Audience: Individuals
The Comptroller's Office is dedicated to making the process of filing and paying taxes, simple, safe and efficient. You may have questions before, during or after you file your return. We're here to help. This section supplies the latest information for the fiduciary taxpayer.
Filing your fiduciary tax return doesn't have to be complicated or confusing. This section will help you more easily navigate through the process of filing your returns, making payments and receiving refunds. As always, if you need assistance you can contact our helpful staff or visit one of our local offices. As you navigate through the process use the links at the bottom of each page. The following will get you started in the right direction:
A fiduciary is a person who holds the legal title to real or personal property for the use and benefit of another, and includes a personal representative of a decedent's estate or a trustee of a testamentary or inter vivos trust ("living trust").
Fiduciaries are subject to the Maryland income tax and, dependent upon residency of the decedent, also either the local income tax rate or the special nonresident tax rate.
A fiduciary is subject to the local income tax, if the fiduciary is considered a Maryland resident. A fiduciary of an estate is a Maryland resident if the decedent of the estate was domiciled in Maryland on the date of the decedent's death.
A fiduciary of a trust is a Maryland resident if:
If none of the above is applicable, then the fiduciary is considered a nonresident and is subject to the Maryland special nonresident tax.
The Maryland income tax is imposed on the Maryland taxable income of a fiduciary of an estate or trust. A fiduciary figures the Maryland income tax in much the same manner as an individual.
A fiduciary of an estate or trust is also subject to:
Either tax may be imposed on the Maryland taxable income of a fiduciary of an estate or trust.
A fiduciary is subject to the local income tax, if the fiduciary is considered a Maryland resident. A fiduciary of an estate is a Maryland resident if the decedent of the estate was domiciled in Maryland on the date of the decedent's death.
A fiduciary of a trust is a Maryland resident if:
If none of the above is applicable, then the fiduciary is considered a nonresident and is subject to the Maryland special nonresident tax.
Administrative Release 16 (PDF) - Fiduciaries, including Estates and Trusts
Donations of Conservation Easements
House Bill 187 (Chapter 19, Acts of 2007) and Senate Bill 219
This Act clarifies that the personal representative of an estate may donate a conservation easement on real property if the donation is authorized under the will. A fiduciary, or the trustee of a trust, may donate, or consent to the donation of, a conservation easement on real property if the donation is authorized under the governing instrument. The donation of a conservation easement on real property qualifies as a federal estate tax exclusion.
This Act becomes effective October 1, 2007 and can be applied retroactively to a conservation easement donation from an estate of a decedent who died on or after January 1, 1998.
Income Tax Technical Bulletins/Administrative Releases
Estate-Inheritance-Fiduciary Tax FAQs
Both resident and nonresident fiduciaries who have Maryland taxable income and who are required to file a federal income tax return should use the Fiduciary Income Tax Return Form 504 to report and make payment of any income tax due of the estate or trust. Nonresident fiduciaries must also file Form 504NR which is used to calculate their nonresident tax. Fiduciary tax returns can be filed electronically.
If you are a nonresident who owns and is selling or transferring real property and associated tangible personal property in Maryland, you must make a tax withholding payment to the local Clerk of the Circuit Court or the Maryland Department of Assessments and Taxation (SDAT). The payment must be made before the deed or other instrument of transfer is recorded with the court clerk or filed with SDAT. For more information, see Sales of Real Property by Nonresidents.
For a calendar year estate or trust, the fiduciary must file and pay the income tax on or before April 15 of the next taxable year. For a fiscal year estate or trust, the fiduciary must file and pay the income tax on or before the 15th day of the fourth month following the close of that taxable year.
Completed forms should be filed electronically or mailed to:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, Maryland 21411-0001
A fiduciary may obtain an automatic six-month extension to file Form 504. The fiduciary should complete the worksheet on Form 504E, Application for Extension to File Fiduciary Income Tax Return, to determine whether a tax is due. The extension request must be filed on or before April 15. If the due date falls on a Saturday, Sunday or legal holiday, the return must be filed by the next business day. Fiscal year taxpayers must file the extension request by the 15th day of the fourth month following the close of the taxable year. Filing this form extends the time you can file your return, but does not extend the time to pay your taxes. Payment of the expected tax due is required by April 15.