504NR: Fiduciary Computation of Maryland Modification for a Nonresident Fiduciary (2025)
Maryland · Comptroller of Maryland · Used for tax years 2025
Maryland Form 504NR calculates income tax for a nonresident fiduciary. It allocates income, deductions, and Maryland modifications between Maryland and non-Maryland sources and calculates the Maryland tax and special nonresident tax reported on Form 504.
Who files this form
Form 504NR is used for the Maryland fiduciary nonresident income tax calculation. It must always be submitted with Form 504 when a nonresident fiduciary return is filed.
What you'll need
Have these forms and details ready:
- Completed federal Form 1041. Maryland uses information from this return to determine the tax due.
- Maryland Form 504. The checklist recommends starting it before Form 504NR because several amounts come from Form 504.
- The estate or trust's nine-digit Federal Employer Identification Number (FEIN), its name, and the fiduciary's name and title.
- Income, deduction, and distribution details needed to separate Maryland and non-Maryland amounts into distributable and non-distributable income.
- The Fiduciary Tax Rate Schedule (12A), referenced for calculating line 19.
- If reporting non-Maryland Electing Small Business Trust (ESBT) income on line 16e, a schedule showing that calculation. Attach this schedule.
How to file
- Complete federal Form 1041 first, and begin Maryland Form 504 before completing Form 504NR.
- If printing entries, use blue or black ink only.
- Complete Part I to reconcile federal income with Maryland and non-Maryland income. Complete Part II to calculate the Maryland tax and special nonresident tax.
- Transfer Form 504NR, line 21 to Form 504, line 11, and Form 504NR, line 22 to Form 504, line 12.
- Continue the calculations on Form 504 and submit Form 504NR with it.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving line 15 incomplete or out of balance. Columns B through E must total Column A. Incorrect totals may lead to an error notice or the return of Form 504.
- Continuing when the forms do not match. Form 504, lines 1 and 2 added together must equal Form 504NR, line 15, Column A. Find any error before continuing.
- Ignoring federal loss limits when allocating income. Maryland and non-Maryland amounts together must reflect any federal loss limitation.
- Putting a nonresident's interest or dividends in the Maryland columns. The checklist says Maryland does not tax this income for a nonresident.
- Applying the non-Maryland factor to ESBT income. Use the alternate method and attach a schedule supporting the non-Maryland ESBT calculation.
- Submitting Form 504 without Form 504NR for a nonresident fiduciary return. The checklist warns that the Comptroller will calculate the tax at the higher resident rate.
Questions people ask
What is the difference between distributable and non-distributable income?
Distributable income has no restrictions on whether it can pass to beneficiaries. Non-distributable income cannot be distributed because of federal or state law, the trust instrument, or other legal documents.
How do I calculate the non-Maryland income factor?
Add line 15, Columns B and C, then divide by line 15, Column A. Enter the result on line 16. If the result is greater than 1, enter 1. If it is less than 0, enter 0.
Where should Maryland-source income distributed to beneficiaries appear?
The checklist says it should appear on the Maryland Schedules K-1 (504) issued to those beneficiaries.
How is the special nonresident tax calculated?
Multiply the Maryland taxable net income on line 17e by 2.25% (0.0225). Enter the result on Form 504NR, line 22 and Form 504, line 12.