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Fiduciary Income Tax FAQs

General Information

  • What does the word "fiduciary" mean?

      A fiduciary is defined by the Internal Revenue Service (IRS) as any person in a position of confidence acting on behalf of any other person. A fiduciary assumes the powers, rights, duties and privileges of the person or entity on whose behalf he is acting.

      According to Indiana Code 6-3-1-7, “fiduciary” means any guardian, trustee, executor, administrator, receiver, conservator, or any person, whether individual or corporate, acting in any fiduciary capacity for any individual, trust, guardian or estate.

Filing Requirements

  • Who is responsible for filing the Fiduciary Income Tax Return?

    The fiduciary representative is responsible for filing the IT-41 Indiana Fiduciary Income Tax Return.

  • How do I apply for the federal identification number, and do I need a separate number for Indiana?

    Every estate or trust that is required to file Form IT-41 must have a federal identification number (employer identification number [EIN]) issued by the IRS. Federal and Indiana tax returns require an EIN.

    An EIN will be issued immediately if you apply online at www.irs.gov.

    The IRS also allows you to apply by telephone toll-free at 800-829-4933 from 7 a.m. – 10 p.m. in the fiduciary’s local time zone, by fax or mail.

  • Can a fiduciary file the Indiana tax forms electronically?

    Modernized e-file (MeF) is now available for filing and amending fiduciary income tax returns. Forms IT-41 and IT-41ES can still be filed using paper returns. Fillable forms are available at dor.in.gov/tax-forms/fiduciary-income-tax-forms/.

  • Are there special filing requirements for different types of entities?

    Yes, there are different requirements for specific entities as noted in the guidelines below.

    Bankruptcy Estate
    A bankruptcy estate of an individual will file Form IT-41 with an enclosed copy of the individual’s IT-40 Indiana Individual Income Tax Return. The fiduciary return will report only the amount of tax computed on the individual income tax return. If there is tax due, report the tax on line 11 of the IT-41. The payment should be submitted with the IT-41 return.

    Charitable Trusts
    Charitable trusts filing federal Form 5227 Split-Interest Trust Information Return should file Form IT-41 with an enclosed copy of Form 5227. Form IT-41 will be an informational return.

    Common Trust Fund
    Common trust funds file Form IT-65, Indiana Partnership Return (not the Form IT-41). For additional information, contact corporate income tax at 317-232-0129.

    Electing Small Business Trust (ESBT)  
    Special rules apply when figuring the tax on the S portion of an ESBT. The S portion of an ESBT is the portion of the trust that consists of stock in one or more S corporations and is not treated as a grantor type trust. Following the federal guidelines, the tax on the S portion must be figured separately from the tax on the remainder of the ESBT (if any) and enclosed with the return. Report the tax due on the Indiana portion of income from an ESBT on line 11 of the IT-41 return. You must enclose a separate statement showing the income and tax computation using the Indiana state tax rate.

    Estates
    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 estate assets is made to 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.

    According to Indiana Code 6-3-4-1 and for taxable years beginning after Dec. 31, 2012, every resident estate having gross income or nonresident estate having any gross income from sources within the state of Indiana exceeding the amount provided in Section 6012(a)(3) of the Internal Revenue Code (currently $600) for the taxable year must file a return.

    For purposes of filing the Indiana Fiduciary Income Tax Return, estates are classified as either resident or nonresident. For estates, residence is based on the decedent’s residence at the time of death.

    Resident estates are taxable on all federal taxable income from all sources, regardless of where it is earned.

    Nonresident estates are taxable in Indiana on all federal taxable income derived from Indiana sources. Income derived from sources within and outside of Indiana shall be determined under Indiana Code 6-3-2-2 (see Nonresidents). Nonresident estates may adjust federal taxable income (or loss) reported on line 1 to reflect taxable income allocable to Indiana.

    Grantor Trusts
    In the case of a grantor trust, the income is taxed at the individual level. Therefore, if Form IT-41 is filed, it is only considered an informational return identifying the trust and the grantor. Enclose a statement (or a copy of the federal return) that discloses income and deductions attributable to the grantor. No financial information should be entered on the IT-41.

    Private Foundations
    Every private foundation with income from sources within the state of Indiana that is taxed as a trust filing federal Form 990PF must file using Form IT-41. Enclose a copy of the federal Form 990PF with the Form IT-41 when filing. NOTE: The due date for filing the Form IT-41 is the 15th day of the fifth month following the taxable year’s close.

    Retirement Plans
    Every retirement plan with income from sources within the state of Indiana that is taxed as a trust filing federal Form 990T must file using Form IT-41. Enclose a copy of the federal Form 990T with the Form IT-41 when filing. NOTE: The due date for filing the Form IT-41 is the 15th day of the fifth month following the taxable year’s close.

    Trusts
    According to Indiana Code 6-3-4-1, for taxable years beginning after Dec. 31, 2012, every resident trust having gross income or nonresident trust having any gross income from sources within the state of Indiana exceeding the amount provided in Section 6012(a)-(4) of the Internal Revenue Code (currently $600) for the taxable year must file a return.

    For purposes of filing the Indiana Fiduciary Income Tax Return, trusts are classified as either resident or nonresident. For Indiana, the trust residence is determined by the place where it is administered. Therefore, you must determine where the trustee or personal representative is located and where the records are kept for the trust. Resident trusts are taxable on all federal taxable income from all sources regardless of where it is earned.

    Nonresident trusts are taxable in Indiana on all federal taxable income derived from Indiana sources. Income derived from sources within and outside of Indiana shall be determined under Indiana Code 6-3-2-2 (see Nonresidents). Nonresident trusts may adjust federal taxable income (or loss) reported on line 1 to reflect taxable income allocable to Indiana.

    A trust may qualify as a simple trust if:

    • The trust instrument requires that all income must be distributed currently.
    • The trust instrument does not provide that any amounts are to be paid, permanently set aside or used for charitable purposes.
    • The trust does not distribute amounts allocated to the corpus of the trust.

    A complex trust is any trust that does not qualify as a simple trust. These determinations are made by the IRS.

  • Does a fiduciary have to make estimated payments?

    Estimated payments are accepted at the fiduciary level but are not required. Estimated payments may be made through INTIME or by using the EIN and the Form IT-41ES Fiduciary Payment Voucher.

    There are no carryover provisions for estimated payments. Therefore, overpayments are not applied to the estimated account for the following year. Any overpayments will be refunded. Do not request to transfer estimated payments between individual and fiduciary accounts.

  • Is the estate or trust a resident or nonresident of Indiana?

    For purposes of filing the Indiana Fiduciary Income Tax Return, estates and trusts are classified as either resident or nonresident. For Indiana:

    • the estate is a resident if the decedent was an Indiana resident at the time of death; and,
    • the trust residence is determined by the place where it is administered. Therefore, you must determine where the trustee or personal representative is located and where the records are kept for the trust or estate.

    Resident estates or trusts are taxable on all income from all sources regardless of where it is earned. Therefore, resident fiduciaries must report all attained income.

    Nonresident estates and trusts are taxable in Indiana on all income derived from Indiana sources. Nonresident estates and trusts must adjust federal taxable income (or loss) to reflect taxable income allocable to Indiana.

    Income received from Indiana sources is considered Indiana income to nonresidents, except certain types of Indiana source income that are subject to tax only by the taxpayer’s legal state of residence. Interest, dividends, royalties and gains from the sale of capital assets are subject to tax only by the taxpayer’s state of legal residence unless such income results from the conduct of a trade or business in Indiana. If a trade or business is conducted in Indiana, the income should be reported as Indiana income.

    Income from a qualified pension, annuity or profit-sharing plan is subject to tax by the taxpayer’s legal state of residence. Lump sum distributions from qualified plans are subject to tax by the state that, at the time of distribution, is the taxpayer’s legal state of residence. Deferred compensation other than from a qualified retirement plan, accumulated vacation, bonus, severance, sick pay and income from a stock option plan are directly attributable to services performed and are taxable by the state where the services were performed.

  • What are the due dates for filing Form IT-41 Indiana Fiduciary Income Tax Return?

    Form IT-41 must be filed by the 15th day of the fourth month following the taxable year’s close.

    For retirement plans filing federal Form 990-T and for private foundations filing federal Form 990-PF, the return must be filed by the 15th day of the fifth month following the close of the taxable year.

  • Can the fiduciary file an extension of time to file the tax return?

    The fiduciary may request an extension of time to file, if needed. If no tax liability is anticipated, DOR accepts the federal extension of time application (Form 7004, Application for Automatic Extension Time to File Certain Business Income Tax, Information, and Other Returns). You do not need to contact DOR prior to filing the annual Form IT-41 fiduciary return. A copy of the federal extension of time must be enclosed with the return when it is filed. DOR’s time allowance aligns with the IRS, plus 30 days.

    If a fiduciary does not need a federal extension of time but needs one to file the state return, the extension can be requested in two ways:

    • Via DOR’s e-services portal, INTIME, at intime.dor.in.gov.
      • When filing an extension request via INTIME, an extension payment can be made at the same time.
    • By submitting a letter to DOR prior to the due date of the annual return.

    The request should be mailed to:

    Indiana Department of Revenue
    Fiduciary Section
    P.O. Box 6079
    Indianapolis, IN 46206-6079

    If you anticipate owing tax on the return, the extension is for time to file only, not time to pay. To obtain an extension, the fiduciary must enclose with Form IT-41 a copy of the approved request for extension of filing the federal fiduciary return and pay at least 90% of the estimated Indiana tax liability. The extension payment must be sent by the return’s original due date with Form IT-41ES, which is available online at dor.in.gov/tax-forms. If tax liability is not anticipated, enclose a copy of the approved federal extension request with the Form IT-41 return when filing.

  • Does the fiduciary do anything special for a final return?

    When an estate or a trust is terminated or is required to distribute current income during the taxable year and there is distributable net income, the distributable net income is allocated to the beneficiaries. The beneficiaries must report their respective shares on their Form IT-40 Individual Income Tax Return or Form IT-40 PNR Part-Year/Nonresident Individual Income Tax Return. If the nonresident beneficiary has been included on Schedule Composite, and the individual nonresident beneficiary has no other Indiana-source income, then there is no IT-40 PNR filing requirement.

    If a final distribution of assets has been made during the year, all income of the estate or trust must be reported to the beneficiaries. Check the box on the back of Form IT-41 if filing a final return.

Forms

Tax Computations

Credits

Payments

Refunds

Contact Information

  • How can I contact someone in the Indiana Department of Revenue's fiduciary section?

    You can contact the fiduciary section in one of the following ways:

    • Mail to:
      Indiana Department of Revenue
      Fiduciary Section
      P.O. Box 6079
      Indianapolis, IN 46206-6079
    • Visiting a district office
    • Via secure messaging using DOR’s e-services portal, INTIME, at intime.dor.in.gov

    The central and district offices are open Monday through Friday from 8 a.m. - 4:30 p.m. EST.

    Find the nearest district office

  • What is the mailing address for forms?

    Returns with Payment
    Indiana Department of Revenue
    Fiduciary Section
    P.O. Box 6192
    Indianapolis, IN 46206-6192

    All Other Returns or Correspondence
    Indiana Department of Revenue
    Fiduciary Section
    P.O. Box 6079
    Indianapolis, IN 46206-6079

    Street Address
    Indiana Department of Revenue
    Fiduciary Section
    100 North Senate Avenue
    Indianapolis, IN 46204-2253

  • How can I get tax forms?

    The Indiana IT-41 Fiduciary Income Tax Return fillable form and the Indiana IT-41ES Fiduciary Payment Voucher are available online at dor.in.gov/tax-forms/fiduciary-income-tax-forms/.

    If you do not have access to a computer, you may call the forms order request line at 317-615-2581 to request that forms be mailed to you. You will need to leave the following information on the voice mail system:

    • Name of form or form number needed
    • Contact person’s name
    • Daytime phone number
    • Complete mailing address including city, state, and ZIP Code

    Tax forms are also available at district offices throughout Indiana. Office hours are Monday through Friday from 8 a.m. – 4:30 p.m. EST.

    Find the nearest district office

Nonresident Income

  • What type of income is reported to Indiana by a nonresident?

    Income received from Indiana sources, including income from the sale of real property or tangible personal property located in Indiana, is considered Indiana income to nonresidents, except certain types of Indiana source income that are subject to tax only by the taxpayer’s legal state of residence. Interest, dividends, royalties and gains from the sale of capital assets are subject to tax only by the taxpayer’s state of legal residence unless such income results from conducting a trade or business in Indiana. If a trade or business is conducted in Indiana, the income should be reported as Indiana income.

    Income from a qualified pension, annuity or profit-sharing plan is subject to tax by the taxpayer’s legal state of residence at the time of receipt. Lump sum distributions from qualified plans are subject to tax by the state that, at the time of distribution, is the taxpayer’s state of legal residence. Deferred compensation other than from a qualified retirement plan, accumulated vacation, bonus, severance, sick pay and income from a stock option plan are directly attributable to services performed and are taxable by the state where the services were performed.

Nonresident Beneficiaries

  • Basic IT-41 Composite Filing Procedures

    a) Schedule Composite - Complete this schedule, including each nonresident beneficiary. Indicate the name, address, distributive share amount of income derived from sources within Indiana and calculated tax attributable to each nonresident beneficiary. Enclose this schedule with the Form IT-41 Fiduciary Income Tax Return.

    b) Schedule Composite COR - For C corporations that are beneficiaries of an estate or trust, complete Schedule Composite COR. Enclose this schedule with the Form IT-41 Fiduciary Income Tax Return.

    c) Tax Liability - On Form IT-41, line 11, enter the combined total tax liability from the Schedule Composite.

    d) Withholding Requirements - Based on Indiana Code 6-3-4-15, withholding is required when a trust or an estate (fiduciary) distributes Indiana income (except income attributable to interest or dividends) to a non-Indiana resident beneficiary. DOR has streamlined the procedure for making withholding payments for nonresident beneficiaries, eliminating the withholding account and the need to file WH1, WH3, and WH18 forms for nonresidents. Instead, all withholding monies will be remitted with Form IT-41ES Fiduciary Payment Voucher, and credit for the withholding/composite tax will be reflected on the Schedule IN K-1 for each nonresident beneficiary.

    e) Claiming Credit for Tax Withheld – On Form IT-41, line 14, enter the total Indiana withholding tax paid on behalf of the trust or estate. Enclose a copy of each Schedule IN K-1 to verify the credit claimed. If the withholding credit is being passed through to the individual income tax return for a nonresident beneficiary, the beneficiary must include a copy of the Schedule IN K-1 showing the amount of tax withheld on their behalf. Refer to Income Tax Information Bulletin #72 for more information.

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