What is Inheritance Tax Illinois?
Inheritance Tax, sometimes confused with Estate Tax, is a tax on the beneficiaries/receivers of an estate (e.g., your parents/families’ cash and assets). There is no Federal tax on Inheritance tax and are only taxed in 6 US states. Inheritance tax does not depend on the total amount of the estate; instead, it depends on the person who inherits the property.
Estate tax, on the other hand, is a tax on all of the assets of a decedent before they are distributed to beneficiaries. An estate tax is calculated based on the net value of the property, cash and assets minus debts owned by a deceased person on the date of death. Estate Tax is taxed on the Federal level after $5,430,000 asset value is reached. Estate Tax is also taxed in 17 States with different exemption levels.
Both Inheritance Tax and Estate Tax are known as “Death Tax.” Remember, Inheritance Tax (think: After giving) and Estate Tax (think: Before giving) are two totally different taxes even though a lot of people think that are the same.
How much is Illinois Inheritance Tax?
There are NO Illinois Inheritance Tax. All inheritance are exempt in the State of Illinois.
If the total Estate asset (property, cash, etc.) is over $5,430,000, it is subject to the Federal Estate Tax (Form 706). The Federal estate tax only affects .02% of Estates. In more simplistic terms, only 2 out of 1,000 Estates will owe Federal Estate Tax.
There is no Illinois Estate Tax.
How to file Illinois Inheritance Tax?
Since there are no Illinois Inheritance Tax, you do not need to file any tax forms.
Get more information on Illinois Inheritance Tax:
You can call IRS directly at 800-829-1040 or call the Illinois Department of Revenue regarding inheritance and estate tax.