Maryland Maryland Instructions for Fiduciaries

Maryland Instructions for Fiduciaries
Tax Year 2023 Fiduciary Booklet
MARYLAND

2023
Instructions for filing fiduciary income tax returns
for calendar year or any other tax year or period beginning in 2023

Brooke E. Lierman, Comptroller

Read this before filling out your forms!
•

•

The top state income tax rate for resident fiduciaries is 5.75 percent for tax year
2023. For nonresident fiduciaries there is an additional income tax rate of 2.25
percent.
Form 504NR is a required attachment for nonresident fiduciaries who have any
modifications to the federal income, as well as to allow a nonresident fiduciary to
adjust the Maryland tax based upon non-Maryland income received. See instructions
relating to Form 504NR.

Instruction	

Page

1.

WHO MUST FILE?. . . . . . . . . . . .  1

2.

USE OF FEDERAL RETURN. . . . . .  1

3.

NAME, ADDRESS AND OTHER
INFORMATION . . . . . . . . . . . . . .  1

•

Nonresident fiduciary members of a pass-through entity who have had tax paid for
them may claim the credit on Form 504.

4.

TYPE OF ENTITY . . . . . . . . . . . .  2

•

Fiduciaries required to file federal Form 990-T are required to file and pay income tax
to Maryland on their unrelated business income attributable to Maryland sources.

5.

•

A contribution can be made to four programs on your return: The Chesapeake Bay
and Endangered Species Trust Fund, the Developmental Disabilities Services and
Support Fund, the Maryland Cancer Fund and the Fair Campaign Financing Fund.

DECEDENT’S ESTATE
INFORMATION. . . . . . . . . . . . . .  2

6.

RESIDENT STATUS. . . . . . . . . . .  2

•

Resident fiduciaries must include an addition for the amount of income of an Electing
Small Business Trust (ESBT) that is subject to the special taxing rules under Internal
Revenue Code Section 641(c). Nonresident fiduciaries must include this income as
an addition to the extent the ESBT income is allocable to Maryland.

7.

MARYLAND MODIFICATIONS . . . .  3

8.

NONRESIDENT BENEFICIARY
DEDUCTION. . . . . . . . . . . . . . . .  4

9.

INCOME. . . . . . . . . . . . . . . . . . .  5

WHAT'S NEW FOR 2023
• Senate Bill 240: This bill requires an addback of the portion of credit for taxes
paid to another state that represents tax an out-of-state pass-through entity paid
on the member’s pro rata share of income in that state and passed through to the
member.

10. EXEMPTION. . . . . . . . . . . . . . . .  5
11. FIGURE YOUR MARYLAND
TAXABLE INCOME. . . . . . . . . . . .  5
12. MARYLAND TAX . . . . . . . . . . . . .  5

• New Local Tax Brackets:
Anne Arundel Co. The local tax rates for taxable year 2023 are as follows:
(1) .0270 of a fiduciary’s Maryland taxable income of $1 through $50,000; and

13. INSTRUCTIONS FOR MARYLAND
FORM 504NR. . . . . . . . . . . . . . .  5

(2) .0281 of a fiduciary’s Maryland taxable income in excess of $50,000.

14. SPECIAL NONRESIDENT TAX . . . .  6

Frederick Co. The local tax rates for taxable year 2023 are as follows:
(1) .0275 for fiduciaries with Maryland taxable income of $50,000 or less; and
(2) .0296 for all other fiduciaries.
• Senate Bill 721, Acts of 2023: This bill restarts the Federal Security Clearance
Costs tax credit for tax years beginning after Dec. 31, 2022, but only for individuals
or corporations that employ 500 or fewer employees.
• House Bill 1074 / Senate Bill 624, Acts of 2023: This new nonrefundable income
tax credit is available to an individual or business entity that owns a restaurant
in Maryland with annual gross income of at least $400,000 and purchases one or
more FDA-approved automated external defibrillators.
• Filing electronically The State of Maryland participates in the Federal/State
Modernized e-File program to file Fiduciary returns electronically. For the list of
Software Vendors approved for e-filing Maryland returns or for additional program
information, visit marylandtaxes.gov. You may also contact our e-File Helpdesk
by emailing [email protected] or calling 410-260-7753.
FORMS REQUEST

15. LOCAL INCOME TAX . . . . . . . . . .  6
16. TOTAL MARYLAND TAX, LOCAL
TAX AND CONTRIBUTIONS . . . . .  7
17. TAXES PAID AND CREDITS . . . . .  7
18. OVERPAYMENT OR BALANCE DUE.  7
19. TELEPHONE NUMBER, CODE
NUMBER, SIGNATURES AND
ATTACHMENTS. . . . . . . . . . . . . .  8
20. MAILING YOUR RETURN . . . . . . .  9
21. PAYMENT INSTRUCTIONS . . . . . .  9
22. DUE DATE. . . . . . . . . . . . . . . . .  9
23. EXTENSION OF TIME TO FILE. . . .  9

Forms can be requested by mail or by phone as follows:
By Email . . . . . . . . . . . . . . . . . . . . . . . . . [email protected].

24. FISCAL YEAR . . . . . . . . . . . . . . .  9

By phone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410-260-7951

25. AMENDED RETURNS. . . . . . . . . .  9

FREE STATE TAX ASSISTANCE

26. SPECIAL INSTRUCTIONS FOR
BANKRUPTCY ESTATES. . . . . . . .  9

By Email . . . . . . . . . . . . . . . . . . . . . . . . . . . [email protected].
Email your tax questions.

27. QUALIFIED FUNERAL TRUST . . .  10

By phone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-800-MDTAXES
from Central Maryland . . . . . . . . . . . . . . . . . . . . . . . . . . 410-260-7980
February 1 - April 15, 2024, Monday - Friday, 8:30a.m. - 6:00p.m.

28. PRIVACY ACT INFORMATION . . .  10

Use blue or black ink when completing
your forms and checks. To avoid delays
in the processing of your return: do not
print returns on colored paper; do not
write on, staple, or punch holes in the
barcode.

i

MARYLAND
FORM

504

2023

FIDUCIARY TAX RETURN
INSTRUCTIONS

Purpose of Form

Form 504 is used by both resident and nonresident fiduciaries.

Maryland follows federal income tax treatment for fiduciaries of
trusts and estates. Generally, under federal income tax rules,
any income distributed by the fiduciary of the trust or estate
during the tax year is not taxable to the trust or estate.
Instead, that income is taxable to the beneficiary. Any income
not distributed or partially distributed by the fiduciary of the
trust or estate during the tax year is taxable to the fiduciary.
Fiduciary Income Tax Return, Form 504, is used to report and
pay the Maryland income tax on the income taxable to the
fiduciary of the trust or estate.

Who is a fiduciary?
“Fiduciary” means any person by whom the legal title to real or
personal property is held for the use and benefit of another
and includes a trustee of a trust and a personal representative
of an estate.
Although you may be required to file a federal income tax
return, you are not required to file the Maryland fiduciary
return if you are:
1.	An agent holding custody or possession of property owned
by your principal; or,

Maryland taxes the portion of an Electing Small Business Trust
(ESBT), that consists of stock in one or more S corporations,
that is subject to special taxing rules on the federal Form 1041.
See Instructions 4 and 10, as well as Administrative Release 16
for more information.

2.	A guardian.
Instead, file the applicable income tax return of the principal
or, in the case of guardian, the return of the minor or disabled
person.

Due Date
Your return is due by April 15, 2024. If you are a fiscal year
taxpayer, see Instruction 24.

Who is a resident fiduciary?
A personal representative of an estate is considered a resident
fiduciary if the decedent was domiciled in Maryland on the date
of the decedent’s death.

If the due date falls on a Saturday, Sunday or legal holiday, the
return must be filed by the next business day.
Completing the return

Fiduciaries other than personal representatives are considered
residents of Maryland if:

You must write legibly using blue or black ink when completing
your return. DO NOT use pencil or red ink. Submit the original
form, not a photocopy. If no entry is needed for a specific line,
leave blank. Do not enter words such as “none” or “zero” and
do not draw a line to indicate no entry. Failure to follow these
instructions may delay the processing of your return.

1.	The trust was created by the will of a decedent who was
domiciled in Maryland on the date of death;
2.	The trust consists of property transferred by the will of a
decedent who was domiciled in Maryland on the date of
death;

You may round off all cents to the nearest whole dollar. Fifty
cents and above should be rounded to the next higher dollar.
State calculations are rounded to the nearest penny.

3.	The creator or grantor of the trust is a current resident of
Maryland; or,
4.	The trust is principally administered in Maryland.

Penalties

A resident fiduciary is taxable on all its income from whatever
source derived.

There are severe penalties for failing to file a tax return, failing
to pay any tax when due, filing a false or fraudulent return or
making a false certification. The penalties include criminal
fines, imprisonment and a penalty on your taxes. In addition,
interest is charged on amounts not paid when due.

Who is a nonresident fiduciary?
A nonresident fiduciary is a fiduciary who is not included in the
above definition of a resident fiduciary. See Administrative
Release 16 at marylandtaxes.gov.

To collect unpaid taxes, the Comptroller is directed to enter
liens against the salary, wages or property of delinquent taxpayers.

A nonresident fiduciary is taxable only on income from sources
within Maryland. See Instruction 7, Form 504 Schedule A Fiduciary's Share of Maryland Modifications, and complete
Forms 504 and 504NR.

Substitute forms
You may file your Maryland income tax return on a computerprepared or computer-generated substitute form provided the
form is approved in advance by the Revenue Administration
Division. The fact that a software package is available for retail
purchase does not guarantee that it has been approved for
use.

2

You will need information from your federal fiduciary return to
complete your Maryland return. Therefore, complete your federal fiduciary return before you continue beyond this point.
Maryland law requires that you start with the federal taxable
income reported on your federal fiduciary return. All items
reported on your Maryland return are subject to verification,
audit, and revision by the Comptroller’s Office.

For additional information or to see a list of Approved Software
Vendors for Maryland Substitute Tax Forms, visit marylandtaxes.gov.

1

Use of federal return

Who must file?

3

A fiduciary must file a Maryland fiduciary tax return (Form 504)
if the fiduciary:

Name, Address and Other Information

Print or type the required information in the designated areas.
Enter the Federal Employer Identification Number (FEIN) of the
estate or trust in the space provided.

1.	Is required to file a federal fiduciary income tax return or
is exempt from tax under Sections 408(e)(1) or 501 of the
Internal Revenue Code (IRC), but is required to file federal
Form 990-T to report unrelated business taxable income,
and
2.	Has Maryland taxable income.

1

MARYLAND
FORM

504

4

2023

FIDUCIARY TAX RETURN
INSTRUCTIONS
Electing Small Business Trust (ESBT)

Type of entity

Electing Small Business Trust (ESBT) is a trust that computes
tax on the S-portion of income on a separate federal schedule
pursuant to IRC 641(c), instead of including this income in the
trust's federal adjusted gross income. This S-portion of income
is an addition modification. See Instruction 10.

Check the box(es) on the return corresponding to your federal
return. The types of entities are described below:
Decedent’s Estate
An estate of a deceased person is a taxable entity separate
from the decedent. It generally continues to exist until the final
distribution of the assets of the estate is made to the heirs and
other beneficiaries. The income earned from the property of
the estate during the period of administration or settlement
must be accounted for and reported by the estate.

Other
Check box 8 if you are the fiduciary filing for one of the following entities:
	 •	Pooled Income Fund
		A pooled income fund is a split-interest trust with a
remainder interest for a public charity and a life income
interest retained by the donor or for another person. The
property is held in a pool with other pooled income fund
property and does not include any tax-exempt securities.
The income for a retained life interest is figured using the
yearly rate of return earned by the trust.

Simple Trust
A trust may qualify as a simple trust if:
	 1.	The trust instrument requires that all income must be distributed currently;
	 2.	The trust instrument does not provide that any amounts
are to be paid, permanently set aside, or used for charitable purposes; and

	 •	Qualified Disabilities Trust Fund
		A trust created solely for an individual under 65 years of
age who is disabled.

	 3.	The trust does not distribute amounts allocated to the corpus of the trust.

	 •	Alaskan Native Settlement Trust

Because the income is distributed each year, the fiduciary may
be required to file a fiduciary return, but there is no taxable
income. A fiduciary is required to file a fiduciary return if the
trust is a member of a pass-through entity (PTE) and nonresident PTE tax was paid on its behalf.

		A settlement trust created within the meaning of the
Alaska Native Claims Settlement Act.
	 •	Tax-Exempt Trust with Unrelated Business Taxable
Income required to file federal Form 990-T

Complex Trust

		If the fiduciaries for the following entity types are required
to file federal Form 990-T, they are required to file and pay
income tax to Maryland on their unrelated business taxable income attributable to Maryland sources:

If some or none of the income is distributed, the trust is called
a complex trust.
Because the trust is retaining all or part of the income, the
fiduciary must file a fiduciary tax return to determine the taxable income from which to develop both State and local tax
due.

°
°
°
°
°
°
°
°
°

Grantor Trust
Income earned by a grantor trust is taxable to the grantor, not
the beneficiary, if the grantor keeps certain control over the
trust. This rule applies if the property (or income from the
property) put into the trust will or may revert (be returned) to
the grantor or the grantor’s spouse. The grantor is the one who
transferred property to the trust.

5

Generally, a trust is a grantor trust if the grantor has a reversionary interest valued (on the date of transfer) at more than
5% of the value of the transferred property.

Tax-exempt charitable trusts
Individual Retirement Accounts (IRAs)
Simplified Employee Pensions (SEPs)
Simple Retirement Accounts (SIMPLE)
Roth IRAs
C
 overdell Education Savings Accounts (ESAs)
Archer Medical Savings Accounts
Q
 ualified tuition programs (Section 529 Plans)
H
 ealth Savings Accounts (HSAs)

Decedent’s estate information

If the fiduciary return is for a decedent’s estate, enter the following in the appropriate sections for Date of death, Domicile
state of decedent, and Decedent’s Social Security Number.
Check the box if this is the final return. If the return is not for
a calendar year, enter the fiscal year’s beginning and ending
dates at the top of the form.

Bankruptcy Estate
The bankruptcy trustee or debtor-in-possession must file Form
504 for the estate of an individual involved in bankruptcy proceedings under Chapter 7 or 11 of Title 11 of the United States
Code, if the estate was required to file federal Form 1041. See
Instruction 26.

6

Qualified Funeral Trust

Resident status

Read the instructions describing who is a resident fiduciary and
then check the appropriate box.

Maryland recognizes and follows federal law in the treatment of
qualified funeral trusts. Maryland accepts the filing of composite returns for such trusts.

If the return is for a resident fiduciary, provide the entity’s subdivision code, county, and city, town or taxing area.

In most, if not all, cases, the income of each individual trust
account does not exceed $1,000. Therefore, the applicable
state tax rate is 2%, and the applicable local tax rate is the
rate for the situs of the fiduciary filing the composite return.
For example, if the funeral home is located in Baltimore County,
then the local rate for Baltimore County would apply to each
trust included in the composite return. See Instruction 27.

If you are a personal representative of an estate enter the
county (or Baltimore City) in which the decedent was domiciled
on the decedent’s date of death. Also complete the decedent’s
estate information.
If you are a fiduciary, other than a personal representative,
enter the county (or Baltimore City) in which the trust is princi-

2

MARYLAND
FORM

504

2023

FIDUCIARY TAX RETURN
INSTRUCTIONS

of these items are passed on to the beneficiaries on their
Maryland Schedules K-1 (504). Form 504 Schedule A is used
to determine the proper retention and/or allocation of these
items.

pally administered.
If the trust is not principally administered in Maryland, enter
the county (or Baltimore City) in which the decedent was
domiciled if the trust was created by the will of the decedent or
the trust consists of property transferred by the will of the
decedent.

If the fiduciary distributes all of the income for the tax year,
then the fiduciary is not required to complete lines 1 through
10g of Form 504 Schedule A. If the fiduciary makes no distribution of income (i.e. retains 100%), complete lines 1 through 8
of Form 504 Schedule A, and enter the amount from line 8 of
Form 504 Schedule A on line 5 of page 1 of Form 504. If the
fiduciary makes a partial distribution of income during the tax
year, complete lines 1 through 8 of Form 504 Schedule A, as
well as either lines 9a through 9d or 10a through 10g. Enter the
amount from line 9d or 10f of Form 504 Schedule A on line 5 of
page 1 of Form 504.

If the trust is not principally administered in Maryland but the
creator or grantor of the trust is a current resident of
Maryland, enter the county (or Baltimore City) in which the
creator or grantor resides. See List 6A of incorporated cities,
towns and taxing areas to determine the subdivision code.

7

Form 504 Schedule A - Fiduciary's Share Of
Maryland Modifications

Complete Form 504 Schedule A before you begin to complete
Form 504 as the information contained on this schedule is used
to fill in certain lines on page 1 of the return.

Note: A fiduciary may not distribute to any beneficiary any
part of the S-portion of income of an ESBT.
With the exception of the S-portion of income of an ESBT, fiduciaries generally are permitted those additions and subtractions
allowed individuals.

Fiduciary’s Maryland modifications. Certain items must be
added to or subtracted from federal taxable income to determine the Maryland adjusted gross income of a fiduciary. Some

LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND (6A)
Political Subdivision Code
ALLEGANY
COUNTY . . . . . . .  .0100
Town of Barton . . . . . .  0101
Bel Air . . . . . . . . . . . .  0112
Bowling Green  . . . . . .  0115
Cresaptown  . . . . . . . .  0108
City of Cumberland . . .  0102
Ellerslie . . . . . . . . . . .  0113
City of Frostburg . . . . .  0103
LaVale . . . . . . . . . . . .  0110
Town of Lonaconing . . .  0104
Town of Luke  . . . . . . .  0105
McCoole . . . . . . . . . . .  0114
Town of Midland  . . . . .  0106
Mt. Savage . . . . . . . . .  0111
Potomac Park . . . . . . .  0109
Town of Westernport . .  0107
ANNE ARUNDEL
COUNTY . . . . . . . .  0200
City of Annapolis . . . . .  0201
Town of Highland
Beach  . . . . . . . . . .  0203
BALTIMORE
COUNTY . . . . . . . .  0300
(No incorporated cities or
towns)
BALTIMORE CITY . . .  0400
CALVERT
COUNTY . . . . . . . .  0500
Town of Chesapeake
Beach  . . . . . . . . . .  0501
Town of North Beach . .  0502
CAROLINE
COUNTY . . . . . . . .  0600
Town of Denton . . . . . .  0602
Town of Federalsburg . .  0603
Town of Goldsboro . . . .  0604
Town of Greensboro  . .  0605
Town of Henderson . . .  0611
Town of Hillsboro . . . . . 0606
Town of Marydel . . . . .  0607
Town of Preston  . . . . .  0608
Town of Ridgely  . . . . .  0609
Town of Templeville . . .  0610
CARROLL
COUNTY . . . . . . . .  0700
Town of Hampstead . . .  0701

Political Subdivision Code

Political Subdivision Code

Political Subdivision Code

Political Subdivision Code

Town of Manchester . . .  0702
Town of Mt. Airy . . . . .  0703
Town of New Windsor  .  0704
Town of Sykesville . . . .  0705
City of Taneytown . . . .  0706
Town of Union Bridge . .  0707
City of Westminster . . .  0709

GARRETT COUNTY . .  1200
Town of Accident . . . . .  1201
Town of Deer Park . . . .  1203
Town of Friendsville . . .  1204
Town of Grantsville . . .  1205
Town of Kitzmiller . . . .  1206
Town of Loch Lynn
Heights  . . . . . . . . .  1207
Town of Mountain
Lake Park . . . . . . . .  1208
Town of Oakland . . . . .  1209

Town of Oakmont  . . . .  1619
Town of Poolesville  . . .  1608
City of Rockville  . . . . .  1609
Town of Somerset . . . .  1610
City of Takoma Park . . . 1611
Town of Washington
Grove  . . . . . . . . . .  1612

ST. MARY’S
COUNTY . . . . . . . .  1900
Town of Leonardtown . .  1902

CECIL COUNTY . . . . .  0800
Town of Cecilton . . . . .  0801
Town of Charlestown . .  0802
Town of Chesapeake
City . . . . . . . . . . . .  0803
Town of Elkton  . . . . . .  0804
Town of North East  . . .  0805
Town of Perryville . . . .  0806
Town of Port Deposit . .  0807
Town of Rising Sun . . .  0808
CHARLES
COUNTY . . . . . . .  .0900
Town of Indian Head . .  0901
Town of La Plata . . . . .  0902
Port Tobacco Village . . . 0903
DORCHESTER
COUNTY . . . . . . . .  1000
Town of Brookview  . . .  1008
City of Cambridge . . . .  1001
Town of Church Creek .  1002
Town of East
New Market  . . . . . .  1003
Town of Eldorado  . . . .  1007
Town of Galestown  . . .  1009
Town of Hurlock  . . . . .  1004
Town of Secretary . . . .  1005
Town of Vienna . . . . . .  1006
FREDERICK
COUNTY . . . . . . .  .1100
City of Brunswick  . . . .  1101
Town of Burkittsville  . .  1102
Town of Emmitsburg . .  1103
City of Frederick . . . . .  1104
Town of Middletown . . .  1106
Town of Mt. Airy . . . . .  1114
Town of Myersville . . . .  1107
Town of New Market  . .  1108
Village of Rosemont . . .  1113
Town of Thurmont . . .  .1110
Town of Walkersville  .  .1111
Town of Woodsboro . .  .1112

HARFORD COUNTY . .  1300
City of Aberdeen . . . . .  1301
Town of Bel Air . . . . . .  1302
City of Havre de Grace .  1303
HOWARD COUNTY . .  1400
(No incorporated cities or
towns)
KENT COUNTY . . . . .  1500
Town of Betterton . . . .  1501
Town of Chestertown . .  1502
Town of Galena . . . . . .  1503
Town of Millington . . . .  1504
Town of Rock Hall . . . .  1505
MONTGOMERY
COUNTY . . . . . . . .  1600
Town of Barnesville . . .  1601
Town of Brookeville . . .  1602
Town of Chevy Chase . . 1615
Section 3 of the Village
of Chevy Chase . . . .  1614
Section 5 of the Village
of Chevy Chase . . . .  1616
Town of Chevy
Chase View  . . . . . .  1617
Chevy Chase Village  . .  1613
Village of Drummond . .  1623
Village of Friendship
Heights  . . . . . . . . .  1621
City of Gaithersburg  . .  1603
Town of Garrett Park . .  1604
Town of Glen Echo . . . .  1605
Town of Kensington . . .  1606
Town of Laytonsville  . .  1607
Village of Martin’s
Additions . . . . . . . .  1622
Village of North
Chevy Chase  . . . . .  1618

3

PRINCE GEORGE’S
COUNTY . . . . . . . .  1700
Town of Berwyn
Heights  . . . . . . . . .  1701
Town of Bladensburg . .  1702
City of Bowie  . . . . . . .  1704
Town of Brentwood . . .  1705
Town of Capitol Heights 1706
Town of Cheverly  . . . .  1707
City of College Park . . .  1725
Town of Colmar Manor .  1708
Town of Cottage City . .  1709
City of District Heights .  1710
Town of Eagle Harbor . . 1711
Town of Edmonston . . .  1712
Town of Fairmount
Heights  . . . . . . . . .  1713
Town of Forest Heights 1728
City of Glenarden  . . . .  1730
City of Greenbelt . . . . .  1714
City of Hyattsville . . . .  1715
Town of Landover Hills .  1726
City of Laurel . . . . . . .  1716
Town of Morningside . .  1727
City of Mt. Rainier . . . .  1717
City of New Carrollton .  1729
Town of North
Brentwood . . . . . . .  1718
Town of Riverdale Park 1720
City of Seat Pleasant . .  1721
Town of University Park 1723
Town of Upper Marlboro 1724
QUEEN ANNE’S
COUNTY . . . . . . . .  1800
Town of Barclay  . . . . .  1805
Town of Centreville . . .  1801
Town of Church Hill . . .  1802
Town of Millington . . . .  1808
Town of Queen Anne . .  1807
Town of Queenstown . .  1803
Town of Sudlersville . . .  1804
Town of Templeville . . .  1806

SOMERSET
COUNTY . . . . . . . .  2000
City of Crisfield . . . . . .  2001
Town of Princess Anne .  2002
TALBOT
COUNTY . . . . . . . .  2100
Town of Easton . . . . . .  2101
Town of Oxford . . . . . .  2102
Town of Queen Anne . .  2105
Town of St. Michaels . .  2103
Town of Trappe . . . . . .  2104
WASHINGTON
COUNTY . . . . . . . .  2200
Town of Boonsboro . . .  2201
Town of Clearspring . . .  2202
Town of Funkstown . . .  2203
City of Hagerstown . . .  2204
Town of Hancock . . . . .  2205
Town of Keedysville . . .  2206
Town of Sharpsburg . . . 2207
Town of Smithsburg . . .  2208
Town of Williamsport . .  2209
WICOMICO
COUNTY . . . . . . . .  2300
Town of Delmar . . . . . . 2301
City of Fruitland  . . . . .  2308
Town of Hebron . . . . . .  2302
Town of Mardela
Springs  . . . . . . . . .  2303
Town of Pittsville . . . . .  2307
City of Salisbury . . . . .  2304
Town of Sharptown . . .  2305
Town of Willards . . . . .  2306
WORCESTER
COUNTY . . . . . . . . . 2400
Town of Berlin . . . . . . .  2401
Town of Ocean City . . .  2402
Pocomoke City  . . . . . .  2403
Town of Snow Hill . . . .  2404

MARYLAND
FORM

504

2023

FIDUCIARY TAX RETURN
INSTRUCTIONS

Income from U.S. Government obligations. Enter on line 5
of Form 504 Schedule A interest from U.S. Savings Bonds and
other U.S. obligations. Capital gains from the sale or exchange
of U.S. obligations should be included as well. Dividends from
mutual funds that invest in U.S. Government obligations should
also be included on this line; however, only that portion of dividends attributable to interest from U.S. Government obligations may be subtracted. You cannot subtract income from
Government National Mortgage Association securities. See
Administrative Release 10 and 13.

Lines 1 through 8 of Form 504 Schedule A
For resident fiduciaries, the addition and subtraction modifications to income provided in Form 502 instruction booklet for
resident individuals apply. For nonresident fiduciaries, the addition and subtraction modifications to income provided in the
Nonresident Income Tax Return Instructions apply. For a nonresident fiduciary:
•	 Any income derived from real property or tangible personal
property located in Maryland;
•	 Income derived from a business wholly or partially carried on
in Maryland and in which the trust or estate is a partner,
member, or shareholder of the pass-through entity (a business entity taxable at the federal level as partnership or S
corporation);

Other subtractions. Include on line 6 of Form 504 Schedule
A any other Maryland subtractions that may be claimed. Attach
a statement explaining the subtractions that are included on
this line.
NOTE: Non-Maryland source income included in the federal
taxable income of a fiduciary is not a subtraction modification
on Form 504. For a nonresident fiduciary, non-Maryland source
income is excluded from the Maryland taxable income calculation on Form 504NR. See Instruction 13.

•	 Income from an occupation, profession or trade wholly or
partially carried on in Maryland; and
•	 Income from Maryland State Lottery prizes or winnings from
any other wagering is taxable in Maryland. In addition, a
nonresident fiduciary can only claim losses generated in
Maryland.

Fiduciary’s share of net Maryland modifications
Only the fiduciary’s allocable portion of the Maryland modifications should be used. Complete lines 1 through 8, and lines 9a
through 9d or lines 10a through 10g to determine this amount.

Addition Modifications include but are not limited to the following:
Interest on state and local obligations other than
Maryland. Resident fiduciaries must enter on line 1 the total
amount of interest received (less related expenses) on obligations of any state or political subdivision thereof (except the
State of Maryland and its political subdivisions).

Note: You may choose either Method 1 or 2 – you may not use
both methods.
Method 1, (Formula Method). Line 9a. Enter the federal distributable net income (DNI) from federal Form 1041.
Line 9b. Enter the fiduciary’s share of DNI (that portion of the
DNI that was not deducted or distributed to the beneficiaries).

Income taxes deducted on federal return. All fiduciaries
must enter on line 2 the total of income taxes imposed by the
State of Maryland, any political subdivision thereof, any other
state or subdivision of any other state, or the District of
Columbia to the extent included on line 11 of the federal Form
1041.

Line 9c. Divide the fiduciary’s share of the DNI (line 9b) by the
DNI (line 9a) to determine the fiduciary’s percentage of the
DNI and enter the result on line 9c.
Line 9d. Multiply the fiduciary’s percentage of DNI (line 9c) by
the net Maryland modification on line 8 of Form 504 Schedule
A to compute the fiduciary’s share of net Maryland modifications. Enter the result on line 9d and on Form 504, line 5 on
page 1.

Other additions. Include on line 3 of Form 504 Schedule A
any other Maryland additions that must be reported. Attach a
statement explaining the additions that are included on this
line. Do not include income from an Electing Small Business
Trust (ESBT) as an addition on Form 504 Schedule A.

Method 2, (Alternative Method). Lines 10a through 10e
allocate the net Maryland modifications on line 8 of Form 504
Schedule A to the beneficiaries in accordance with the allocation of income to the beneficiaries. If the estate or trust has
more than four (4) beneficiaries, attach an additional sheet
providing the additional beneficiaries’ allocations; the total
from the allocations on the attached sheet is entered on line
10e.

Resident fiduciary members of pass-through entities that are
taxed on net income at the entity level in another state.
For this addition to apply, the resident fiduciary must be
a member of a pass-through entity that (1) pays tax at
the entity level in another state and (2) deducts the tax
paid to the other state in determining its (the pass-through
entity’s) income under the Internal Revenue Code. A fiduciary
member of such a pass-through entity who claims a credit for
taxes paid to another state on form 502CR, Part A, must
include in the addition modification the portion of the credit for
taxes paid to another state that represents tax the out-of-state
pass-through entity paid on the member’s pro rata share of
income in that state and passed through to the member. For
more information, see Administrative Release 42.

Line 10f. Enter the net Maryland modifications on line 8 of
Form 504 Schedule A allocated to the fiduciary.
Line 10g. Enter the total from lines 10a through 10f, Column
(C) on line 10g, this total must equal the net Maryland modifications reported on line 8 of Form 504 Schedule A.

8

Capital losses from sale of certain trust property. For a
resident fiduciary, include on line 3 any capital loss derived
from the sale or other disposition of intangible personal property that is held in trust, if the proceeds are added to the principal of the trust, and if all the remaindermen in being are nonresidents during the entire tax year or corporations not doing
business in Maryland.

Nonresident beneficiary deduction

Non-Maryland loss. For a nonresident fiduciary, include on
line 3 of Form 504 Schedule A net non-Maryland loss.

Nonresident individuals who have intangible income from
sources within Maryland are not subject to tax on such income
in Maryland. There are some fiduciaries that accumulate intangible income in the trust to be distributed later to nonresident
beneficiaries. Because this income is not taxable to a nonresident, there is a provision that permits the fiduciary to subtract
intangible income accumulated for later distribution to a nonresident beneficiary.

Subtraction Modifications include but are not limited to the
following:

A fiduciary with a nonresident beneficiary may enter such
income on line 11 of Form 504 Schedule A, to the extent

4

MARYLAND
FORM

504

2023

FIDUCIARY TAX RETURN
INSTRUCTIONS

K-1 (510/511), Part D, Lines 2 and 4 on Line 1.

included in the federal taxable income of the fiduciary, if the
income is derived from intangible personal property and if that
income is held in trust for the benefit of and being accumulated for a nonresident individual or a corporation that is not
doing business in Maryland.

All items reported on the Maryland return are subject to verification, audit, and revision by the Comptroller’s Office.

10

	 Exemption, Electing Small Business Income and 	
	 Standard & Itemized Deduction

A fiduciary with a nonresident beneficiary may also enter on
line 11 of Form 504 Schedule A, to the extent included in the
federal taxable income of the resident fiduciary, capital gain
income derived from the sale or other disposition of intangible
personal property if that income is held in trust; if the proceeds from that sale or other disposition of the intangible personal property are added to the principal of the trust; and if all
of the remaindermen of the trust in being are nonresidents
during the entire tax year or corporations not doing business in
Maryland.

On line 2 of Form 504, enter the amount of exemption that
was claimed on the federal return.
Enter on line 3 the amount of income of the ESBT that consists
of stock in one or more S corporations subject to the special
taxing rules under IRC Section 641(c). This is the portion of
income upon which a tax was calculated and carried to federal
Form 1041, Schedule G, and identified as attributable to
Section 641(c). Attach a schedule or statement to Form
504 showing computation of this income. Do not allocate or prorate this income.

The amount that is included on line 11 of Form 504 Schedule A
must actually be for the benefit of and attributable exclusively
to the nonresident beneficiary or corporation not doing business in Maryland for which the nonresident beneficiary subtraction is being claimed. Also, the remaindermen for which the
nonresident beneficiary subtraction is being claimed cannot be
unborn or unascertained persons or persons with contingent
interests. In addition, the nonresident beneficiary cannot possess an inter vivos power of appointment over such income,
nor can the fiduciary possess a discretionary power to distribute such income of the trust to themselves, unless such discretionary power is limited to ascertainable standards as defined
by Section 2041(b)(1)(A) of the Internal Revenue Code.

Enter on Form 504, line 4, the sum of lines 1 through 3.
A Maryland exemption of $600 is allowed for a personal representative filing for a decedent’s estate (entity type 1). A fiduciary other than a personal representative (entity types 2
through 8) may deduct $200 as an exemption. These Maryland
exemptions are claimed on Form 504, line 9.
The fiduciary is NOT allowed a standard deduction or itemized
deductions.

11

	 Figure your Maryland net taxable income

Do not enter on line 11 of Form 504 Schedule A income that
has been distributed. Line 11 is to be used only when income
from intangible personal property is accumulated for a nonresident beneficiary. If line 11 is greater than zero, attach to
Form 504 a copy of the federal Form 1041 and all schedules relating to the type(s) and source(s) of income
included on line 11. Also, attach Form 504NBD listing all
beneficiaries, their domiciliary addresses and applicable tax
identification numbers, whether they are income beneficiaries,
remaindermen or both, and the amount of intangible income
accumulated for each beneficiary. If claiming the deduction on
behalf of remaindermen, the deduction cannot be divided
between resident and nonresident remaindermen. All remain­
dermen must be nonresidents of Maryland. If one remainderman is a Maryland resident, the deduction cannot be claimed.
Identify all persons with a power of appointment over the trust
property. See Administrative Release 16.

Resident and nonresident fiduciaries, complete Form 504 lines
1 through 10. Line 10 is your Maryland net taxable income. For
a nonresident fiduciary, the Maryland net taxable income
from Maryland sources is calculated on Form 504NR, line
17e.

12

	 Maryland tax and nonrefundable tax credits

Compute the tax in accordance with the 2023 FIDUCIARY TAX
RATE SCHEDULE (12A) and enter the tax on line 11.
Nonresident fiduciaries should read and refer to Instructions 7
and 13 for information on Form 504NR before continuing; for
Form 504 line 11, enter the Maryland tax from Form 504NR,
line 21.
If the fiduciary is a resident and must pay income tax to
another state, complete Form 502CR, Part A and Part AA and
enter the result on Form 504, line 14.

Enter on line 12 of Form 504 Schedule A, expenses allocable to
this income. Subtract line 12 from line 11 to arrive at the
amount of the nonresident beneficiary subtraction and enter
this amount on line 13 of Form 504 Schedule A. Enter the
amount from line 13 of Form 504 Schedule A on line 7 of Form
504 page 1.

9

NOTE: You must attach Form 502CR and a copy of the tax
return filed in the other state or locality. If this is not attached,
no credit will be allowed. If any credit is being claimed for
Preservation and Conservation Easements on Form 502CR,
complete Form 502CR, Parts F and AA and enter the result on
line 14. If both credits are applicable, enter the sum on line
14.

Income

Also enter the sum on any nonrefundable Business Income Tax
Credits from Part AAA of Form 504CR on line 15 of Form 504.
Form 504CR and any required certification must be attached to
Form 504 or the requested credit will not be approved.

Enter the figure for federal taxable income from your federal
fiduciary income tax return on line 1 of page 1 of Form 504.
For a fiduciary exempt from taxation under IRC Sections
408(e)(1) or 501, enter on line 1 of Form 504 the fiduciary’s
unrelated business taxable income (as defined under IRC
Section 512.)
Note to members of electing pass-through entities that
file Form 511 A trust that is a member of a pass-through
entity that elects to pay tax on all members' distributive or pro
rata share of income ("electing pass-through entity") must add
back to income the amount of the credit received for the tax
paid by the electing pass-through entity. Enter the total of federal taxable income plus the amounts from Maryland Schedule

5

MARYLAND
FORM

504

2023

FIDUCIARY TAX RETURN
INSTRUCTIONS

2023 Fiduciary Tax Rate Schedule (12A)

Line 16d.	Enter the Income from ESBT from Form 504, line 3

For taxpayers filing as Single, Married Filing Separately, or as
Dependent Taxpayers. This rate is also used for taxpayers filing
as Fiduciaries.
	
If the
Taxable Net Income is:	

Line 16e.	Enter the non-Maryland ESBT income included on
line 16d (attach schedule showing computation).
Line 16f.	 Net Maryland ESBT income. Subtract line 16e from
16d. If less than zero, enter zero.

Maryland Tax is:

Form 504NR, Line 17:

At least:	
but not over:
	
$0	
$1,000		 2.00% of taxable net income
	
$1,000	
$2,000	
$20.00	 plus	 3.00% of excess over	
$1,000
	
$2,000	
$3,000	
$50.00	 plus	 4.00% of excess over	
$2,000
	
$3,000	 $100,000	
$90.00	 plus	 4.75% of excess over	
$3,000
	 $100,000	 $125,000	 $4,697.50	 plus	 5.00% of excess over	 $100,000
	 $125,000	 $150,000	 $5,947.50	 plus	 5.25% of excess over	 $125,000
	 $150,000	 $250,000	 $7,260.00	 plus	 5.50% of excess over	 $150,000
	 $250,000	
--	 $12,760.00	 plus	 5.75% of excess over	 $250,000

Line 17a.	Enter the fiduciary’s share of distributable Maryland
source income or loss from line 15 Column D on line
17a.
Line 17b.	Enter the fiduciary’s share of non-distributable taxable net income from Maryland source from line 15
Column E on line 17b.
Line 17c.	 Add lines 16c, 16f, 17a, and 17b to arrive at the
fiduciary’s Maryland net taxable income before
exemption deduction and enter on line 17c.

13

	 Instructions for Maryland Form 504NR

Maryland Fiduciary Nonresident Income Tax Calculation. Form
504NR must be filed by all nonresident fiduciaries who have:

Line 17d.	Enter the Maryland exemption amount from Form
504, line 9.

	 1.	Any modifications to their federal income, or,

Line 17e.	Subtract line 17d from line 17c. This is the fiduciary’s
Maryland net taxable income. Enter this amount on
line 17e.

	 2.	Income from non-Maryland sources.
Form 504NR is a required attachment to Form 504 for all nonresident fiduciaries meeting the above criteria. Also see the Tax
Preparer's Checklist and instructions for more details on Page 3
of Form 504NR.

Form 504NR, Line 18. Enter the taxable net income from
Form 504, line 10.
Form 504NR, Line 19. Calculate the tax on this amount using
Tax Rate Schedule 12A in Instruction 12.

Part I – Reconciliation of Maryland and Federal Income
(Loss)

Form 504NR, Line 20. Calculate the Maryland Nonresident
Factor by dividing the amount on line 17e by line 18. Carry to
six decimal places.

On Form 504NR, complete lines 1 through 14 of the Federal
Income (Loss) column (Column A) using the figures from your
federal fiduciary income tax return. Column (A) of line 14 on
Form 504NR should equal the sum of lines 1 and 2 on Form
504. Enter in the Non-Maryland source columns (Columns B
and C) all income or loss from non-Maryland sources. Enter in
the Maryland source columns (Columns D and E) all income or
loss from Maryland sources.

Form 504NR, Line 21. Multiply line 20 by the tax shown on
line 19 to arrive at the Maryland tax. Also enter this tax
amount on line 11 of Form 504.
Form 504NR, Line 22. Multiply the taxable net income on
line 17e by 2.25% (0.0225) to calculate the Special
Nonresident tax; also enter this tax amount on line 12 of Form
504.

NOTE: The total Non-Maryland source income plus the total
Maryland source income must equal the total federal income
(loss). The sum of Columns (B) through (E) must equal
Column (A) on Line 14 on Form 504NR.

After you enter the tax amounts from Form 504NR on lines 11
and 12 of Form 504, complete the remainder of Form 504 following the instructions in the booklet.

Form 504NR, Line 15. Add the amounts of income (loss) in
Column (B), line 14 to the income (loss) in Column (C) to
arrive at the total non-Maryland source income (loss). Then,
calculate an income factor by dividing the total non-Maryland
source income (loss) by the federal income (loss); carried to
six decimal places. This factor cannot exceed 1 (100%) and
cannot be less than zero (0%); if greater than 1, enter
1.000000; if less than zero (0), enter 0.

14

	 Special nonresident tax

Nonresident fiduciaries enter on Form 504, line 12, the amount
from Form 504NR, line 22. Resident fiduciaries should enter
-0- on line 12 of Form 504

15

	 Local income tax

Part II – Calculation of Nonresident Maryland Income
Tax

The counties of Maryland and Baltimore City are empowered to
levy a local income tax that is collected by the Comptroller
with the State tax. You must use the local tax rate in
effect for the county that you entered on the front page
of the form. See the LOCAL TAX RATE CHART (15A) and
LOCAL TAX WORKSHEET (15B) (For Anne Arundel
County residents use the ANNE ARUNDEL COUNTY TAX
WORKSHEET (15C)).

Form 504NR, Line 16:
Line 16a.	Enter the fiduciary’s share of the net Maryland modifications from Form 504, line 5.
Line 16b.	Multiply the fiduciary’s share of the net Maryland
modifications (line 16a) by the income factor on line
16 to arrive at the net modification amount attributable to non-Maryland sources. In the alternative,
allocate the fiduciary’s share of the net Maryland
modifications based on the net applicable Maryland
modifications attributable to non-Maryland sources.

If the fiduciary is a resident and completed Form 502CR, Part A
because it paid income tax to another state or locality and
credit for the Maryland local tax exists, enter the result from
Part BB of Form 502CR on Form 504, line 19.

Line 16c.	 The fiduciary’s share of the net Maryland modifications attributable to Maryland sources is the difference between 16a and 16b. Enter this difference on
line 16c.

6

MARYLAND
FORM

504

2023

FIDUCIARY TAX RETURN
INSTRUCTIONS

16

2023 LOCAL TAX RATE CHART (15A)
Subdivision	
Baltimore City. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allegany County.. . . . . . . . . . . . . . . . . . . . . . . . . .
Anne Arundel County.. . . . . . . . . . . . . . . . . . . . .
Baltimore County. . . . . . . . . . . . . . . . . . . . . . . . . .
Calvert County. . . . . . . . . . . . . . . . . . . . . . . . . . .
Caroline County.. . . . . . . . . . . . . . . . . . . . . . . . . .
Carroll County.. . . . . . . . . . . . . . . . . . . . . . . . . . .
Cecil County. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charles County. . . . . . . . . . . . . . . . . . . . . . . . . . .
Dorchester County.. . . . . . . . . . . . . . . . . . . . . . . .
Frederick County.. . . . . . . . . . . . . . . . . . . . . . . .
Garrett County. . . . . . . . . . . . . . . . . . . . . . . . . . .
Harford County. . . . . . . . . . . . . . . . . . . . . . . . . . .
Howard County. . . . . . . . . . . . . . . . . . . . . . . . . . .
Kent County. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Montgomery Count. . . . . . . . . . . . . . . . . . . . . . . .
Prince George’s County. . . . . . . . . . . . . . . . . . . . .
Queen Anne’s County. . . . . . . . . . . . . . . . . . . . . . .
St. Mary’s County. . . . . . . . . . . . . . . . . . . . . . . . .
Somerset County. . . . . . . . . . . . . . . . . . . . . . . . . .
Talbot County . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Washington County . . . . . . . . . . . . . . . . . . . . . . . .
Wicomico County. . . . . . . . . . . . . . . . . . . . . . . . . .
Worcester County . . . . . . . . . . . . . . . . . . . . . . . . .

	 Total Maryland tax, local tax and contributions

Rate
. . .0320
. . .0303
.See below*
. . .0320
. . .0300
. . .0320
. . .0303
. . .0280
. . .0303
. . .0320
.See below**
. . .0265
. . .0306
. . .0320
. . .0320
. . .0320
. . .0320
. . .0320
. . .0300
. . .0320
. . .0240
. . .0295
. . .0320
. . .0225

Add lines 17 and 20, and enter the result on line 21. Add to
your tax any contributions from lines 22, 23, 24 and 25. Enter
the total on line 26.
Chesapeake Bay and Endangered Species Fund
You may contribute any amount you wish to this fund. The
amount contributed will reduce your refund or increase your
balance due.
Developmental Disabilities Services and Support Fund
You may contribute any amount you wish to this fund. The
amount contributed will reduce your refund or increase your
balance due.
Maryland Cancer Fund
You may contribute any amount you wish to this fund. The
amount contributed will reduce your refund or increase your
balance due.
Fair Campaign Financing Fund
You may contribute any amount you wish to this fund. The
amount contributed will reduce your refund or increase your
balance due.

NOTE
* Anne Arundel Co. The local tax rates for taxable year
2023 are as follows:
(1) .0270 of a fiduciary’s Maryland taxable income of
$1 through $50,000; and
(2) .0281 of a fiduciary’s Maryland taxable income in
excess of $50,000.

IMPORTANT: If there are not sufficient credits or other payments to satisfy your tax and the contribution you have designated, the contribution amounts will be reduced. If you have
entered amounts for contribution to multiple funds, any reduction will be applied proportionately.

17

	 Taxes paid and refundable credits

** Frederick Co. The local tax rates for taxable year 2023 are
as follows:
(1) .0275 for fiduciaries with Maryland taxable income
of $50,000 or less; and
(2) .0296 for all other fiduciaries.

Write your taxes paid and refundable tax credits on lines 27-30
of Form 504. Add lines 27 through 30 and enter the total on
line 31.
Taxes paid

LOCAL TAX WORKSHEET (15B)

If Maryland tax was withheld from wages (or other compensation) paid to a decedent’s estate, enter the amount on line 27
and attach the wage and tax statement, or Form 1099.

Multiply the taxable net income by the tax rate from the LOCAL
TAX RATE CHART (15A) for the county in which the fiduciary was a
resident on the last day of the taxable period. Enter the result on
line 18 of Form 504. This is the fiduciary local income tax.

If you participated in a nonresident real estate transaction, you
must report any income tax withheld on your behalf as an estimated payment.

1.	Taxable net income from line 10
of Form 504 . . . . . . . . . . . . . . . . . . . . . . . $ ______________
2.	Local tax rate from Local Tax
Rate Chart . . . . . . . . . . . . . . . . . . . . . . . .

Enter on line 28 the total of Maryland estimated tax payments,
any taxes withheld from a nonresident real estate transaction
and any payment made with a request for an extension of time
to file the return. See instructions on Form 504E.

.0
_______________

3.	Local income tax (Multiply line 1 by line 2.)
Enter this amount on line 18 of Form 504
rounded to the nearest cent or whole dollar.. $ ______________

Credits
If the estate or trust was a member of a pass-through entity
(PTE) doing business in Maryland and the PTE paid nonresident
tax on its behalf, enter the amount on line 29. You must attach
a Maryland Schedule K-1 (510/511) from the PTE showing the
amount of tax paid on behalf of the estate or trust.

ANNE ARUNDEL COUNTY TAX WORKSHEET (15C)
If the
Taxable Net Income is:
At least:

Anne Arundel County Tax is:

This credit may be passed through the nonresident fiduciary
and claimed by the beneficiary on its applicable Maryland
income tax return in an amount proportionate to the distribution of income by the nonresident fiduciary to that beneficiary.

but not over:
$0

$50,000

$50,000

2.70% of taxable net income

---

$1,350

plus 2.81% of excess over $50,000

DO NOT include the amount on line 29 if the fiduciary elects to
pass this credit through to the beneficiaries.
Include the Maryland Schedule K-1 (504), as well as Maryland
Schedule K-1 (510/511) showing the amount of tax paid by the
PTE on behalf of the trust being passed through to the beneficiary. The statement must also include the names and FEINs of
PTEs paying tax.

7

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FORM

504

2023

FIDUCIARY TAX RETURN
INSTRUCTIONS

financial partners, and NACHA any tax return information, such
as your name, and the name(s) as it appears on the bank
account to make the deposit. Complete lines 38a, b, c, and d
of Form 504 if you want us to deposit your refund directly into
your account at a bank or other financial institution (such as a
mutual fund, brokerage firm or credit union) in the United
States.

If the estate or trust participated in a nonresident real estate
transaction as a member of a PTE that paid taxes on its behalf
using Form MW506NRS, report this payment on line 29.
Add the total of business income tax credits from Form 504CR,
Part CCC, Line 11 to Line 30 of Form 504. Complete and submit Form 504CR with Form 504. For additional information
regarding any of the Business Income Tax credits, see the
instructions provided on Form 504CR. Also, add to line 30 any
Heritage Structure Rehabilitation Tax Credit from Form 502S.

Splitting Your Direct Deposit
If you would like to deposit portions of your refund to multiple
accounts, do not complete any direct deposit information on
your return. Instead, you must enter code number 588 on one
of the code number lines on your return, and complete and
attach Form 588.

18

	 Overpayment or balance due

Calculate the Balance Due (line 32 of Form 504) or
Overpayment (line 33 of Form 504).

NOTE: You may not use Form 588 if you are filing Form
502INJ, Injured Spouse Claim Form, or if you plan to deposit
your refund in a bank outside the United States.

Part or all of any overpayment may be applied to 2024 estimated tax by completing line 34. Subtract line 34 from the
overpayment (line 33). This is the amount of the refund.

Individual taxpayers now have the option to use all or part of
their income tax refund to purchase U.S. Series I Savings
Bonds. See Form 588 for additional details.

Underpayment of Estimated Tax
All taxpayers should refer to Form 504UP to determine if they
owe interest because they paid too little estimated tax during
the year.

Check with your financial institution to make sure
your direct deposit will be accepted and to get the
correct routing and account numbers. If you enter
CAUTION the incorrect account or omit any required
information, the State of Maryland will not be
responsible for recovering that refund and/or for making direct deposit payment electronically

!

If you owe interest, complete Form 504UP and write the
amount of interest (line 15 of Form 504UP) in the appropriate
box on line 36 of Form 504. Attach Form 504UP.
	 Generally, you do not owe interest if:
	 a.	You owe less than $500 tax on income which is not subject
to Maryland withholding; or,

Line 38a
Check the appropriate box to identify the type of account that
will be used (checking or savings). You must check one box
only or a refund check will be mailed.

	 b.	Each current year payment, made quarterly as required, is
equal to or more than one-fourth of 110% of last year’s
taxes that were developed; or,

Line 38b

	 c.	You made quarterly payments during the year which equal
90% of this year’s tax; or,

The routing number must be nine digits. If the first two digits
are not 01 through 12 or 21 through 32, the direct deposit will
be rejected and a check sent instead. If you are not sure of the
correct routing number, contact your financial institution.

	 d.	The year ends less than two years after the decedent’s
date of death.
If after completing Form 504UP there is no interest due or you
meet exception “d,” see Instruction 19 for additional information regarding code numbers.

If you are not sure of the correct routing number or if your
check states that it is payable through a financial institution
different from the one at which you have your checking
account, contact your financial institution for the correct routing number.

Interest for Late Filing
Interest is due at the rate of 10.0075% annually or 0.8339%
per month for any month or part of a month that a tax is paid
after the original due date of the 2023 return but before
January 1, 2025. For assistance in calculating interest for tax
paid on or after January 1, 2025, visit marylandtaxes.gov.

Line 38c
The account number can be up to 17 characters (both numbers
and letters). Omit spaces, hyphens and special symbols. Enter
the number from left to right.

-		 Penalty up to 10% may be assessed by the Comptroller of
Maryland for failing to pay any tax, or failing to file a tax
return, when due.

If we are notified by the financial institution that the direct
deposit is not successful, a refund check will be mailed to you.

Total Interest

Have a bank statement for the account available if you contact
us concerning the direct deposit of your refund.

Enter the total interest for underpayment of estimated tax and
interest for late filing on line 36.

Line 38d.
You must indicate the full name as it appears on the bank
account.

Direct Deposit of Refund
To comply with banking and National Automated Clearing
House Association (NACHA) rules, we ask you to indicate by
checking the appropriate box on your return if the state refund
is going to an account outside the United States. If you indicate that this is the case, STOP! do not enter your routing and
account numbers, as the direct deposit option is not available
to you. We will send you a paper check.

Disclosure
By requesting a direct deposit of your Maryland tax refund and
entering your bank account number, routing number, account
type, and name(s) as it appears on your bank account and on
your income tax return, you authorize the Comptroller's
Office to disclose this information regarding your refund
amount to the Maryland State Treasurer's Office (who performs
banking services for the Comptroller's Office).

By choosing direct deposit of your refund and checking the
appropriate box, you authorize the State of Maryland to disclose to your bank, to the State’s depository bank and their

8

MARYLAND
FORM

504

19

2023

FIDUCIARY TAX RETURN
INSTRUCTIONS

21

Telephone number, code numbers, signatures
and attachments

	 ELECTRONIC FILING AND PAYMENT 			
INSTRUCTIONS

Enter your telephone number and sign and date your return.
Be sure to attach all required forms, schedules and statements.

ELECTRONICALLY FILING YOUR RETURN
The fastest way to file your return, and receive your refund is
to file electronically and request direct deposit. If you request
direct deposit on your electronic return, your refund should be
in your bank account within 72 hours of acknowledgment from
the Revenue Administration Division. You may request electronic funds withdrawal (direct debit) payments on your
electronic return.

Code Numbers
IMPORTANT: If you complete Form 504UP and, because of
the timing of the distributions of income, have no interest due,
attach the form to your fiduciary return and write code number
301 on one of the lines marked CODE NUMBER at the bottom
of Form 504.

You may file your return electronically through your personal
computer.

If you use the annualization method to calculate interest for
underpayment of estimated tax, attach Form 504UP to your
fiduciary return and write code number 301 on one of the lines
marked CODE NUMBER at the bottom of Form 504. For the
Revenue Administration Division to recognize your use of this
calculation method, you must enter the code number and
attach the form, even if there is no interest due.

Do not send a paper copy of the return if you electronically filed.
For more information, visit marylandtaxes.gov.
PAYMENT BY CHECK OR MONEY ORDER
Make checks or money orders payable to Comptroller of
Maryland. On your check or money order, in blue or
black ink only, you must include the Federal Employer
Identification Number, tax year, and tax type. Failure to
include this information will delay the processing of
your payment.

If the return is for a decedent’s estate within two years of the
date of death, enter 301 on one of the CODE NUMBER lines.
Do not attach Form 504UP.
Tax Preparers
If another person prepared your return, that person must also
print name and sign the return and enter their Preparer’s Tax
Identification Number (PTIN). The preparer declares that the
return is based on all information required to be reported of
which the preparer has knowledge, under penalties of perjury.
Penalties may be imposed for tax preparers who fail to sign the
tax return and provide their PTIN. At the bottom of the return
at the signature area, we have provided a check box for you to
authorize your preparer to discuss your return with us.

DO NOT SEND CASH.

22

	 Due Date

Returns must be mailed by April 15, 2024, for calendar year
taxpayers. Fiduciaries filing on a fiscal year basis should see
Instruction 24.

23

	 Extension of time to file

Signature and verification
This return must be verified and signed by the individual fiduciary or an authorized officer of a corporate fiduciary. If two or
more individuals act jointly as fiduciaries, the return may be
verified and signed by either.

Follow the instructions on Form 504E to request an automatic
extension of the time to file your 2023 return. Filing this form
extends the time to file your return, but does not extend the
time to pay your taxes. Payment of the expected tax due is
required with Form 504E by April 15, 2024.

Attachments
Be sure to attach wage and tax statements (Forms W-2, W-2G
and 1099(s)) to the front of your return if Maryland tax is withheld. Complete and attach Maryland Schedule K-1 (504) for
each beneficiary. See Administrative Release 16. Also attach all
forms, schedules and statements required by these instructions. Place your check or money order on top of the wage and
tax statements and fasten with one staple on the front of your
tax return.
	 Mail your return

24

	 Fiscal year

You must file your Maryland return using the same tax year
and the same basis (cash or accrual) as you used on your federal return.
To file a fiscal year return, complete the fiscal year information
at the top of Form 504 and print “FY” in bold letters in the
upper left corner of the form. Whenever the term “tax year”
appears in these instructions, fiscal year taxpayers should
understand the term to mean “fiscal year.” Use the 2023 forms
for fiscal years that begin during calendar year 2023. Fiscal
year returns are due on the 15th day of the 4th month following the close of the fiscal year. If you are filing on a fiscal year
basis, file Form 504E by the regular due date of your return.

20

Mail your return to:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, Maryland 21411-0001

25

Private Delivery Services
If you wish to send your items by a private delivery service
(such as FedEx or UPS) instead of the U.S. Postal Service, use
the following address:

	 Amended returns

If you need to change a return that you have already filed, or if
the Internal Revenue Service changes your return, you must
file an amended return.

Private Delivery Service Address:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, Maryland 21411-0001
410-260-7980

NOTE: Changes made as part of an amended return are subject to audit for up to three years from the date the amended
return is filed.

9

MARYLAND
FORM

504

2023

FIDUCIARY TAX RETURN
INSTRUCTIONS

Use Form 504 and Form 504NR, if applicable, to file an
amended return. Be sure to check the AMENDED
RETURN box and draw a line through any barcode on the
front of the return. An explanation must be provided on
page two of the amended Form 504. A copy of the
amended federal return must be attached.

11 of the United States Code. The bankruptcy estate is treated
as a separate taxable entity. A separate taxable entity is not
created when an individual is in a state receivership.
The fiduciary of a Chapter 7 or a Chapter 11 bankruptcy estate
is required to file the estate’s return and must file a Maryland
return if the fiduciary or trustee is required to file a federal
return and has Maryland taxable income. The fiduciary must
use the Maryland Fiduciary Return, Form 504.

Changes to Your Federal Return
If the Internal Revenue Service makes any changes to your
federal return, you must notify the State of Maryland. Send
notification to the Maryland Revenue Administration Division
within 90 days of the final determination of the changes by the
IRS.

For an individual, the fiduciary return is the mechanism for
paying the tax. The calculation is done on the individual
income tax return, Form 502, and the tax is carried to the fiduciary return. The fiduciary of an individual bankrupt debtor
should attach the completed Form 502 to Form 504. Draw a
line through any barcodes on Form 502 and write
“Bankruptcy Estate” in the name and address area.

If you file an amended federal fiduciary return that changes
your fiduciary return, you must file an amended Maryland
return.

A trustee of a corporate debtor or other bankrupt entity, who
has possession of the bankrupt estate by court order or who
holds title to all or substantially all of the property of a bankrupt entity, must file the income tax return for the entity. The
fiduciary would be required to file a Maryland income tax
return, if the fiduciary is obligated to file a federal return on
behalf of the bankrupt entity and also has Maryland taxable
income.

If Your Original Return Showed a Refund
If you expect a refund from your original return, do not file an
amended return until you have received your refund check.
Cash the check. Do not return it. If your amended return
shows a smaller refund, send a check for the difference with
the amended return. If your amended return shows a larger
refund, the Revenue Administration Division will issue an additional refund check.

The fiduciary should attach a notice of the filing of the
bankruptcy estate, which is issued by the applicable
bankruptcy court, to the return.

Additional Information
Do not file an amended return until sufficient time has passed
to allow the original return to be processed. For current year
returns, allow at least six weeks.

27

	 Qualified funeral trusts

Generally, a claim for a refund or overpayment credit must be
filed within three years from the date the original return was
filed or within two years from the date the tax was paid,
whichever is later. An original return filed early is considered
filed on the date it was due.

A fiduciary may file a composite fiduciary income tax return
reporting the income of the funeral trusts administered by that
fiduciary, instead of one fiduciary return for each trust. Check
Entity Type