Maryland Form 504NR, the Fiduciary Nonresident Income Tax Calculation, is the worksheet that a nonresident trustee or personal representative attaches to Form 504 to figure how much of an estate’s or trust’s income Maryland may tax. It exists so a fiduciary who lives outside Maryland pays tax only on income that comes from Maryland sources, not on everything the estate earns.
If you skip this form or fill it in wrong, the Comptroller of Maryland can tax the whole estate as if it were a Maryland resident, hold your refund, or send a bill with interest. The state’s top fiduciary rate reached 6.50% for tax year 2025, and nonresident fiduciaries owe an extra 2.25% special tax on top of that, so a single math error on the allocation lines can cost real money. This guide walks you through the current COM/RAD-319 version of the form, line by line, with named examples you can copy.
In this guide you will learn:
- 🧭 Who must file Form 504NR and how it connects to Form 504 and the federal Form 1041
- 📋 Every document and number to gather before you open the form
- ✍️ How to complete Part I (Columns A–E) and Part II line by line, with sample entries
- 👨👩👧 Three full filled-out walkthroughs for an estate, a trust, and an ESBT
- ⚠️ The mistakes that trigger holds, recalculations, and penalties — and how to dodge them
What the Form Is and Who Must File It
Form 504NR is a one-purpose worksheet. It takes the federal income of an estate or trust, splits it between Maryland sources and non-Maryland sources, and produces two numbers that flow back to Form 504: the Maryland tax on line 21 and the Special Nonresident Tax on line 22. The Comptroller of Maryland receives it, and the authority to tax nonresident fiduciaries comes from the Maryland income tax law in Title 10 of the Tax-General Article.
You must file Form 504NR if you are a nonresident fiduciary. The 2025 Fiduciary Booklet says the form is required for nonresident fiduciaries who have any modifications to federal income, and it is what lets a nonresident fiduciary lower the Maryland tax based on income earned outside Maryland. A fiduciary is any person who holds legal title to property for someone else, which the law in Personal Tax Tip #61 defines to include a trustee of a trust and a personal representative of an estate.
You are a nonresident fiduciary when you do not meet Maryland’s resident tests. A personal representative is a resident fiduciary only if the decedent was domiciled in Maryland at death. A trustee is a resident only if a Maryland-domiciled decedent created the trust by will, the trust holds property transferred by such a will, the grantor currently lives in Maryland, or the trust is principally administered in Maryland. If none of those fit, you are a nonresident, and Maryland taxes you only on Maryland-source income, which is exactly what Form 504NR measures.
Form 504NR never travels alone. It is a required attachment to Form 504, the Fiduciary Income Tax Return. Think of Form 504 as the tax return and Form 504NR as the calculator that feeds two of its lines. The federal Form 1041 sits behind both, because Maryland law starts with the federal taxable income you already reported to the IRS.
Before You Start: Documents and Information You Need
Gather everything below before you write a single number. The form pulls figures straight from your federal return, so missing one item forces you to stop halfway and restart.
- The completed federal Form 1041. Maryland law requires you to finish the federal fiduciary return first because line 1 of Form 504 and Columns A–E of Form 504NR copy figures from it. Without it, you cannot fill in any income line.
- The Federal Employer Identification Number (FEIN) of the estate or trust. This nine-digit number identifies the entity on every page; a wrong FEIN means the Comptroller cannot match your filing.
- The decedent’s date of death and domicile state (for an estate). These set your resident status and your filing county; the wrong domicile can flip you from nonresident to resident.
- Form 504 Schedule A, the Fiduciary’s Share of Maryland Modifications. You complete this before Form 504NR because its line 8 result feeds line 16a; skip it and the modification lines break.
- A source-by-source breakdown of income showing what came from Maryland versus everywhere else. Without this split you cannot fill Columns B–E, which is the heart of the form.
- The income distribution deduction, estate tax deduction, and QBI deduction from the 1041. These appear on lines 12, 13, and 14; leaving one out overstates taxable income.
- Distributable Net Income (DNI) figures if you use the formula method on Schedule A. The fiduciary’s share percentage depends on these; guessing throws off every modification.
- Any ESBT (Electing Small Business Trust) S-portion income computed on the separate federal schedule. Maryland adds this back, and missing it understates Maryland tax and invites a recalculation.
- The Fiduciary Tax Rate Schedule (12A) for the year, used on line 19. Using an old rate schedule produces the wrong tax.
A quick tip: write the income split on scratch paper as a five-column grid (Federal, Non-Maryland Distributable, Non-Maryland Non-distributable, Maryland Distributable, Maryland Non-distributable) before you touch the form. The grid mirrors Columns A–E and makes the reconciliation rule painless.
Where to Get the Form and How to Access It
The official Form 504NR lives on the Comptroller of Maryland’s website. You can pull the current year’s PDF from the Maryland fiduciary forms page, and the matching line-by-line rules sit inside the 2025 Fiduciary Booklet. Always download the version whose tax year matches the return you are filing.
Confirm you have the right version by checking the form code in the lower-left corner. The current form reads COM/RAD-319 with a revision month and year printed beside it, such as 08/24 on the 2024 form. Filing an old revision is a common reason returns get kicked back, because line numbers and rates shift from year to year.
You have three practical ways to get the form. You can download and print the PDF and fill it by hand in blue or black ink. You can use approved tax software, which builds Form 504NR for you as part of the Maryland fiduciary return through the Modernized e-File program. Or you can request a paper copy by emailing taxforms@marylandtaxes.gov or calling 410-260-7951. If you want help reading it, the free state tax line is 1-800-MDTAXES.
One rule applies no matter how you get the form: write in blue or black ink only, never pencil or red. Submit the original, not a photocopy, and do not staple, punch, or write on the barcode. These handling rules come straight from the booklet, and ignoring them delays processing.
Step-by-Step: How to Fill Out Maryland Form 504NR Line by Line
Form 504NR has a top identification block, Part I (the income reconciliation grid on page 1), and Part II (the tax calculation on page 2). Work top to bottom and never skip the reconciliation check between the two parts.
Top Block: Tax Year, FEIN, and Names
What it asks in plain English. The header asks which year the return covers, the entity’s nine-digit FEIN, the name of the estate or trust, and the name and title of the fiduciary.
How to answer it. Enter the calendar year, or fill in the fiscal-year beginning and ending dates if the entity does not use a calendar year. Print the FEIN as nine digits with no extra marks. Write the entity name exactly as it reads on the federal Form 1041, then your name and title on the fiduciary line.
A specific example. Daniel Reyes, Trustee enters FEIN 52-1234567, names the entity Estate of Carol Reyes, and signs the fiduciary line as Daniel Reyes, Personal Representative.
A nuance or edge case. If the estate runs on a fiscal year that ends, say, June 30, you must enter both the beginning and ending dates in the fiscal-year boxes. Leaving them blank makes the Comptroller assume a calendar year and misapply rate brackets.
A common mistake and its consequence. Filers often copy the decedent’s Social Security number into the FEIN box. The estate has its own FEIN, and using the SSN means the Comptroller cannot match your 504NR to your Form 504, which stalls the whole filing.
A misconception. Many believe the title line is optional. It is not; the title (Trustee, Personal Representative, Executor) tells the state which resident test applies to you, so leaving it off invites questions about your status.
Part I, Columns A–E: The Income Grid
What it asks in plain English. Part I asks you to take each type of income and spread it across five columns: (A) total federal income, (B) non-Maryland distributable, (C) non-Maryland non-distributable, (D) Maryland distributable, and (E) Maryland non-distributable.
How to answer it. For each income line, copy the federal total into Column A, then split that same amount into Columns B through E based on where the income came from and whether it was distributed to beneficiaries. Distributable income is income passed out to beneficiaries; non-distributable income is income the fiduciary keeps.
A specific example. The Estate of Carol Reyes earned $40,000 in rents, all from a Maryland duplex, all retained. Daniel writes 40,000 in Column A and 40,000 in Column E (Maryland, non-distributable) on the rents line, leaving B, C, and D blank.
A nuance or edge case. Income from selling Maryland real estate is Maryland-source even if the trustee lives in another state, so it belongs in Column D or E. Interest and dividends from intangible assets are usually non-Maryland source for a nonresident, so they fall in B or C.
A common mistake and its consequence. Filers put all income in Column A and forget to split it. With no split, the Non-Maryland Income Factor on line 16 reads as zero, and Maryland taxes the entire estate.
A misconception. People assume “distributable” means “actually distributed.” It tracks income that can be passed to beneficiaries under the trust terms and the federal DNI rules, not just cash that left the account this year.
Part I, Lines 1–8: Income by Type
What it asks in plain English. Lines 1 through 8 list the income categories — interest (line 1), dividends (line 2), business income or loss (line 3), capital gain or loss (line 4), rents/royalties/partnerships (line 5), farm income (line 6), ordinary gain or loss (line 7), and other income (line 8) — each split across Columns A–E.
How to answer it. Match each line to the same line on your federal Form 1041 income section. Enter the federal figure in Column A, then allocate. On line 8 you must write in the type and amount of any “other” income in the spaces provided.
A specific example. The Maple Holdings Trust earned $12,000 of interest from out-of-state bonds and distributed all of it. The trustee enters 12,000 in Column A and 12,000 in Column B (non-Maryland, distributable) on line 1.
A nuance or edge case. A loss is entered as a loss, but a nonresident fiduciary can only claim losses generated in Maryland. An out-of-state rental loss does not reduce Maryland-source income.
A common mistake and its consequence. Filers describe line 8 “other income” with a vague label or skip the amount. The Comptroller cannot verify unlabeled income and may disallow the allocation, raising your Maryland tax.
A misconception. Some think business income from a partnership is always non-Maryland because the trust is passive. If the pass-through entity carries on business in Maryland, that share is Maryland-source and goes in Column D or E.
Part I, Lines 9–11: Totals and Federal Adjusted Taxable Income
What it asks in plain English. Line 9 is federal total income (the sum of lines 1–8). Line 10 is federal deductions. Line 11 is federal adjusted taxable income, found by subtracting line 10 from line 9.
How to answer it. Add lines 1 through 8 down each column to get line 9. Enter total federal deductions on line 10. Subtract line 10 from line 9 and write the result on line 11. Do this for every column.
A specific example. Maple Holdings Trust totals $12,000 of income in Column A on line 9, subtracts $1,500 of deductions on line 10, and writes 10,500 on line 11.
A nuance or edge case. Deductions must be allocated to the columns the income sits in. A deduction tied to Maryland rental income belongs in the Maryland columns, not the non-Maryland ones.
A common mistake and its consequence. Filers enter total deductions only in Column A and leave the other columns blank. That breaks the column math and the reconciliation check on line 15 fails.
A misconception. People think line 10 deductions include the income distribution deduction. They do not; that deduction appears separately on line 12.
Part I, Lines 12–15: Distribution, Estate Tax, QBI, and Federal Taxable Income
What it asks in plain English. Line 12 is the income distribution deduction, line 13 is the estate tax deduction, and line 14 is the qualified business income (QBI) deduction. Line 15 is federal taxable income without federal exemptions, found by subtracting lines 12, 13, and 14 from line 11.
How to answer it. Copy each deduction from the federal Form 1041 and allocate it across the columns. Then subtract all three from line 11 and write the result on line 15 in every column.
A specific example. Maple Holdings Trust distributed all income, so it enters a $10,500 income distribution deduction on line 12 and lands on 0 federal taxable income at line 15 in Column A.
A nuance or edge case. A simple trust that distributes everything will often show zero on line 15, yet it must still file 504NR if it had Maryland modifications or paid pass-through entity tax.
A common mistake and its consequence. Filers forget the QBI deduction on line 14, which overstates taxable income and inflates the Maryland tax they owe.
A misconception. Some believe line 15 should match the federal taxable income line on the 1041 exactly. It is federal taxable income without the federal exemption, so a small difference is normal.
The Line 15 Reconciliation Check
What it asks in plain English. The form prints a reminder: the sum of Columns B, C, D, and E on line 15 must always equal Column A on line 15.
How to answer it. Add line 15 Columns B + C + D + E and confirm the total equals line 15 Column A. If it does not, find the income line where your split does not add up.
A specific example. Daniel’s Estate of Carol Reyes shows $38,000 in Column A on line 15 and $38,000 in Column E, with B, C, and D at zero, so B+C+D+E equals A.
A nuance or edge case. A loss in one column and income in another can still reconcile, because the columns net to the federal total. Keep signs straight.
A common mistake and its consequence. Filers round columns inconsistently so the four columns miss Column A by a dollar. Even a one-dollar mismatch signals an allocation error and can trigger a notice.
A misconception. People think the check is optional self-help. It is a hard rule of the form, and the Comptroller treats a failed reconciliation as a math error.
Line 16: Non-Maryland Income Factor
What it asks in plain English. Line 16 asks for the share of income that came from outside Maryland. You add line 15 Column B and line 15 Column C, then divide by line 15 Column A.
How to answer it. Compute (15B + 15C) ÷ 15A. If the result is greater than 1, enter 1. If it is less than 0, enter 0. Carry the decimal out far enough to be accurate, because it scales your modifications.
A specific example. Maple Holdings Trust has all income from non-Maryland sources, so 15B + 15C equals 15A, and line 16 is 1.0000.
A nuance or edge case. If line 15 Column A is zero, you cannot divide; in that case there is no non-Maryland factor to apply and you follow the booklet’s modification rules directly.
A common mistake and its consequence. Filers divide by the wrong column or use line 9 instead of line 15. A wrong factor mis-splits your Maryland modifications on line 16b and changes your tax.
A misconception. People read this factor as “the percent Maryland taxes.” It is the opposite — it is the non-Maryland share used to remove out-of-state modifications.
Part II, Lines 16a–16c: Maryland Modifications
What it asks in plain English. Line 16a is the fiduciary’s share of net Maryland modifications from Form 504, line 5. Line 16b is the part of those modifications from non-Maryland sources. Line 16c is the part from Maryland sources.
How to answer it. Copy line 5 of Form 504 onto line 16a, entering a net subtraction as a negative number. Multiply line 16a by line 16 to get line 16b. Subtract line 16b from line 16a to get line 16c.
A specific example. Daniel’s estate has a net modification of $2,000 on Form 504 line 5, a Maryland-only estate, so line 16a is 2,000, line 16b is 0, and line 16c is 2,000.
A nuance or edge case. The booklet allows an alternate allocation method instead of the line 16 factor; use it only if your modifications clearly tie to specific sources and document the split.
A common mistake and its consequence. Filers enter a subtraction modification as a positive number. That flips the sign, overstates Maryland income, and inflates the tax.
A misconception. People assume modifications always reduce tax. Addition modifications, such as out-of-state bond interest, raise Maryland income.
Part II, Lines 16d–16f: ESBT Income
What it asks in plain English. Line 16d is the Electing Small Business Trust (ESBT) income from Form 504, line 3. Line 16e is the non-Maryland portion of that ESBT income. Line 16f is the net Maryland ESBT income, line 16d minus line 16e.
How to answer it. Bring the ESBT S-portion income from Form 504 line 3 to line 16d. Attach a schedule showing how you computed the non-Maryland portion on line 16e. Subtract; if the result is below zero, enter 0 on line 16f.
A specific example. The Brennan ESBT holds stock in an S corporation doing half its business in Maryland; with $20,000 of ESBT income, the trustee enters 20,000 on 16d, 10,000 on 16e, and 10,000 on 16f.
A nuance or edge case. A nonresident fiduciary may never distribute the S-portion of ESBT income to beneficiaries, so it always stays with the fiduciary and gets taxed at the trust level.
A common mistake and its consequence. Filers skip line 16e and tax the entire ESBT income to Maryland. That overstates Maryland tax when part of the S corporation operates elsewhere.
A misconception. People think ESBT income flows through Columns A–E like other income. It does not; it is added back separately on these lines per IRC Section 641(c).
Part II, Lines 17a–17e: Maryland Taxable Net Income
What it asks in plain English. Lines 17a and 17b pull the fiduciary’s Maryland-source distributable (line 15 Column D) and non-distributable (line 15 Column E) income. Line 17c adds 16c, 16f, 17a, and 17b. Line 17d is the Maryland exemption from Form 504 line 9. Line 17e is the fiduciary’s Maryland taxable net income.
How to answer it. Copy line 15 Column D to 17a and line 15 Column E to 17b. Add lines 16c, 16f, 17a, and 17b for line 17c. Bring the exemption from Form 504 line 9 to 17d. Subtract 17d from 17c for line 17e.
A specific example. Daniel’s estate enters 38,000 on 17b, adds the 2,000 modification, lands on 40,000 at 17c, subtracts a 200 exemption at 17d, and writes 39,800 on 17e.
A nuance or edge case. If 17c is less than the exemption, line 17e cannot go below zero for factor purposes; a negative result is treated as zero on the factor line.
A common mistake and its consequence. Filers forget the exemption on 17d, overstating Maryland taxable income by the exemption amount.
A misconception. People think 17e is the final tax. It is taxable income from Maryland sources, not the tax itself.
Part II, Lines 18–22: The Tax and the Nonresident Factor
What it asks in plain English. Line 18 is taxable net income from Form 504, line 10. Line 19 is the tax on line 18 using the Fiduciary Tax Rate Schedule (12A). Line 20 is the Maryland nonresident factor (line 17e divided by line 18). Line 21 is Maryland tax (line 19 × line 20). Line 22 is the Special Nonresident Tax (line 17e × 2.25%).
How to answer it. Bring Form 504 line 10 to line 18. Look up the tax on the rate schedule and enter it on line 19. Divide 17e by 18 for line 20; if greater than 1.000000, enter 1.000000, and if 17e is below zero, enter 0.000000. Multiply 19 by 20 for line 21, then carry it to Form 504 line 11. Multiply 17e by .0225 for line 22 and carry it to Form 504 line 12.
A specific example. With line 19 tax of $2,400 and a factor of 1.000000 on line 20, Daniel’s estate shows 2,400 on line 21 and a Special Nonresident Tax of $895.50 on line 22 (39,800 × .0225).
A nuance or edge case. The nonresident factor on line 20 must be carried to six decimal places. Rounding 0.873456 to 0.87 changes the tax by dollars.
A common mistake and its consequence. Filers forget the 2.25% Special Nonresident Tax on line 22. Omitting it underpays Maryland, and the Comptroller adds it back with interest.
A misconception. People think line 21 is the only tax. The 2.25% special tax on line 22 is separate and applies on top of the regular Maryland tax for nonresident fiduciaries.
Three Filled-Out Examples Using Real Scenarios
Below are three common fact patterns. Each follows one fiduciary through the major sections of Form 504NR.
Scenario 1 — Daniel Reyes, Personal Representative of a Maryland estate (lives in Virginia). Carol Reyes died domiciled in Virginia but owned a rented Maryland duplex. The estate keeps all the rent.
| Form Section | What Daniel Enters |
|---|---|
| Top block | Estate of Carol Reyes, FEIN 52-1234567, Daniel Reyes, Personal Representative |
| Line 5 (rents), Column A | 40,000 |
| Line 5 (rents), Column E (MD, non-distributable) | 40,000 |
| Line 15, Column A | 38,000 |
| Line 16 (Non-Maryland factor) | 0.0000 |
| Line 16a / 16c (modifications) | 2,000 / 2,000 |
| Line 17b (MD non-distributable) | 38,000 |
| Line 17e (MD taxable net income) | 39,800 |
| Line 21 / Line 22 (taxes) | 2,400 / 895.50 |
Scenario 2 — Maple Holdings Trust, trustee in Delaware, all income out of state. The trust earns only out-of-state bond interest and distributes all of it.
| Form Section | What the Trustee Enters |
|---|---|
| Top block | Maple Holdings Trust, FEIN 81-7654321, Lena Okafor, Trustee |
| Line 1 (interest), Column A | 12,000 |
| Line 1 (interest), Column B (non-MD, distributable) | 12,000 |
| Line 12 (income distribution deduction) | 10,500 |
| Line 15, Column A | 0 |
| Line 16 (Non-Maryland factor) | 1.0000 |
| Line 17a / 17b (MD source income) | 0 / 0 |
| Line 17e (MD taxable net income) | 0 |
| Line 21 / Line 22 (taxes) | 0 / 0 |
Scenario 3 — Brennan ESBT, trustee in Pennsylvania, S corporation split between states. The trust holds S-corp stock; the business does half its work in Maryland.
| Form Section | What the Trustee Enters |
|---|---|
| Top block | Brennan ESBT, FEIN 47-2468013, Mark Brennan, Trustee |
| Line 16d (ESBT income from 504 line 3) | 20,000 |
| Line 16e (non-Maryland ESBT portion) | 10,000 |
| Line 16f (net Maryland ESBT income) | 10,000 |
| Line 17a (MD distributable) | 0 |
| Line 17c (sum of 16c, 16f, 17a, 17b) | 10,000 |
| Line 17d (Maryland exemption) | 200 |
| Line 17e (MD taxable net income) | 9,800 |
| Line 21 / Line 22 (taxes) | 636 / 220.50 |
How to File the Completed Form
Form 504NR is never filed by itself. You attach it to Form 504, the Fiduciary Income Tax Return, and file them together. You have three channels.
By mail. Print the original in blue or black ink and mail Form 504 with Form 504NR attached to the Comptroller of Maryland, Revenue Administration Division. There is no separate fee for Form 504NR; if Form 504 shows a balance due, make a check or money order payable to Comptroller of Maryland, write the FEIN and tax year on it in blue or black ink, and keep a copy plus your certified-mail receipt as proof of filing. Allow several weeks of processing time for paper.
Electronically. Maryland takes fiduciary returns through the Federal/State Modernized e-File program using approved software that builds and transmits Form 504NR with the return. Pay any balance by direct debit or by mailing a voucher; e-filed returns process faster, often in days, and the software’s acceptance acknowledgment is your proof of filing. Questions go to the e-File Helpdesk at efil@marylandtaxes.gov or 410-260-7753.
Through a preparer. A CPA or tax attorney can prepare and e-file the package for you. You still sign as fiduciary, you still pay any balance due to the Comptroller of Maryland, and you should keep the preparer’s filing confirmation and a full copy of the return.
Whatever the channel, the return is due April 15, 2026 for the 2025 tax year. If that date falls on a weekend or legal holiday, the deadline shifts to the next business day.
What Happens After You File
After you file, the Comptroller’s Revenue Administration Division verifies your figures against the federal return and the K-1 data on record. The booklet states clearly that all items on your Maryland return are subject to verification, audit, and revision, so the numbers on line 15, line 16, and line 17e may be checked against your Form 1041.
If everything reconciles and you overpaid, Maryland issues a refund to the estate or trust; e-filed refunds arrive faster than paper. If you underpaid, you receive a notice showing the balance plus interest, which is charged on amounts not paid when due. For 2025 only, the Comptroller has said it will waive interest or penalties on underpaid estimated tax that resulted from the year’s rate-bracket changes.
Keep the full filed package — Form 504, Form 504NR, Schedule A, the federal 1041, and any attached ESBT schedule — for your records. If the Comptroller questions the allocation, those attachments are how you prove the Maryland-source split was correct.
Mistakes to Avoid When Filling Out the Form
- Putting the decedent’s SSN in the FEIN box, which stops the Comptroller from matching your forms.
- Leaving all income in Column A without splitting it, which taxes the entire estate as Maryland-source.
- Failing the line 15 reconciliation (B+C+D+E must equal A), which the state treats as a math error.
- Entering a subtraction modification on line 16a as a positive number, which inflates your tax.
- Skipping line 16e for ESBT income, which taxes out-of-state S-corp income to Maryland.
- Forgetting the Special Nonresident Tax on line 22, which underpays the 2.25% and draws interest.
- Rounding the line 20 factor to two decimals instead of six, which throws off the Maryland tax.
- Using an old revision of the form, which has wrong line numbers and rates and gets bounced.
- Filing Form 504NR without attaching Form 504, which leaves the calculation with no return to feed.
- Writing in pencil or red ink or stapling the barcode, which delays processing under the booklet’s rules.
- Misclassifying Maryland rental or business income as non-Maryland, which understates the tax you owe.
- Omitting the income distribution deduction on line 12, which overstates taxable income on line 15.
Do’s and Don’ts
Do:
- Do finish your federal Form 1041 first, because every income line copies from it.
- Do complete Form 504 Schedule A before 504NR, since its line 8 result feeds line 16a.
- Do carry the line 20 nonresident factor to six decimal places for an accurate tax.
- Do attach a schedule for line 16e showing how you split ESBT income, as the form requires.
- Do keep your certified-mail receipt or e-file acknowledgment as proof of filing.
- Do use blue or black ink and submit the original, never a photocopy.
Don’t:
- Don’t enter subtraction modifications as positive numbers, because the sign drives the tax direction.
- Don’t claim out-of-state losses against Maryland income, since only Maryland losses count for a nonresident.
- Don’t skip the line 22 special tax, because it applies on top of the regular Maryland tax.
- Don’t file the old year’s form, because line numbers and rates change annually.
- Don’t distribute ESBT S-portion income to beneficiaries, because Maryland law forbids it.
- Don’t leave the fiscal-year boxes blank if the entity is not on a calendar year.
Pros and Cons of Filing on Your Own vs. With Help
| Filing on Your Own | Filing With a Professional |
|---|---|
| Costs nothing beyond postage, which suits a simple Maryland-only estate. | Costs a fee, but a CPA catches allocation errors that trigger Maryland recalculations. |
| You learn the form and keep full control of the timeline. | A pro handles the six-decimal factor and ESBT add-back so the math is right. |
| Works well when income is small and clearly all Maryland or all out of state. | Worth it when income spans several states and the column split is complex. |
| You can use free state help at 1-800-MDTAXES for plain questions. | A preparer signs off and represents you if the Comptroller audits the return. |
| Fast for a single-source estate you understand well. | Saves time when juggling the 1041, Schedule A, 504, and 504NR together. |
FAQs
Is Form 504NR required for every nonresident fiduciary?
Yes. A nonresident fiduciary with Maryland modifications or Maryland-source income must attach Form 504NR to Form 504 so Maryland taxes only the Maryland portion of the estate’s income.
Do I file Form 504NR by itself?
No. Form 504NR is a required attachment to Form 504; it feeds line 11 and line 12 of that return and cannot be filed alone.
Do I put the decedent’s Social Security number in the FEIN box?
No. Enter the estate’s or trust’s nine-digit Federal Employer Identification Number; the SSN goes only in the decedent’s information section, and a wrong FEIN stops processing.
Is a subtraction modification on line 16a entered as a negative number?
Yes. The form instructs you to enter a net subtraction modification as a negative number, because the sign determines whether Maryland income rises or falls.
Do I include out-of-state rental losses on this form?
No. A nonresident fiduciary can only claim losses generated in Maryland, so an out-of-state rental loss does not reduce your Maryland-source income.
Is the line 20 nonresident factor rounded to two decimals?
No. Carry it to six decimal places; the form caps it at 1.000000 and floors it at 0.000000, and rounding to two decimals misstates the tax.
Do ESBT S-portion earnings go in Columns A through E?
No. ESBT income is added back separately on lines 16d through 16f from Form 504 line 3, not spread through the Part I income grid.
Is the Special Nonresident Tax separate from the regular Maryland tax?
Yes. Line 22 applies a 2.25% special tax on Maryland taxable net income, and it is owed on top of the regular Maryland tax computed on line 21.
Does the sum of Columns B through E have to equal Column A on line 15?
Yes. The form prints this as a hard reminder, and a mismatch is treated as a math error that can generate a notice.
Is the federal Form 1041 needed before I start?
Yes. Maryland law requires you to complete the federal fiduciary return first because Form 504NR copies income, deductions, and taxable income figures from it.
Do I owe a separate filing fee for Form 504NR?
No. There is no fee for the form itself; you pay only any balance due shown on Form 504, payable to the Comptroller of Maryland.
Is the return due April 15?
Yes. The 2025 fiduciary return and its Form 504NR are due April 15, 2026, moving to the next business day if that date is a weekend or holiday.
Do I write the income distribution deduction on line 10?
No. Line 10 holds federal deductions; the income distribution deduction goes on line 12, separate from the estate tax and QBI deductions.
Is Form 504NR the same as a nonresident individual return?
No. Form 504NR is only for fiduciaries of estates and trusts; nonresident individuals use Form 505, a different return entirely.
Related reading
- How to Fill Out Maryland Form 502 (w/Examples) + FAQs
- How to Fill Out Maryland Form 502SU (w/Examples) + FAQs
- How to Fill Out Maryland Form 502UP (w/Examples) + FAQs
- How to Fill Out Maryland Form 504 (w/Examples) + FAQs
- How to Fill Out Maryland Form 505 (w/Examples) + FAQs
- How to Fill Out Maryland Form 505NR (w/Examples) + FAQs