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Massachusetts Free Printable M-706 for 2024 Massachusetts Estate Tax Return

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Estate Tax Return
M-706

Massachusetts Department of Revenue Name of decedent Form M-706 Massachusetts Estate Tax Return 3 Date of death (mm/dd/yyyy) Social Security number 3 3 Street address at time of death City/Town State Zip County of probate court Case/docket number Name of executor/personal representative Designation Country Phone Street address City/Town State Zip Country Name of attorney(s), if any, representing estate Phone Street address City/Town State Zip Country Fill in if filed: Form M-4768 Form M-4422 Fill in if: Amended return (see “Amended Return” in instructions) Amended return due to federal change Note: The Massachusetts estate tax is computed using the Internal Revenue Code (IRC) in effect on December 31, 2000. Changes to the IRC enacted after December 31, 2000 do not affect the computation of the Massachusetts estate tax. All references to the U.S. Form 706 are to the form with a revision date of July 1999. This form and instructions are available at mass.gov/dor. All estates are required to submit a completed U.S. Form 706 with a revision date of July 1999 in addition to the Massachusetts Form M-706. If the estate is required to file a current U.S. Form 706, attach a copy of that return, with all attachments, in addition to the U.S. Form 706 with a revision date of July 1999 and the Massachusetts Form M-706. For Privacy Act Notice, see instructions. Declaration The personal representative of the estate is personally liable for transfers of estate assets before all taxes are paid. The undersigned certifies under the penalties of perjury that all items and statements contained herein are true and accurate in every particular. Signature Title Date File and pay online at mass.gov/masstaxconnect. It's fast and easy to use. Or, mail this return with payment in full to Massachusetts Department of Revenue, PO Box 7023, Boston, MA 02204. Make check or money order payable to Commonwealth of Massachusetts. Rev. 10/18 FORM M-706, PAGE 2 Name of decedent Date of death (mm/dd/yyyy) Social Security number 3 3 3 01 Marital status at time of death: 01a Name of deceased spouse Single Married Widow or widower 1b Social Security number of spouse 1c Date of death of spouse (mm/dd/yyyy) 12 Fill in if there was any insurance on the decedent’s life that is not included in the gross estate (attach Form(s) 712 for life insurance). . . . . . . . . . . 13 Fill in if at time of death the decedent owned any property as a joint tenant with rights of survivorship in which: one or more of the other joint tenants was someone other than the decedent’s spouse and less than the full value of the property is included on the return as part of gross estate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Fill in if at time of death the decedent owned any interest in a partnership or unincorporated business or any stock in an inactive or closely held corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Fill in if the decedent made any transfer under Internal Revenue Code sections 2035, 2036, 2037 or 2038 in which an asset has been excluded from the gross estate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Fill in if during the decedent’s lifetime any gifts were made in excess of the annual exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a Fill in if U.S. Form 709 was filed with the IRS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b Fill in if line 9 of U.S. Form 706 (with a revision date of July 1999) is more than 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Fill in if the estate elects to make a Qualified Terminable Interest Property (QTIP) deduction under Internal Revenue Code Section 2056(a). . . . . . 18 Fill in if the decedent was ever the beneficiary of a QTIP trust for which a deduction was claimed by the estate of a pre-deceased spouse under Internal Revenue Code section 2056(b)(7) and which is not reported on this return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Fill in if the estate elects alternate valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Fill in if the estate elects special use valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 1. Tentative Massachusetts estate tax 01 Total gross estate (from page 1, line 1 of U.S. Form 706 with a revision date of July 1999 or from Part 5, line 12 of this return). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 02 Total allowable deductions (from page 1, line 2 of U.S. Form 706 with a revision date of July 1999 or from Part 6, line 11 of this return). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 03 Subtract line 2 from line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 04 Adjusted taxable gifts (from page 1, line 4 of U.S. Form 706 with a revision date of July 1999). . . . . . . . . . . . . . . . . . . . . 4 05 Add lines 3 and 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 06 Total gift tax payable (from page 1, line 9 of U.S. Form 706 with a revision date of July 1999). . . . . . . . . . . . . . . . . . . . . . 6 07 Credit for state death taxes (from page 1, line 15 of U.S. Form 706 with a revision date of July 1999). . . . . . . . . . . . . . . 7 Part 2. Computation of tax for estate of Massachusetts resident decedent with property in another state 01 Total gross estate, wherever situated. Enter the amount from Part 1, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 02 Credit for state death taxes. Enter amount from Part 1, line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 03 Estate or inheritance taxes actually paid to other states. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 04 Gross value of real estate and tangible personal property in other states. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 05 Percentage of estate in other states. Divide line 4 by line 1. Note: Complete computation to six decimal places. . . . . . . 5 06 Prorated credit. Multiply line 2 by line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 07 Deduction allowable for taxes paid to other states. Enter the smaller of line 3 or line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 08 Massachusetts estate tax. Subtract line 7 from line 2. Enter here and in Part 4, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Rev. 10/18 FORM M-706, PAGE 3 Name of decedent Date of death (mm/dd/yyyy) Social Security number 3 3 3 Part 3. Computation of tax for estate of nonresident decedent with Massachusetts property 01 Total gross estate, wherever situated. Enter the amount from Part 1, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 02 Credit for state death taxes. Enter the amount from Part 1, line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 03 Gross value of real estate and tangible personal property in Massachusetts. Enter the total reported on Form M-NRA, line 26. Do not deduct the value of any mortgage or lien. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 04 Percentage of estate in Massachusetts. Divide line 3 by line 1. Note: Complete computation to six decimal places. . . . . 4 05 Massachusetts nonresident estate tax. Multiply line 2 by line 4. Enter result here and in Part 4, line 1. . . . . . . . . . . . . . . 5 Part 4. Massachusetts estate tax due 01 Massachusetts estate tax. Enter the amount from Part 1, line 7; Part 2, line 8; or Part 3, line 5, whichever applies. . . . . 1 02 Late file and/or late pay penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 03 Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 04 Total amount due. Add lines 1 through 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 05 Payments made with extension. Attach a copy of Form M-4768. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 06 Other amounts previously paid. Attach copies of any prior filings with payment dates and amounts. . . . . . . . . . . . . . . . . 6 07 Total payments. Add lines 5 and 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 08 Overpayment. If line 4 is smaller than line 7, subtract line 4 from line 7. This is the amount of your refund. If line 4 is larger than line 7, omit line 8 and complete line 9. If lines 4 and 7 are equal, enter 0 in line 8 and omit line 9. . . . . . . . . . 8 09 Balance due. If line 4 is larger than line 7, subtract line 7 from line 4. This is the amount of the payment due at time of filing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Part 5. Total gross estate. Schedule references are to the schedules of the U.S. Form 706 with a revision date of July 1999 which must be completed and submitted with this return whether or not a current federal estate tax return, U.S. Form 706, is required to be filed. Alternate value Value at date of death 01 Schedule A: Real estate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 02 Schedule B: Stocks and bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 03 Schedule C: Mortgages, notes, and cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 04 Schedule D: Insurance on decedent’s life (attach Form(s) 712). . . . . . . . . . . . . . . . . . . . . . . . . 4 05 Schedule E: Jointly owned property (attach Form(s) 712 for life insurance). . . . . . . . . . . . . . . 5 06 Schedule F: Other miscellaneous property (attach Form(s) 712 for life insurance). . . . . . . . . . 6 07 Schedule G: Transfers during decedent’s life (attach Form(s) 712 for life insurance). . . . . . . . 7 08 Schedule H: Powers of appointment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 09 Schedule I: Annuities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 Total gross estate (add lines 1 through 9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 Schedule U: Qualified conservation easement exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Total gross estate less exclusion (subtract line 11 from line 10). Enter here and on line 1 of Part 1, Tentative Massachusetts estate tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Rev. 10/18 FORM M-706, PAGE 4 Name of decedent Date of death (mm/dd/yyyy) Social Security number 3 3 3 Part 6. Total allowable deductions. Schedule references are to the schedules of the U.S. Form 706 with a revision date of July 1999 which must be completed and submitted with this return whether or not a current federal estate tax return, U.S. Form 706, is required to be filed. 01 Schedule J: Funeral expenses and expenses incurred in administering property subject to claims. . . . . . . . . . . . . . . . . . 1 02 Schedule K: Debts of the decedent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 03 Schedule K: Mortgages and liens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 04 Add lines 1 through 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 05 Amount of allowable deduction from line 4 (see IRC Section 2053(c)). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 06 Schedule L: Net losses during administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 07 Schedule L: Expenses incurred in administering property not subject to claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 08 Schedule M: Bequests, etc. to surviving spouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 09 Schedule O: Charitable, public and similar gifts and bequests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 Schedule T: Qualified family-owned business interest deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 Total allowable deductions (add lines 5 through 10). Enter here and on line 2 of Part 1, Tentative Massachusetts estate tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Rev. 10/18 Rev. 10/18 a. Property street address 4. 3. 2. 1. d. Certificate of title number d. Certificate of title number d. Certificate of title number d. Certificate of title number e. Date of deed (mm/dd/yyyy) a. Property street address e. Date of deed (mm/dd/yyyy) a. Property street address e. Date of deed (mm/dd/yyyy) a. Property street address e. Date of deed (mm/dd/yyyy) f. Registry in which deed was recorded f. Registry in which deed was recorded f. Registry in which deed was recorded f. Registry in which deed was recorded g. Book number of deed b. City/town g. Book number of deed b. City/town g. Book number of deed b. City/town g. Book number of deed b. City/town 3 3 c. Zip code h. Page number of deed c. Zip code h. Page number of deed c. Zip code h. Page number of deed c. Zip code h. Page number of deed Complete the table below for each property in which the decedent had an interest. Social Security number Date of death (mm/dd/yyyy) Part 7. Real estate subject to Massachusetts estate tax lien. Name of decedent FORM M-706, PAGE 5 6 General Information Note: All references to the Internal Revenue Code, the Code or any section of the Code refer to the Internal Revenue Code in effect on December 31, 2000. All references to the federal Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return or to the Instructions for Form 706 refer to the July 1999 revisions of the federal estate tax return and the instructions. United States Estate (and Generation-Skipping Transfer) Tax Return and is entered on line 15 of that form. Portions of the July 1999 revision of the federal Form 706 are not necessary for the computation of the credit for state death taxes and need not be completed. Completion of the following portions of the July 1999 revision of the federal Form 706 is not required: Recent Changes • lines 16 through 27 on page 1; • The Form M-706 has been revised, and can now be filed by entering information electronically through MassTaxConnect. Filing through MassTaxConnect will result in faster processing, and a quicker generation of the Massachusetts Estate Closing Letter and the Certificate Releasing Massachusetts Estate Tax Lien. • the computation of the credit for federal gift taxes on pre-1977 gifts (section 2012); • The Power of Attorney sections on both the M-706 and M-4422 have been eliminated. In order to grant a Power of Attorney, Form M-2848 must be filed. • Schedule P, Credit for Foreign Death Taxes; • Form(s) 706-CE, Certificate of Payment of Foreign Death Tax; • Schedule Q, Credit for Tax on Prior Transfers; and • Schedule R, Generation-Skipping Transfer Tax • The Form M-4768 has been modified to accommodate applications for an extension of time to file and an extension of time to pay. The M-4768A has been eliminated. The requirements to qualify for a valid extension of time to file and to pay remain unchanged. The credit for state death taxes computed on line 15 of the July 1999 revision of the federal Form 706 is entered on line 2 of Part 1 of either Form M-706, Massachusetts Estate Tax Return, or Form M-4422, Application for Certificate Releasing Massachusetts Estate Tax Lien. The credit for state death taxes is used to compute the Massachusetts estate tax. • New lines have been added to the M-706 which correspond directly to line items on the federal Form 706. (July 1999 revision). These are found on page 2, and in Parts 5 and 6. Effect of Goodridge decision on Internal Revenue Code in effect on December 31, 2000 • Form M-792 will no longer need to be attached to the M-706 to effect a release of the Massachusetts Estate Lien. Rather, the information provided on the M-706, Part 7 will be used for this purpose. Once any tax due is paid, and the return is accepted as filed, the Massachusetts Estate Tax Closing Letter, as well the Certificate Releasing Massachusetts Estate Lien, will be issued. Note: It is important that Part 7 of the M-706 be fully completed for each property needing a lien release. Failure to provide all the information necessary will delay issuance of the Certificate Releasing Massachusetts Estate Lien. Beginning May 16, 2004 Massachusetts law permits same-sex couples to marry. See Goodridge v. Department of Public Health, 440 Mass. 309 (2003) and Technical Information Release 04-17, Massachusetts Tax Issues Associated with SameSex Marriages. As a result of the Goodridge decision, the term “spouse”, for Massachusetts estate tax purposes, includes partners in a same-sex marriage. The following three provisions of the December 31, 2000 Internal Revenue Code reflect the Massachusetts estate tax treatment of spouses in a same-sex marriage. Calculating the Estate Tax Effective for dates of death on or after January 1, 2003, the Massachusetts estate tax is an amount computed using the credit for state death taxes allowed by section 2011 of the Internal Revenue Code in effect on December 31, 2000. M.G.L. c. 65C, § 2A. Future changes to the federal estate tax law will not affect the Massachusetts estate tax law, as the reference for Massachusetts estate tax purposes is the Internal Revenue Code in effect on December 31, 2000. The credit for state death taxes is computed using the July 1999 revision of the federal Form 706, Marital deduction. A Massachusetts marital deduction is allowable for property passing from a decedent to his/her surviving same-sex spouse to the same extent that property left to a surviving husband or wife is allowable as a marital deduction provided the requirements of IRC sec. 2056 are met. Joint property. Spouses in a same-sex marriage are allowed to include in the gross estate of a decedent one-half the value of certain joint interests under IRC sec. 2040(b) in the same manner that a husband and wife are permitted this treatment provided the interest in property meets the requirements of IRC sec. 2040(b)(2). Gifts to a third party. IRC sec. 2513 permits a gift made by one spouse to any person to be considered as made one-half by the donor and onehalf by the donor’s spouse. This election is available to spouses in a same-sex marriage. Although Massachusetts does not have a gift tax, this section can affect the application of related estate tax provisions (i.e., the filing threshold). Note: This election requires the filing of pro forma federal gift tax returns with the Massachusetts Estate Tax Unit. Since same-sex marriage is not recognized for federal tax purposes, partners who elect to have a gift of one spouse considered as made one-half by each spouse are required to file pro forma federal Form 709 or Form 709-A in accordance with the filing requirements of IRC sec. 6075(b). A copy of the federal gift tax returns filed with the Internal Revenue Service must also be filed with the pro forma gift tax returns. Privacy Act Notice Under the authority of 42 U.S.C. sec. 405(c)(2)(C)(i), and M.G.L. c. 62C, sec. 5, the Department of Revenue has the right to require an individual to furnish his or her Social Security number on a state tax return. This information is mandatory. The Department of Revenue uses Social Security numbers for taxpayer identification to assist in processing and keeping track of returns and in determining and collecting the proper amount of tax due. Under M.G.L. c. 62C, sec. 40, the taxpayer’s identifying number is required to process a refund of overpaid taxes. Although tax return information is generally confidential pursuant to M.G.L. c. 62C, sec. 21, the Department of Revenue may disclose return information to other taxing authorities and those entities specified in M.G.L. c. 62C, secs. 21, 22 or 23, and as otherwise authorized by law. Massachusetts Filing Requirements The filing thresholds and exempt amounts for Massachusetts estate tax purposes are the following: Year of death 2003. . . . . . . . . . . . . . . . . 2004. . . . . . . . . . . . . . . . . 2005. . . . . . . . . . . . . . . . . 2006 and thereafter. . . . . Threshold/exemption $2,700,000 $2,850,000 $2,950,000 $1,000,000 To determine whether a return must be filed for a decedent’s estate, add: 1. the adjusted taxable gifts (under section 2001(b)) made by the decedent after December 31, 1976; 2. the total specific exemption allowed under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) for gifts made by the decedent after September 8, 1976; and 3. the decedent’s gross estate valued at the date of death. General Information The executor/personal representative must file Form M-706, Massachusetts Estate Tax Return, for any estate in which the sum of the above three items exceeds the exempt amount for the year of the decedent’s death. For further information, see Technical Information Release 02-18, Tax Changes Contained in “An Act Enhancing State Revenues” and Related Acts and DOR Directive 03-2, Issues Arising from Decoupling the Massachusetts Estate Tax from the Federal Estate Tax. In addition, see “Which Estates Must File” on page 2 of the July 1999 revision of the Instructions for Form 706. Beginning with deaths occurring in 2003, the filing thresholds and exempt amounts are lower for Massachusetts estate tax purposes than for federal estate tax purposes. Adjusted taxable gifts affect the Massachusetts filing threshold but are not added to the taxable estate (page 1, line 4 of the July 1999 revision of the federal Form 706) for the computation of the credit for state death taxes. Adjusted taxable gifts are added to the taxable estate for the computation of tentative tax using Table A, the unified rate schedule, that is on page 12 of the July 1999 revision of the Instructions for Form 706. The July 1999 revision of the Instructions for Form 706 has information concerning adjusted taxable gifts in the “Instructions for Part 2. Lines 4 and 9” on page 4 and in the “Worksheet TG-Taxable Gifts Reconciliation” and the “Line 4 WorksheetAdjusted Taxable Gifts Made After 1976” on page 5. See the “Instructions for Part 2. Line 12” for information concerning gifts made after September 8, 1976 and before January 1, 1977. The executor/personal representative of a nonresident decedent who owned or transferred, for less than full and adequate consideration, real estate or tangible personal property located in Massachusetts must file a Form M-706, Massachusetts Estate Tax Return, if the sum of the three items described above exceeds the exempt amount for the year of the decedent’s death. The estate of a nonresident decedent may have a Massachusetts filing requirement even if the value of the Massachusetts real or tangible personal property is less than the exempt amount for the year of the decedent’s death. The estate tax for the estate of a nonresident decedent with Massachusetts property is computed in Part 3 of Form M-706 or Form M-4422. The gross value of the real property and tangible personal property in Massachusetts is used in the calculation. Do not reduce the value of the decedent’s Massachusetts property by the amount of any mortgage or lien. The percentage of the estate in Massachusetts that is computed on line 4 in Part 3 of Form M-706 or Form M-4422 should be calculated to six decimal places. The estate of a nonresident decedent must also file Form M-NRA, Massachusetts Nonresi- dent Decedent Affidavit. The gross values of all real and/or tangible personal property having an actual situs in Massachusetts and included in the decedent’s gross estate are listed on line 26 of Form M-NRA. Definition of an Executor For purposes of the Massachusetts estate tax, an executor/personal representative is defined as the executor/personal representative or administrator of the decedent’s estate, or, if there is no executor/personal representative or administrator appointed, qualified and acting within the Commonwealth, then any person in actual or constructive possession of any property of the decedent. M.G.L. c. 65C, § 6(a). Due Dates and Extensions The Massachusetts estate tax return, with all required documents, and the payment for the tax, if any, must be filed within nine months after the date of the decedent’s death. Requests for an extension of time to file or to pay must be made prior to the due date of the return on Form M-4768, Massachusetts Estate Tax Extension Application. An extension of time to file shall only be granted if the application is accompanied by the estimated tax payment unless the estate is also requesting an extension of time to pay the estate tax. An extension of time to file is void if the total amount paid before the due date of the return is less than 80% of the tax finally determined to be due unless the estate was granted an extension of time to pay the estate tax. Payment of Tax and Filing the Return New: Payments can now be made online at mass. gov/masstaxconnect. Also, credit cards are now accepted for estate tax payments. Payment of the estate tax can also be made by a check payable to the Commonwealth of Massachusetts. Enter the decedent’s full name and Social Security number in the memo portion of the check. The executor/personal representative signing the return is personally liable for payment of any tax shown on the return if it is not otherwise paid. The return and the tax payment should be sent to the Massachusetts Estate Tax Unit, PO Box 7023, Boston, MA 02204. Interest and Penalties Interest on any unpaid tax accrues from the original due date of the return which is nine months after the date of the decedent’s death. The Department determines the quarterly interest rate on underpayments pursuant to M.G.L. c. 62C, § 32. The interest rate for underpayments is the Federal short-term rate determined under Section 7 6621(b) of the Internal Revenue Code, as amended and in effect for the taxable year, plus four percentage points, compounded daily. Effective July 1, 2003, the interest rate on overpayments pursuant to M.G.L. c. 62C, § 40 is the Federal shortterm rate determined under Section 6621(b) of the Internal Revenue Code, as amended and in effect for the taxable year, plus two percentage points, simple interest. The interest rates for underpayments and overpayments may change quarterly and are announced in a quarterly Technical Information Release. The penalty for failure to file Form M-706 by the due date, or within an authorized extension of time, is 1% per month (or fraction thereof) to a maximum of 25% of the tax as finally determined to be due. M.G.L. c. 62C, § 33(a). The penalty for failure to pay the tax reported as due on Form M-706, by the due date, or within an authorized extension of time, is 1% per month (or fraction thereof) to a maximum of 25% of the tax reported to be due. M.G.L. c. 62C, § 33(b). Required Documents All estates that are required to file a Massachusetts estate tax return must submit the following documents: • Form M-706, Massachusetts Estate Tax Return; • the July 1999 revision of the federal Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, with all attachments described in the instructions for that form; and • a check, payable to the Commonwealth of Massachusetts, for the Massachusetts estate tax, if any, that is due with the decedent’s full name and Social Security number entered in the memo portion of the check. New: Payments can now be made online at mass. gov/masstaxconnect. Also, credit cards are now accepted for estate tax payments. Computation of Credit for State Death Taxes (Code § 2011) The credit for state death taxes is computed using the taxable estate from line 3 of the July 1999 revision of the federal Form 706. The federal taxable estate is reduced by $60,000 and the credit is computed using the rates contained in Table B, Computation of Maximum credit for State Death Taxes. Table B and the Table B Worksheet are on page 12 of the July 1999 revision of the Instructions for Form 706. If the credit for state death taxes computed using Table B is greater than the amount computed on line 14 of the federal Form 706, enter the amount from line 14 on line 15. The amount entered on line 15 may not be more than the amount entered on line 14. For further information on the limitation 8 General Information based on the amount of the tax, see IRC § 2011(e). In the calculation of the amount on line 14, the applicable credit amount entered on line 11 of the July 1999 revision of the federal Form 706 is the amount allowed by the December 31, 2000 Code that is different than the applicable credit amount allowed by current federal estate tax law. The applicable credit amounts for the July 1999 revision of the federal Form 706 are the following: Year of death 2003. . . . . . . . . . . . . . . . . 2004. . . . . . . . . . . . . . . . . 2005. . . . . . . . . . . . . . . . . 2006 and thereafter. . . . . Credit amount $229,800 $287,300 $326,300 $345,800 See the instructions for Line 11, Unified Credit (Applicable credit amount) on page 4 of the July 1999 revision of the Instructions for Form 706. Marital Deduction for Qualified Terminable Interest Property (“QTIP”) An estate may elect to claim a marital deduction for Qualified Terminable Interest Property or property interests. The QTIP election allowed by IRC § 2056(b)(7) is made by listing the qualified terminable interest property on Schedule M of the July 1999 revision of the federal Form 706 and deducting its value. In addition, the estate must answer the question regarding the QTIP election on page 2, line 7 of Form M-706, Massachusetts Estate Tax Return. The executor or other fiduciary is not required to make the same QTIP election for federal estate tax purposes in order to make the election for Massachusetts purposes. The “Description of property interests passing to surviving spouse” section of Schedule M of the federal Form 706 must clearly indicate the property for which a Massachusetts only QTIP election is made. The election is irrevocable. See the instructions for Schedule M, Bequests, etc., to Surviving Spouse that begin on page 27 of the July 1999 revision of the federal Form 706. Section 2044 of the December 31, 2000 Code includes the value of the property for which a previous section 2056(b)(7) election was made in the gross estate of the surviving spouse. Section 2044 property is reported on Schedule F, Other Miscellaneous Property of the July 1999 revision of the federal Form 706. As a result of different federal and Massachusetts QTIP elections in the estate of the first-to-die spouse, the value of the QTIP property included in the estate of the second-to-die spouse may be different for federal and Massachusetts estate tax purposes. See the instructions for Schedule F that are on page 20 of the July 1999 revision of the federal Form 706. purchase and sale agreement or the mortgage commitment should be submitted with a letter explaining that the M-706 was previously filed. For further information regarding section 2056(b)(7) property and section 2044 property, see “Issue 1” of DOR Directive 03-2, Issues Arising from Decoupling the Massachusetts Estate Tax from the Federal Estate Tax. New: Form M-4422 can now be filed on line at mass.gov/masstaxconnect. This is the quickest and easiest way to obtain the Massachusetts Certificate Release of Estate Lien. Massachusetts Estate Tax Lien on Real Estate The Commonwealth automatically acquires a lien against all Massachusetts real estate included in a decedent’s gross estate. Unless the tax is paid in full, the lien is valid for 10 years from the decedent’s date of death. M.G.L. c. 65C, § 14. Massachusetts Filing Requirement to Obtain a Release of Lien When the filing of a Massachusetts Estate Tax Return is required to obtain a release of this lien because the size of the estate equals or exceeds the Massachusetts filing threshold for the year of the decedent’s death, an executor must file Form M-706. The filing must be accompanied by a copy of the recorded deed, certificate of title or the probate instrument that created the decedent’s interest and a copy of the July 1999 revision of the federal estate tax return, Form 706, with all attachments described in the instructions for that form. If the estate is required to file a current federal Form 706, submit a copy of that return with any required attachments that are not included with the July 1999 version of the federal Form 706. The estate of a nonresident decedent must submit Form M-NRA, Massachusetts Nonresident Decedent Affidavit. When a sale of real estate or a mortgage commitment is pending, the Estate Tax Unit will expedite the release of the estate tax lien. The estate may request the release of lien on Form M-4422, Application for Certificate Releasing Massachusetts Estate Tax Lien, if (1) the date for filing the estate tax return has not yet passed, and (2) Form M706 cannot be completed prior to the date of the sale, a copy of the purchase and sale agreement or the mortgage commitment must be submitted with the Form M-4422. If the estate is filing the Form M-706 and a sale of real estate or a mortgage commitment is pending, a copy of the purchase and sale agreement or the mortgage commitment should be submitted at the time of filing the Form M-706. If the estate previously filed Form M-706 and a sale of real estate or a mortgage commitment is pending, a copy of the Releasing Lien If There Is No Massachusetts Filing Requirement If a Massachusetts Estate Tax Return is not required to be filed because the size of the estate does not equal or exceed the Massachusetts filing threshold for the year of the decedent’s death, an affidavit of the executor or other fiduciary, subscribed to under the pains and penalties of perjury, recorded in the appropriate registry of deeds accurately stating that the gross estate of the decedent does not necessitate a Massachusetts estate tax filing, shall release the gross estate of the lien imposed by M.G.L. c. 65C, § 14. For further information, see “Issue 2” of DOR Directive 03-2, Issues Arising from Decoupling the Massachusetts Estate Tax from the Federal Estate Tax. Report of Federal Estate Tax Changes Federal estate tax changes must be reported within two months of receipt of a final determination (for example, the federal closing letter, agreed upon federal audit changes, agreed upon IRS Appeals Office changes, Tax Court decision, etc.) of the federal estate tax change(s). An amended Form M-706 should be used to report any change(s). The Form M-706 is an “amended” return when the box on page 1 of the return is checked. For further information regarding what constitutes a federal change, see Technical Information Release 99-14, Expanded Definition of “Federal Change.” Attach a copy of the final federal determination and pay any additional Massachusetts estate tax, interest and penalty, if any, due as a result of the change. The change(s) must relate to an entry that was reported on the July 1999 revision of the federal Form 706. If a refund is indicated as a result of the federal estate tax change and a Massachusetts Estate Tax Closing Letter has previously been issued, an amended M-706 must be filed within one year of Line by Line Instructions receipt of the final federal determination. The change(s) must relate to an entry that was reported on the July 1999 revision of the federal Form 706. Part 3. Computation of Tax for Estate of Nonresident Decedent with Massachusetts Property Line 1. Enter the amount from Part 1, line 1. Line by Line Instructions Line 2. Enter the amount from Part 1, line 7. Part 1. Tentative Massachusetts Estate Tax Line 3. Enter the total gross value of all real and/or tangible personal property having an actual situs in Massachusetts and included in the decedent’s gross estate from line 26 of Form MNRA, Massachusetts Nonresident Decedent Affidavit. Do not deduct the value of any mortgage or lien. Line 1. Enter the total value of the decedent’s gross estate from the July 1999 revision of the federal Form 706, page 1, line 1. Do not reduce the gross value by the amount of any property subject to a power of appointment upon which an inheritance tax on future interests has been settled and paid pursuant to M.G.L. c. 65, § 14. Line 2. Enter the total allowable deductions (from page 1, line 2 of U.S. Form 706 with a revised date of July 1999 or from Part 6, line 11 of this return). Line 3. Subtract line 2 from line 1. Line 4. Divide Part 3, line 3 by Part 3, line 1. The result should be computed to six decimal places. Line 5. Multiply Part 3, line 2 by Part 3, line 4. Enter the result in Part 3, line 5 and in Part 4, line 1. Line 4. Adjustable taxable gifts (from page 1, line 4 of U.S. Form 706 with a revised date of July 1999). Part 4. Massachusetts Estate Tax Due Line 5. Add lines 3 and 4. Line 2. Enter the amount of any late file and/or late pay penalties. The penalty for failure to file a tax return by the due date is 1% of the tax due, per month (or fraction thereof) up to a maximum of 25%. The penalty for late payment is 1% of the tax due, per month (or fraction thereof) up to a maximum of 25%. Line 6. Enter the total gift tax payable (from page 1, line 9 of U.S. Form 706 with a revised date of July 1999). Line 7. Credit for state death taxes (from page 1, line 15 of U.S. Form 706 with a revision date of July 1999). Part 2. Computation of Tax for Estate of Massachusetts Resident Decedent with Property in Another State Line 1. Enter the amount from Part 1, line 1. Line 2. Enter the amount from Part 1, line 7. Line 3. Enter the amount of estate or inheritance taxes actually paid to other states that would qualify for the federal estate tax state death tax credit allowed by the December 31, 2000 Internal Revenue Code. Attach documentation of the amount(s) paid. Line 4. Enter the gross value of real estate and tangible personal property situated in other states. Do not reduce the gross value by the amount of any mortgages, liens or debts. Attach a schedule of the non-Massachusetts property and identify the schedule(s) of the July 1999 revision of the federal Form 706 where the non-Massachusetts property is reported. Line 5. Divide Part 2, line 4 by Part 2, line 1. The result should be computed to six decimal places. Line 6. Multiply Part 2, line 2 by Part 2, line 5. Line 7. Enter the smaller of Part 2, line 3 or Part 2, line 6. Line 8. Subtract Part 2, line 7 from Part 2, line 2. Enter the result in Part 2, line 8 and in Part 4, line 1. Line 1. Enter the amount from Part 1, line 7 or Part 2, line 8 or Part 3, line 5, whichever applies. Line 3. Interest on any unpaid tax accrues from the original due date of the return. See “Interest and Penalties” on page 3. Line 4. Add lines 1 through 3. This is the total amount due. Line 5. Enter the total of all previous payments made with any extension(s). Attach a copy of Form M-4768, Application for Estate Tax Extension. Line 6. Enter the total of all previous payments but not payments made with any extension(s). Attach copies of prior filings with payment dates and amounts. Line 7. Add lines 5 and 6. This is the total payments made. Line 8. If line 4 is smaller than line 7, subtract line 4 from line 7. This is the amount of your refund. If line 4 is larger than line 7, omit line 8 and complete line 9. If lines 4 and 7 are equal, enter 0 in line 8 and omit line 9. Line 9. If line 4 is larger than line 7, subtract line 7 from line 4. If there is a balance owed the Commonwealth, make the check payable to the Commonwealth of Massachusetts and enter the decedent’s full name and Social Security number in the memo portion of the check. Include any interest and penalties owed by the estate with the payment. If there is a refund owed the estate, it will be refunded to the estate. 9 Part 5. Total Gross Estate All schedule references are to the schedules of the U.S. Form 706 with a revision date of July 1999. U.S. Form 706 (rev. 1999) must be completed and submitted with this return whether or not a current federal estate tax return, U.S. Form 706, is required to be filed. Part 6. Total Allowable Deductions All schedule references are to the schedules of the U.S. Form 706 with a revision date of July 1999. U.S. Form 706 (rev. 1999) must be completed and submitted with this return whether or not a current federal estate tax return, U.S. Form 706, is required to be filed. Part 7. Real Estate Subject To Massachusetts Estate Tax Lien Complete this table for all Massachusetts property in which the decedent had an interest. Note that this table replaces the Form M-792, Certificate Releasing Massachusetts Estate Tax Lien. Estate Tax Information For further estate tax information, please call the Estate Tax Unit at (617) 887-6930. All estate tax forms and instructions are available on the Department’s website. In addition, Technical Information Releases and Directives issued by the Department of Revenue are published at the Rulings and Regulations section of the Department’s website: www.mass.gov/dor.
Extracted from PDF file 2023-massachusetts-form-m-706.pdf, last modified February 2021

More about the Massachusetts Form M-706 Estate Tax Tax Return TY 2023

We last updated the Estate Tax Return in February 2024, so this is the latest version of Form M-706, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form M-706 directly from TaxFormFinder. You can print other Massachusetts tax forms here.


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Other Massachusetts Estate Tax Forms:

TaxFormFinder has an additional 126 Massachusetts income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form M-4422 Application for Certificate Releasing Massachusetts Estate Tax Lien
Form M-4768 Massachusetts Estate Tax Extension Application
Form M-706 Estate Tax Return

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Form Sources:

Massachusetts usually releases forms for the current tax year between January and April. We last updated Massachusetts Form M-706 from the Department of Revenue in February 2024.

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Form M-706 is a Massachusetts Estate Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.

About the Estate Tax

The IRS, and many states, impose an estate tax on the transfer of cash and property between a decedent and their beneficiaries. These taxes generally only apply to estates over a certain size threshold, generally several million dollars, and therefore only affects the largest few percent of estates in the United States.

Historical Past-Year Versions of Massachusetts Form M-706

We have a total of seven past-year versions of Form M-706 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:



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