the total value of out of state property listed in the line 7 table.
- On line 8b enter the value of the gross estate from Part 2, line 1 of the Federal Form 706.
- On line 8c - subtract line 4b from line 8b and enter the value of the gross estate less farm deduction on line 8c.
- On line 8d - subtract line 8a from line 8c and enter the value of Washington property less farm deduction on line 8d.
- On line 8e - divide line 8d by line 8c and use the result to multiple by line 6 and enter the result on line 8e.
LINE 9:
Enter the Washington Estate Tax Due. This amount equals line 6 or if apportioning for out of state property, line 8e.
SIGNATURE:
The personal representative, fiduciary, executor, taxpayer, trustee, attorney, or designated filer of the estate must sign this return. The
Department will not contact the preparer regarding return questions unless the release portion at the end of Part 1, Page 1 is completed.
REV 85 0049e (a) (10/26/05)
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