Pennsylvania Inheritance Tax Forms 2023 - 2024

When filing PA inheritance tax forms, the personal representative (or other person in charge of the estate) must submit a complete and accurate return. It is a violation of Pennsylvania law to file a false or erroneous inheritance tax return. The return must be signed by the person(s) responsible for its preparation. Those signing the return may be held liable for any damages resulting from a wrongful or fraudulent filing. The address of the preparer and the date the return was prepared should also be noted on the form.

Generally, only those assets which are owned by the decedent at the time of death are subject to Pennsylvania inheritance tax. The net value of taxable property is determined by subtracting approved deductions from the gross estate value. All real property located in the Commonwealth of Pennsylvania and all tangible personal property (except for those with a foreign situs) are taxable, even if the decedent owns such property by virtue of a contract.

Inheritance tax payments are due within three months of the decedent’s death and become delinquent nine months after the decedent’s death. If the decedent is a resident of Pennsylvania, a 5% discount is available for those who pay the inheritance tax within nine months of the decedent’s death. For estates of nonresident decedents, the inheritance tax return along with any payment(s) due are filed with the nonresident tax unit at the Pennsylvania Department of Revenue, Attention: John Reidman.

What is Pennsylvania Inheritance Tax?

The Pennsylvania inheritance tax is a transfer tax imposed upon the death of a person in the Commonwealth of Pennsylvania on the net value of taxable property passing to heirs. The tax is calculated on the gross estate minus approved deductions, such as debts owed by the decedent, funeral expenses, and an amount equal to $3,500 per family member. In addition, certain property is exempt from the tax altogether. This includes the property of a deceased spouse, the interest in any jointly owned real or tangible personal property (including contracts for sale of out-of-state real estate) held as joint tenants with right of survivorship or by the entirety with another person, and the present value of qualified family-owned business interests.

How to File Pennsylvania Inheritance Tax Forms?

The estate must file the REV-1500, Inheritance Tax Return, within nine months of an individual’s death to report and pay the inheritance tax. The return must list all taxable assets except those that are already taxed by the county assessment and appraisal system for estate valuation purposes.

The REV-1500 form also asks for the value of any charitable bequests and governmental distributions that will be distributed. This total should be entered on line 13 of the REV-1500 cover sheet. It is also possible for the estate to claim a spousal poverty credit on the return. Life insurance proceeds are also exempt, regardless of whether they are paid directly to a beneficiary or to the deceased’s estate.