Fiduciaries

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").

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:

• the local income tax; OR
• the special nonresident tax.

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:

• the trust was created, or consists of property transferred, by the will of a decedent who was domiciled in Maryland on the date of the decedent's death;
• the creator or grantor of the trust is a current Maryland resident; OR
• the trust is principally administered in Maryland.

If none of the above is applicable, then the fiduciary is considered a nonresident and is subject to the Maryland special nonresident tax.

Form 504 and Form 504NR

Both a resident and a nonresident fiduciary 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. At this time, fiduciary tax returns cannot be filed electronically.

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.

The completed forms should be mailed to:

Comptroller of Maryland
Revenue Administration Division
Annapolis, Maryland 21411-0001

Extensions

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. Fiscal year taxpayers must file the extension request by the 15th day of the fourth month following the close of the taxable year.

Additional Information

Administrative Release 16 - Fiduciaries, Including Estates and Trusts

Estate Tax

Taxpayer Assistance