COM/RAD-068
MARYLAND
FORM
504D
FIDUCIARY DECLARATION
OF ESTIMATED INCOME
TAX INSTRUCTIONS
2020
Who must file a declaration You must file a declaration of estimated
tax if you are required to file a Maryland fiduciary income tax return
and your taxable income would be expected to develop a tax of more
than $500. You must file a declaration with payment in full within 60
days of receiving $500 or more of income from awards, prizes,
lotteries or raffles, whether paid in cash or property if Maryland and
local tax has not been withheld.
A personal representative of an estate is not required to remit
estimated tax payments for the first two tax years of the estate.
When to file a declaration You must pay at least one-fourth of the
total estimated tax on or before April 15, 2020. The remaining
quarterly payments are due June 15, 2020, September 15, 2020,
and January 15, 2021. You may pay the total estimated tax with
your first payment, if you wish. If you are filing on a fiscal year basis,
each payment is due on the 15th day of the 4th, 6th, 9th and 13th
month following the beginning of the fiscal year.
Overpayment of tax If you overpaid your 2019 income tax (Form
504) you may apply all or part of the overpayment to your 2020
estimated tax. If the overpayment applied equals or exceeds the
estimated tax liability for the first quarterly payment, you are not
required to file the declaration. If the overpayment applied is less than
the estimated tax liability, you should file the declaration and pay the
balance of the first installment. Preprinted vouchers will be mailed to
you for the remaining payments.
How to estimate your 2020 tax The Estimated Tax Worksheet is
designed to develop an estimate of your 2020 Maryland and local
income tax. Be as accurate as you can in forecasting your 2020
income. You may use your 2019 income and tax as a guide, but if
you will receive more income in 2020, you must pay at least 110%
of the tax that was developed for the prior year to avoid interest for
underpayment of estimated tax. For the purpose of estimating,
rounding all amounts to the nearest dollar is recommended.
Nonresident fiduciaries should use the 2019 Form 504 and Form 504NR
to calculate their estimated tax for 2020 or 110% of the tax that was
developed for 2019.
The annualized income installment method used for federal estimated
tax purposes may be used to compute Maryland estimated tax.
Specific instructions:
Line 1.
Total income expected in 2020 is your estimated federal
taxable income.
Line 2.
Federal exemption amount. Enter the exemption amount you
expect to claim on your federal fiduciary income tax return.
Line 4.
Net modifications. Fiduciaries are permitted those additions
and subtractions allowed individuals. For further information,
see the instructions for Form 502 for resident individuals or
Form 505 for nonresident individuals. Only the fiduciary’s
allocable portion should be used.
Line 6.
Nonresident beneficiary deduction. If any beneficiaries of the
trust are nonresident individuals or corporations not doing
business in this state, enter on this line the total income from
intangible personal property less allocable expenses which
you expect to accumulate (and not distribute) during the tax
year for their benefit.
Line 8.
Maryland exemption. The Maryland exemption allowed to a
personal representative is $600. A fiduciary other than a
personal representative is allowed $200.
Line 10.
Maryland fiduciary income tax. Compute your tax on the
amount on line 9 using the following tax rate schedule:
If taxable amount on line 9 is: Maryland Tax is:
Over: but not over:
$0 $1,000 2.00% of the amount on line 9
$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 11. Local or special nonresident tax. Maryland counties and
Baltimore City levy an income tax on residents which is a
percentage of taxable net income. Using the following
criteria, determine to which city, county or local taxing
jurisdiction the fiduciary must pay the local income tax.
1. A personal representative should use the rate for the
jurisdiction in which the decedent was domiciled on the date
of death.
2. Other fiduciaries should use the rate for the jurisdiction in
which the trust was created or is principally administered.
The amount you entered on line 9 is your taxable net
income. Multiply that by your local tax rate using the
following chart and enter on line 11.
Subdivision Rate Subdivision Rate
Baltimore City .0320 Harford County .0306
Allegany County .0305 Howard County .0320
Anne Arundel County .0281 Kent County
.0320
Baltimore County .0320 Montgomery County .0320
Calvert County .0300 Prince George's County .0320
Caroline County .0320 Queen Anne's County .0320
Carroll County .0303 St. Mary's County
.0317
Cecil County .0300 Somerset County .0320
Charles County .0303 Talbot County .0240
Dorchester County .0320 Washington County .0320
Frederick County .0296 Wicomico County .0320
Garrett County .0265 Worcester County .0225
Nonresident Fiduciaries Use .0225
Changes in income Your situation may not require you t
o file a
declaration on April 15, 2020. However, a large increase in income
after that date may require you to file a declaration. If at any time
during the year you need to amend your original declaration, simply
increase or decrease the remaining payments.
Filing a return instead of the fourth payment Instead of making
the fourth declaration payment on or before January 15, 2021, you
may file your 2020 fiduciary income tax return provided you file on or
before January 31, 2021, and pay in full with the return any
balance of tax due.
Forms and information Declaration of estimated tax forms for
fiduciaries and any additional information may be obtained from www.
marylandtaxes.gov or any branch office. You may also call 1-800-
638-2937 or from Central Maryland 410-260-7980.
Payment instructions Make your check or money order payable to
the Comptroller of Maryland. Put your FEIN on your check. Do not
send cash.
Mailing instructions Mail your declaration of estimated fiduciary
income tax to:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, Maryland 21411-0001
Penalties and interest If you are required by law to file a declaration
of estimated tax for any tax year and you either (1) fail to file on the
date prescribed, (2) fail to pay the installment or installments when due
or (3) estimate a tax less than 90% of the developed tax shown on the
return for the current tax year and which estimate was less than 110%
of the tax that was developed for the prior year, you will be subject to
the penalties and interest as provided by law for failure to file a return
and failure to pay tax when due.
