Fiduciary Return. Forms and Instructions

Transcription

1 1997 Minnesota Fiduciary Return Forms and Instructions This booklet includes Form M-2, Fiduciary Income Tax Return Schedule M-2MT, Alternative Minimum Tax for Estates and Trusts Schedule M-KF, Beneficiary s Share of Minnesota Taxable Income PV-82, Extension Payment of Fiduciary Income Tax New this year If the fiduciary administers 100 or more trusts, you must pay the fiduciary income taxes by means of Electronic Funds Transfer (EFT). Form M-E has been eliminated. To extend the due date for filing your Form M-2, you must receive a federal extension. Fiduciaries will use Form PV-82, Extension Payment of Fiduciary Income Tax, to pay their tax when filing under an extension. PV-82 replaces Form M-73. MINNESOTA Department of Revenue 10 River Park Plaza, St. Paul, Minnesota Stock No

2 General information for filing Form M-2 What s new for 1997? Box to check if want forms mailed Due to the increase in use of forms created with tax preparation software and forms obtained electronically through the Internet or off of our CD-ROM, a small percentage of the returns filed use the printed forms from the booklet. To help reduce unnecessary printing and mailing costs, the Department of Revenue will not send out tax booklets next year un you indicate that you want one sent to you. If you want to receive a fiduciary booklet in the mail next year, check the box on your Form M-2. A federal extension must be granted to extend Minnesota due date Beginning with returns due in 1997, you must request a federal extension in order to extend the due date for filing your Minnesota return. Therefore, Form M-E, Application for Extension of the Deadline for Filing Partnership, S Corporation, or Fiduciary Tax Returns, has been eliminated. For fiduciaries, Form M-73, Extension Payment, has been replaced by Form PV-82, Extension Payment of Fiduciary Income Tax. Paying by EFT Effective for tax years beginning after December 31, 1997, if the fiduciary administers 100 or more trusts, the fiduciary income taxes for all the trusts administered by the fiduciary must be paid by electronic funds transfer (EFT). Filing requirements The trustee of a trust or personal representative of an estate with $600 or more of gross income assignable to Minnesota must file Form M-2, Fiduciary Income Tax Return, regard if the estate or trust is considered resident. A fiduciary can also be a guardian, receiver, conservator, or any other person acting in a fiduciary capacity for a person. Before you fill out Form M-2, complete federal Form 1041, U.S. Income Tax Return for Estates and Trusts, and supporting schedules. You will need to reference them. Resident estates. An estate is considered a Minnesota estate if the decedent was a resident of Minnesota at the time of death, or if the personal representative or fiduciary was appointed by a Minnesota court in other than an ancillary proceeding, or the administration was performed in Minnesota. File the first Form M-2 covering the period from the date of the decedent s death to the end of the tax year. File subsequent returns for later years until the end of the estate s administration period. 2 Resident trusts. The definition of a resident trust differs depending on the date before or after December 31, 1995 the trust becomes irrevocable. For trusts that become irrevocable or were first administered in Minnesota after December 31, 1995: A resident trust means a trust, except a grantor type trust, which either: 1 was created by a will of a decedent who at his or her death was domiciled in this state, or 2 is an irrevocable trust, the grantor of which was domiciled in this state at the time the trust become irrevocable. A trust is considered irrevocable to the extent the grantor is not treated as the owner thereof under sections 671 to 678 of the Internal Revenue Code. For trusts that became irrevocable or were first administered in Minnesota before December 31, 1995: A resident trust means any trust administered in Minnesota. Charitable remainder trusts. If the charitable remainder trust files a federal Form 1041A, a Minnesota Form M-2 must also be filed. Enter zero on lines 1 and 10 of Form M-2. Attach a copy of the federal Form 1041A and all federal Schedules K-1 to the Minnesota return. Settlement funds. If the trustee or personal representative of a designated and qualified settlement fund (under section 468B of the Internal Revenue Code) must file an annual federal income tax return, Form 1120-SF, a Minnesota Form M-2 must also be filed. Bankruptcy estates. If the fiduciary of a bankruptcy estate of a Minnesota resident filed a federal return, a Minnesota return must also be filed. Use Form M-1 to determine the tax and attach it to Form M-2. File it in the same way you file federal returns. Estimated tax payments Minnesota does not require an estate to make estimated tax payments. A trust with an estimated tax of $500 or more must file estimated tax deposit forms and make quarterly payments based on its entire estimated tax. Payments are due on or before the 15th day of the fourth, sixth, and ninth months of the tax year and the first month following the end of the tax year. You can pay your estimated tax by mail or electronic funds transfer (EFT). If you pay by mail, you must attach your quarterly payment to Form M-70, Fiduciary Estimated Tax Deposit Form. For more information on paying your tax by EFT, call the department at the numbers provided on the back cover. Due dates for filing and paying File Form M-2 and pay the entire amount of tax on or before the 15th day of the fourth month following the end of the tax year of the estate or trust. Part-year fiduciary returns are due by the 15th day of the fourth month following the end of the period covered by the return. Extension of the filing deadline If an extension to file the federal fiduciary income tax return has been granted by the IRS, the time for filing your Minnesota return is automatically extended for that period. Attach a copy of the federal extension to your Form M-2 and file it by the federal extended due date. Don t send in the extension form separately. If you will not be requesting a federal extension, you cannot extend the filing due date for Form M-2. An extension does not extend the time for paying the taxes payable on Form M-2. Extension payment Your tax payment is due by the regular due date, even if your return will be filed under an extension. You will be required to pay a late payment penalty and interest on tax paid after the regular due date. To avoid penalties and interest, you must pay your tax by mail or EFT on or before the regular due date. If you send in your payment, use Form PV-82, Extension Payment of Fiduciary Income Tax, which is included in this booklet. To pay your tax by means of EFT, you must be registered to pay fiduciary extension payments. To request an authorization form, call the department at the numbers provided on the back cover. Request for an early audit You may request an early audit of the return of a decedent, estate, terminating trust, or other fiduciary on Form M-22, Request for Early Audit of Minnesota Income Tax Return. Filing Form M-22 reduces the time limit the department has to assess any additional taxes from three and one-half years after you file an income tax return to 18 months. Use of information All information on this form is private and cannot be given to others except as provided by state law. The identity and income information is required under state law so the Department of Revenue can determine the correct fiduciary tax.

3 General information Form M-2, lines 1-3 Reporting changes to federal tax If the Internal Revenue Service (IRS) changes your federal fiduciary income tax return, you have 180 days to report the changes to the Department of Revenue. If the federal changes affect your Minnesota return, you must file an amended Form M-2. If the changes do not affect your Minnesota return, report the changes by writing to: Minnesota Fiduciary Income Tax Mail Station 5170 St. Paul, MN Attach a complete copy of your amended federal return or correction notice when you report the changes to the department. A penalty of 10 percent of the underpaid Minnesota tax that is due to the federal change will be assessed if you fail to report as required. Amended returns If you file an amended Minnesota return to report federal changes or to correct a mistake on a filed return, use Form M-2 for the appropriate year and check the Amended box in the address section at the top of the form. Final returns For income tax purposes, Minnesota follows federal law on termination of estates and trusts. Any income, deductions, and credits are passed through to the beneficiaries. If this is a final return, be sure to check the Final return box on the front of the form. Penalties and interest Late payment. A late payment penalty is assessed on any tax not paid by the due date. The penalty is 3 percent of the unpaid tax for every 30-day period (or part of a 30-day period) that your payment is late, up to 24 percent. Late filing. There is also a penalty for failing to file on time. The late filing penalty is 3 percent of any unpaid tax for the first 30 days and 5 percent for each additional 30 days, up to 23 percent. Combined late filing and late payment. The total combined penalty for failing to file on time and for sending in your payment late is a maximum of 38 percent. Interest. You must also pay interest on the penalty and tax you are sending in late. The interest rate is 9 percent per year. Criminal penalties. In addition to the above penalties, you re also subject to criminal penalties if you knowingly fail to file a timely return or file a false return. Composite income tax for nonresident individual beneficiaries Minnesota allows estates and trusts to file composite Minnesota income tax on behalf of their beneficiaries who are nonresident individuals and who elect to be included. An individual beneficiary is required to file a Minnesota income tax return and is subject to income tax if their Minnesota source income is $6,800 or more. For more information on composite income tax filing for nonresident beneficiaries, call the Department of Revenue at the number listed on the back cover. Use your address label If you filed Form M-2 last year, you should have received a booklet with a preprinted, peel-off label attached to the front. Place this label in the name and address section of your Form M-2. Be sure the Minnesota and federal ID numbers are correct. If any information on the label is incorrect, cross out the information and write the correct information above it. If you didn t get a label, type or print clearly. Minnesota tax ID number Be sure to put the Minnesota tax ID number on the return. Without it, processing of the return is delayed, and estimated tax and extension prepayments cannot be verified and credited properly. If you don t have a Minnesota ID number, you must apply for one. Call (612) or (toll-free). Or you may request Form ABR, Application for Business Registration, by writing to: Minnesota Tax Forms Mail Station 1421 St. Paul, MN Next year s forms To help reduce unnecessary printing and mailing costs, the department will not send out fiduciary booklets next year un you indicate that you want a booklet mailed to you. If you want a fiduciary booklet mailed to you next year, check the box. Signatures The return must be signed by the fiduciary or authorized officer of the organization receiving, controlling, or managing the income of the estate or trust. The person must also include his or her ID number. If the return was prepared by someone other than the fiduciary, that person must also sign the return. The preparer s ID number and telephone number should also be included. You may check the box after the preparer s signature to give the Department of Revenue your permission to discuss your tax return with this paid preparer. How to assemble your tax forms Arrange your Minnesota schedules in the order you filled them out and place them behind your Form M-2. Then place your federal income tax return and its schedules behind the Minnesota material and staple in the upper left corner. Where to send your return Mail your Form M-2 and all attached Minnesota and federal forms and schedules, using the label from the back cover of this booklet. If you choose not to use the label, mail your forms to: Minnesota Fiduciary Income Tax Mail Station 1310 St. Paul, Minnesota Or you may take your return to the Minnesota Department of Revenue at 10 River Park Plaza (near the corner of South Robert and Fillmore streets) in St. Paul. Form M-2 line instructions Income of estates and trusts taxed by Minnesota is determined from income taxed by the federal government, with some adjustments. The way Minnesota income is determined for estates and trusts is different from that of a Minnesota resident individual. Trust and estate income is based on income from Minnesota sources only [M.S , subd. 1]. Non-Minnesota losses allocated to the fiduciary must be added back to income. Non-Minnesota income and gains are subtracted from income. Intangible income earned by a resident estate or trust is considered Minnesota source income. Line 2 Deductions not allowed by Minnesota Add any administration fees and expenses, interest, taxes, depletion, and other deductions (including the charitable deduction) connected with or allowed against income or gains not subject to Minnesota income tax from non-minnesota sources that are deducted in determining the fiduciary s taxable income [M.S , subd. 1(b)]. An example of this would be expenses incurred in connection with a probate proceeding in another state. Line 3 Losses not allowed by Minnesota Fill in the total losses from non-minnesota sources to the extent the losses are deducted in determining the federal taxable income or loss of the fiduciary. Continued on next page. 3

4 Form M-2, lines 3-23 Common examples of losses not allowed for Minnesota purposes include: losses deducted on the sale or other disposition of real or tangible property outside Minnesota, casualty losses deducted on property outside Minnesota, losses deducted on the operation of a farm outside Minnesota, out-of-state losses from partnerships, S corporations, and other fiduciaries, losses deducted on the operation of a trade or business from sources outside Minnesota, and losses deducted on the sale or other disposition of stocks, bonds, securities, and other intangible property by nonresident estates and trusts. Line 4 Capital gain from a lump-sum distriion If you received a lump-sum distriion from a qualified retirement plan in 1997, and you chose the capital gain election on your federal Form 4972, fill in the amount from line 6 of part II of your Form 4972, Tax on Lump-Sum Distriions. Be sure to attach Form 4972 to your Form M-2. Line 5 Additions Read the instructions on page 5 in the section titled Allocation of adjustments. Line 7 Subtractions Read the instructions on page 5 in the section titled Allocation of adjustments. Line 8 Income from non-minnesota sources Deduct the income from sources outside Minnesota to the extent the income is included in the fiduciary s federal taxable income. No deduction is allowed, however, where the income or gains not assignable are being distried to the beneficiary of the estate or trust. Income exempt from the fiduciary s taxable income include: gains from the sale or other disposition of real or tangible property outside Minnesota, income or gains from the operation of a farm outside Minnesota, profit from a trade or business outside Minnesota (write in the name and location of the trade or business under line 8), out-of-state income from partnerships, S corporations and other fiduciaries (write in the name and location of the partnership or other fiduciary under line 8), rents and royalties from land, buildings, machinery, or other tangible property outside Minnesota (write in the name and location of the property producing the rents and royalties under line 8), and interest, dividends, income, and gains from stocks, bonds and other securities for nonresident estates and trusts. Attach a separate schedule, if needed. Line 11 Minnesota tax Go to the table on pages 6 and 7 to determine the amount to fill in on line 11. Line 12 Tax on a lump-sum distriion If the fiduciary received a lump-sum distriion from a qualified pension plan, profit sharing plan, or stock bonus plan and the 5-year averaging method on federal Form 4972 was used, you must fill out Minnesota Schedule M-1LS, Tax on Lump-Sum Distriion from a Qualified Retirement Plan. Fill in the amount from line 11 of Schedule M-1LS on line 12 of Form M-2. Attach Schedule M-1LS to Form M-2. Line 13 Alternative minimum tax If the fiduciary had to fill out federal Schedule I, Alternative Minimum Tax, fill out Minnesota Schedule M-2MT, Alternative Minimum Tax for Estates and Trusts, found in this booklet. Fill in the amount from line 16 of Schedule M-2MT and attach the schedule to your Form M-2. Line 14 Total income tax Add lines 11 through 13 and enter the amount on line 14. If you are filing the return after the due date, determine the amount of penalty and interest you owe and fill in the result beside line 14. Line 15 State income tax already paid Fill in the Minnesota income tax already paid by the fiduciary for 1997, including any: 1997 estimated taxes paid using Form M-70, Fiduciary Estimated Tax Deposit Form, electronic fund transfer payments applied to your 1997 fiduciary income tax, portion of the fiduciary s 1996 Minnesota income tax refund that was applied to its 1997 estimated tax, extension payment made when filing Form PV-82, Extension Payment of Fiduciary Income Tax (write in paid with extension beside line 15), backup withholding on income retained by the estate or trust, and Minnesota income tax withheld in error (and not repaid) by an employer on wages and salaries of a decedent that was received by the decedent s estate (attach a copy of federal Form W-2, Wage and Tax Statement, to Form M-2). Line 16 Additional tax due If line 14 is more than line 15, you owe additional Minnesota income tax for Subtract line 15 from line 14 and fill in the result on line 16. Line 17 Trusts only Skip this line if you are an estate. If line 16 of your Form M-2 is $500 or more, or if you underpaid your 1997 estimated tax, you must fill out Minnesota Schedule M-15, Underpayment of Estimated Income Tax by Individuals, Trusts and Partnerships, to determine if you owe a penalty. Fill in the penalty amount, if any, on line 17. Attach Schedule M-15 to your Form M-2. Line 18 Amount due Add line 16 and line 17. This is the amount of tax you owe. If the amount of tax you owe is $1 or, you don t have to pay it, you must file Form M-2. Make your check or money order payable to: Minnesota Department of Revenue. Line 19 Overpayment If line 15 is more than line 14, subtract line 14 from line 15. Also subtract any amount you list on line 17 and fill in the result on line 19. If you are paying 1998 estimated tax, you may want to apply all or a portion of the 1997 refund to your 1998 estimated tax. See instructions for line 20. Line estimated tax Skip this line if you owe additional tax. If you are paying 1998 estimated tax, you may apply all or a portion of your 1997 refund to your 1998 estimated tax. On line 20, fill in the portion of line 19 you want to apply toward your 1998 estimated tax. Line 21 Minnesota income tax refund Subtract the amount from line 20, if any, from line 19 and fill in the result on line 21. This is your 1997 Minnesota income tax refund. (If the amount is $1 or, you will not receive a refund.) Line 22 State and municipal bond interest Fill in the amount of interest or dividends received from bonds or a bond mutual fund which invests in non-minnesota state or municipal securities. [M.S , subd. 19a(1)] Line 23 State income tax Fill in the amount of state income tax deducted on the federal return. State income tax deductions are not allowed on the Minnesota return. [M.S , subd. 19a(2)] 4

5 Form M-2, lines 24-36, Allocation of adjustments Lines 24 and 25 Shareholders of financial institutions Beginning in 1997, financial institutions can elect to be taxed as an S corporation for federal purposes. However, Minnesota will continue to tax these financial institutions as C corporations. Therefore, if you are a fiduciary who is a shareholder of an electing financial institution, any distriions, losses or deductions passed through to it from the financial institution must be added back to federal taxable income. Line 27 Interest on U.S. bonds Fill in the interest from bonds, securities, notes, or other obligations of the U.S. government, its possessions, agencies, or instrumentalities exempt from state income tax by federal law. This includes interest earned from a mutual fund that invests in the above securities. Attach a statement from the fund indicating the proportionate amount of interest that is due to interest earned on the above securities. Do not fill in interest received on refunds of federal income tax. [M.S , subd. 19b(1)] Line 28 State income tax refunds Income tax refunded by Minnesota or any other taxing jurisdiction that was included as income on the federal return is not taxed by Minnesota. [M.S , subd. 19b(2)] Line 29 Retirement plan contriions not previously allowed Recovery of distriions from a retirement plan where contriions were originally not deducted if: distriions were received from an IRA or Keogh plan to which contriions were made in 1982, 1983, and/or 1984, OR distriions were received from a Minnesota state, local government, or school district retirement plan to which contriions were made in 1983 and/or 1984, AND the contriions not allowed in previous years were not since recovered. However, the subtraction cannot exceed the income from that retirement plan which is included as income on line 1 of Form M-2. [M.S , subd. 19b(4)] Line 30 Recovery of ACRS deductions You may subtract one-fifth of any ACRS deductions that were required to be added to federal adjusted gross income in determining Minnesota gross income in years 1981 through 1984, and were not previously deducted in a later taxable year. This deduction can only be used for assets that were fully depreciated for federal purposes by the end of the 1996 tax year. If an asset was sold in 1997 that has a higher Minnesota basis than federal basis, fill in the smaller of: Any ACRS deductions that were required to be added to federal adjusted gross income in determining Minnesota gross income for tax years 1981 through 1984 and were not previously deducted in a later tax year, OR The amount of capital gain recognized and the amount of ACRS deductions that were subject to recapture under Sections 1245 and 1250 of the Internal Revenue Code. [M.S , subd. 19g] Allocation of adjustments The beneficiary(s) of a trust or an estate must file individual income tax returns to report their portion of the income distried. A resident beneficiary must report all income from the trust or estate. A nonresident beneficiary must report income which is assignable to Minnesota. The purpose of this section is to allocate any adjustments noted on lines 22 through 33 between the beneficiary(s) and fiduciary. If all the income is retained by the trust or estate, then any adjustment is allocated entirely to the fiduciary. If all of the income is distried, then any adjustment is passed through to the beneficiary(s) in proportion to their share of distriable net income. If part of the income is retained and part distried, then part of the adjustment is allocated to the fiduciary and part to the beneficiary(s). The share for the fiduciary and each beneficiary in column E is the same percentage of each share of federal distriable net income to the total distriable net income the amount listed on Form 1041, Schedule B, line 7. Divide the amount of each share by the total distriable net income to determine the percentage. Where the adjustment is an addition, that portion of the adjustment allocated to each beneficiary and to the fiduciary must be shown as an addition. Where the adjustment is a subtraction, that part of the adjustment allocated to each beneficiary and to the fiduciary must be shown as a subtraction. Lines 31 and 32 Shareholders of financial institutions Beginning in 1997, financial institutions can elect to be taxed as an S corporation for federal purposes. However, Minnesota will continue to tax these financial institutions as C corporations. Therefore, if you are a fiduciary who is a shareholder of an electing financial institution, any income or gains passed through to you from the financial institution may be subtracted from your federal taxable income. Also, if in 1997 you sold stock in the electing financial institution and the federal basis of stock is lower than the Minnesota basis, you may subtract the difference. Use the following procedure to show the allocation of adjustments: Column C Fill in next to each beneficiary and the fiduciary the federal distriable net income assigned to each as determined for federal purposes. Add these amounts and fill in the total on line 36, column C. Column D To obtain the proper percentage, divide each Share of federal distriable net income in column C by the total on line 36, column C. Fill in this percentage in column D next to the Share of federal distriable net income used to figure each share. Column E To obtain the proper share for each beneficiary and the fiduciary, multiply the adjustment on line 36 in column E under additions and subtractions by the percentage in column D opposite each beneficiary and fiduciary. Fill in under additions or subtractions in column E each amount next to the percentage used to determine the amount. Any adjustment needed on the beneficiary s individual return should be reported on Minnesota Schedule M-KF. Any adjustment allocated to the fiduciary in column E, line 35, must be reported on Form M-2 as an addition on line 5 or a subtraction on line 7. If there is no federal distriable net income, the adjustment, if any, is distried according to the terms of the will or trust instrument or according to Minnesota law. 5

6 1997 Tax Tables your tax your tax 7,900 8, ,000 8, ,100 8, ,200 8, ,300 8, your tax 15,900 16,000 1,035 16,000 16,100 1,043 16,100 16,200 1,051 16,200 16,300 1,059 16,300 16,400 1,067 your tax 23,900 24,000 1,675 24,000 24,100 1,683 24,100 24,200 1,691 24,200 24,300 1,699 24,300 24,400 1, ,400 8, ,500 8, ,600 8, ,700 8, ,800 8, ,400 16,500 1,075 16,500 16,600 1,083 16,600 16,700 1,091 16,700 16,800 1,099 16,800 16,900 1,107 24,400 24,500 1,715 24,500 24,600 1,723 24,600 24,700 1,731 24,700 24,800 1,739 24,800 24,900 1, , ,000 1, ,100 1, ,200 1, ,300 1, ,900 9, ,000 9, ,100 9, ,200 9, ,300 9, ,900 17,000 1,115 17,000 17,100 1,123 17,100 17,200 1,131 17,200 17,300 1,139 17,300 17,400 1,147 24,900 25,000 1,755 25,000 25,100 1,763 25,100 25,200 1,771 25,200 25,300 1,779 25,300 25,400 1,787 1,400 1, ,500 1, ,600 1, ,700 1, ,800 1, ,400 9, ,500 9, ,600 9, ,700 9, ,800 9, ,400 17,500 1,155 17,500 17,600 1,163 17,600 17,700 1,171 17,700 17,800 1,179 17,800 17,900 1,187 25,400 25,500 1,795 25,500 25,600 1,803 25,600 25,700 1,811 25,700 25,800 1,819 25,800 25,900 1,827 1,900 2, ,000 2, ,100 2, ,200 2, ,300 2, ,900 10, ,000 10, ,100 10, ,200 10, ,300 10, ,900 18,000 1,195 18,000 18,100 1,203 18,100 18,200 1,211 18,200 18,300 1,219 18,300 18,400 1,227 25,900 26,000 1,835 26,000 26,100 1,843 26,100 26,200 1,851 26,200 26,300 1,859 26,300 26,400 1,867 2,400 2, ,500 2, ,600 2, ,700 2, ,800 2, ,400 10, ,500 10, ,600 10, ,700 10, ,800 10, ,400 18,500 1,235 18,500 18,600 1,243 18,600 18,700 1,251 18,700 18,800 1,259 18,800 18,900 1,267 26,400 26,500 1,875 26,500 26,600 1,883 26,600 26,700 1,891 26,700 26,800 1,899 26,800 26,900 1,907 2,900 3, ,000 3, ,100 3, ,200 3, ,300 3, ,900 11, ,000 11, ,100 11, ,200 11, ,300 11, ,900 19,000 1,275 19,000 19,100 1,283 19,100 19,200 1,291 19,200 19,300 1,299 19,300 19,400 1,307 26,900 27,000 1,915 27,000 27,100 1,923 27,100 27,200 1,931 27,200 27,300 1,939 27,300 27,400 1,947 3,400 3, ,500 3, ,600 3, ,700 3, ,800 3, ,400 11, ,500 11, ,600 11, ,700 11, ,800 11, ,400 19,500 1,315 19,500 19,600 1,323 19,600 19,700 1,331 19,700 19,800 1,339 19,800 19,900 1,347 27,400 27,500 1,955 27,500 27,600 1,963 27,600 27,700 1,971 27,700 27,800 1,979 27,800 27,900 1,987 3,900 4, ,000 4, ,100 4, ,200 4, ,300 4, ,900 12, ,000 12, ,100 12, ,200 12, ,300 12, ,900 20,000 1,355 20,000 20,100 1,363 20,100 20,200 1,371 20,200 20,300 1,379 20,300 20,400 1,387 27,900 28,000 1,995 28,000 28,100 2,003 28,100 28,200 2,011 28,200 28,300 2,019 28,300 28,400 2,027 4,400 4, ,500 4, ,600 4, ,700 4, ,800 4, ,400 12, ,500 12, ,600 12, ,700 12, ,800 12, ,400 20,500 1,395 20,500 20,600 1,403 20,600 20,700 1,411 20,700 20,800 1,419 20,800 20,900 1,427 28,400 28,500 2,035 28,500 28,600 2,043 28,600 28,700 2,051 28,700 28,800 2,059 28,800 28,900 2,067 4,900 5, ,000 5, ,100 5, ,200 5, ,300 5, ,900 13, ,000 13, ,100 13, ,200 13, ,300 13, ,900 21,000 1,435 21,000 21,100 1,443 21,100 21,200 1,451 21,200 21,300 1,459 21,300 21,400 1,467 28,900 29,000 2,075 29,000 29,100 2,083 29,100 29,200 2,091 29,200 29,300 2,099 29,300 29,400 2,107 5,400 5, ,500 5, ,600 5, ,700 5, ,800 5, ,400 13, ,500 13, ,600 13, ,700 13, ,800 13, ,400 21,500 1,475 21,500 21,600 1,483 21,600 21,700 1,491 21,700 21,800 1,499 21,800 21,900 1,507 29,400 29,500 2,115 29,500 29,600 2,123 29,600 29,700 2,131 29,700 29,800 2,139 29,800 29,900 2,147 5,900 6, ,000 6, ,100 6, ,200 6, ,300 6, ,900 14, ,000 14, ,100 14, ,200 14, ,300 14, ,900 22,000 1,515 22,000 22,100 1,523 22,100 22,200 1,531 22,200 22,300 1,539 22,300 22,400 1,547 29,900 30,000 2,155 30,000 30,100 2,163 30,100 30,200 2,171 30,200 30,300 2,179 30,300 30,400 2,187 6,400 6, ,500 6, ,600 6, ,700 6, ,800 6, ,400 14, ,500 14, ,600 14, ,700 14, ,800 14, ,400 22,500 1,555 22,500 22,600 1,563 22,600 22,700 1,571 22,700 22,800 1,579 22,800 22,900 1,587 30,400 30,500 2,195 30,500 30,600 2,203 30,600 30,700 2,211 30,700 30,800 2,219 30,800 30,900 2,227 6,900 7, ,000 7, ,100 7, ,200 7, ,300 7, ,900 15, ,000 15, ,100 15, ,200 15, ,300 15, ,900 23,000 1,595 23,000 23,100 1,603 23,100 23,200 1,611 23,200 23,300 1,619 23,300 23,400 1,627 30,900 31,000 2,235 31,000 31,100 2,243 31,100 31,200 2,251 31,200 31,300 2,259 31,300 31,400 2, ,400 7, ,500 7, ,600 7, ,700 7, ,800 7, ,400 15, ,500 15,600 1,003 15,600 15,700 1,011 15,700 15,800 1,019 15,800 15,900 1,027 23,400 23,500 1,635 23,500 23,600 1,643 23,600 23,700 1,651 23,700 23,800 1,659 23,800 23,900 1,667 31,400 31,500 2,275 31,500 31,600 2,283 31,600 31,700 2,291 31,700 31,800 2,299 31,800 31,900 2,307

7 1997 Tax Tables your tax 31,900 32,000 2,315 32,000 32,100 2,323 32,100 32,200 2,331 32,200 32,300 2,339 32,300 32,400 2,347 your tax 38,900 39,000 2,875 39,000 39,100 2,883 39,100 39,200 2,891 39,200 39,300 2,899 39,300 39,400 2,907 your tax 45,900 46,000 3,435 46,000 46,100 3,443 46,100 46,200 3,451 46,200 46,300 3,459 46,300 46,400 3,467 your tax 52,900 53,000 4,020 53,000 53,100 4,028 53,100 53,200 4,037 53,200 53,300 4,045 53,300 53,400 4,054 32,400 32,500 2,355 32,500 32,600 2,363 32,600 32,700 2,371 32,700 32,800 2,379 32,800 32,900 2,387 39,400 39,500 2,915 39,500 39,600 2,923 39,600 39,700 2,931 39,700 39,800 2,939 39,800 39,900 2,947 46,400 46,500 3,475 46,500 46,600 3,483 46,600 46,700 3,491 46,700 46,800 3,499 46,800 46,900 3,507 53,400 53,500 4,062 53,500 53,600 4,071 53,600 53,700 4,079 53,700 53,800 4,088 53,800 53,900 4,096 32,900 33,000 2,395 33,000 33,100 2,403 33,100 33,200 2,411 33,200 33,300 2,419 33,300 33,400 2,427 39,900 40,000 2,955 40,000 40,100 2,963 40,100 40,200 2,971 40,200 40,300 2,979 40,300 40,400 2,987 46,900 47,000 3,515 47,000 47,100 3,523 47,100 47,200 3,531 47,200 47,300 3,539 47,300 47,400 3,547 53,900 54,000 4,105 54,000 54,100 4,113 54,100 54,200 4,122 54,200 54,300 4,130 54,300 54,400 4,139 33,400 33,500 2,435 33,500 33,600 2,443 33,600 33,700 2,451 33,700 33,800 2,459 33,800 33,900 2,467 40,400 40,500 2,995 40,500 40,600 3,003 40,600 40,700 3,011 40,700 40,800 3,019 40,800 40,900 3,027 47,400 47,500 3,555 47,500 47,600 3,563 47,600 47,700 3,571 47,700 47,800 3,579 47,800 47,900 3,587 54,400 54,500 4,147 54,500 54,600 4,156 54,600 54,700 4,164 54,700 54,800 4,173 54,800 54,900 4,181 33,900 34,000 2,475 34,000 34,100 2,483 34,100 34,200 2,491 34,200 34,300 2,499 34,300 34,400 2,507 40,900 41,000 3,035 41,000 41,100 3,043 41,100 41,200 3,051 41,200 41,300 3,059 41,300 41,400 3,067 47,900 48,000 3,595 48,000 48,100 3,603 48,100 48,200 3,612 48,200 48,300 3,620 48,300 48,400 3,629 54,900 55,000 4,190 55,000 55,100 4,198 55,100 55,200 4,207 55,200 55,300 4,215 55,300 55,400 4,224 34,400 34,500 2,515 34,500 34,600 2,523 34,600 34,700 2,531 34,700 34,800 2,539 34,800 34,900 2,547 41,400 41,500 3,075 41,500 41,600 3,083 41,600 41,700 3,091 41,700 41,800 3,099 41,800 41,900 3,107 48,400 48,500 3,637 48,500 48,600 3,646 48,600 48,700 3,654 48,700 48,800 3,663 48,800 48,900 3,671 55,400 55,500 4,232 55,500 55,600 4,241 55,600 55,700 4,249 55,700 55,800 4,258 55,800 55,900 4,266 34,900 35,000 2,555 35,000 35,100 2,563 35,100 35,200 2,571 35,200 35,300 2,579 35,300 35,400 2,587 41,900 42,000 3,115 42,000 42,100 3,123 42,100 42,200 3,131 42,200 42,300 3,139 42,300 42,400 3,147 48,900 49,000 3,680 49,000 49,100 3,688 49,100 49,200 3,697 49,200 49,300 3,705 49,300 49,400 3,714 55,900 56,000 4,275 56,000 56,100 4,283 56,100 56,200 4,292 56,200 56,300 4,300 56,300 56,400 4,309 35,400 35,500 2,595 35,500 35,600 2,603 35,600 35,700 2,611 35,700 35,800 2,619 35,800 35,900 2,627 42,400 42,500 3,155 42,500 42,600 3,163 42,600 42,700 3,171 42,700 42,800 3,179 42,800 42,900 3,187 49,400 49,500 3,722 49,500 49,600 3,731 49,600 49,700 3,739 49,700 49,800 3,748 49,800 49,900 3,756 56,400 56,500 4,317 56,500 56,600 4,326 56,600 56,700 4,334 56,700 56,800 4,343 56,800 56,900 4,351 35,900 36,000 2,635 36,000 36,100 2,643 36,100 36,200 2,651 36,200 36,300 2,659 36,300 36,400 2,667 42,900 43,000 3,195 43,000 43,100 3,203 43,100 43,200 3,211 43,200 43,300 3,219 43,300 43,400 3,227 49,900 50,000 3,765 50,000 50,100 3,773 50,100 50,200 3,782 50,200 50,300 3,790 50,300 50,400 3,799 56,900 57,000 4,360 57,000 57,100 4,368 57,100 57,200 4,377 57,200 57,300 4,385 57,300 57,400 4,394 36,400 36,500 2,675 36,500 36,600 2,683 36,600 36,700 2,691 36,700 36,800 2,699 36,800 36,900 2,707 43,400 43,500 3,235 43,500 43,600 3,243 43,600 43,700 3,251 43,700 43,800 3,259 43,800 43,900 3,267 50,400 50,500 3,807 50,500 50,600 3,816 50,600 50,700 3,824 50,700 50,800 3,833 50,800 50,900 3,841 57,400 57,500 4,402 57,500 57,600 4,411 57,600 57,700 4,419 57,700 57,800 4,428 57,800 57,900 4,436 36,900 37,000 2,715 37,000 37,100 2,723 37,100 37,200 2,731 37,200 37,300 2,739 37,300 37,400 2,747 43,900 44,000 3,275 44,000 44,100 3,283 44,100 44,200 3,291 44,200 44,300 3,299 44,300 44,400 3,307 50,900 51,000 3,850 51,000 51,100 3,858 51,100 51,200 3,867 51,200 51,300 3,875 51,300 51,400 3,884 57,900 58,000 4,445 58,000 58,100 4,453 58,100 58,200 4,462 58,200 58,300 4,470 58,300 58,400 4,479 37,400 37,500 2,755 37,500 37,600 2,763 37,600 37,700 2,771 37,700 37,800 2,779 37,800 37,900 2,787 44,400 44,500 3,315 44,500 44,600 3,323 44,600 44,700 3,331 44,700 44,800 3,339 44,800 44,900 3,347 51,400 51,500 3,892 51,500 51,600 3,901 51,600 51,700 3,909 51,700 51,800 3,918 51,800 51,900 3,926 58,400 58,500 4,487 58,500 58,600 4,496 58,600 58,700 4,504 58,700 58,800 4,513 58,800 58,900 4,521 37,900 38,000 2,795 38,000 38,100 2,803 38,100 38,200 2,811 38,200 38,300 2,819 38,300 38,400 2,827 44,900 45,000 3,355 45,000 45,100 3,363 45,100 45,200 3,371 45,200 45,300 3,379 45,300 45,400 3,387 51,900 52,000 3,935 52,000 52,100 3,943 52,100 52,200 3,952 52,200 52,300 3,960 52,300 52,400 3,969 58,900 59,000 4,530 59,000 59,100 4,538 59,100 59,200 4,547 59,200 59,300 4,555 59,300 59,400 4,564 38,400 38,500 2,835 38,500 38,600 2,843 38,600 38,700 2,851 38,700 38,800 2,859 38,800 38,900 2,867 45,400 45,500 3,395 45,500 45,600 3,403 45,600 45,700 3,411 45,700 45,800 3,419 45,800 45,900 3,427 52,400 52,500 3,977 52,500 52,600 3,986 52,600 52,700 3,994 52,700 52,800 4,003 52,800 52,900 4,011 59,400 59,500 4,572 59,500 59,600 4,581 59,600 59,700 4,589 59,700 59,800 4,598 59,800 59,900 4,606 59,900 60,000 4,615 If the amount on line 10 of Form M-2 is.. at subtract from the amount on multiply the least than line 10 of Form M-2 result by and add: $60,000 $60, $4, and fill in the result on line 11 of Form M-2 7

8 Minnesota fiduciary income tax information Call: (612) Or write to: Minnesota Fiduciary Income Tax Mail Station 5170 St. Paul, MN Hearing, speech or visually impaired? TDD/TTY users may contact the department through Minnesota Relay Service at ; ask for or If you need information in an alternative format (such as Braille, large print or cassette tape), we will provide it. Pay taxes electronically You can register to make your payments by EFT even if you are not required to do so. For more information about using EFT or to request an authorization form, call: (612) or Need forms? You may: Download forms and other tax-related information from our web site: Photocopy the forms you need at most public libraries. Ask for Package XM, a book of Minnesota tax forms, and photocopy the forms you need. Pick up Minnesota tax forms at the Department of Revenue building at 10 River Park Plaza, near the corner of South Robert Street and Fillmore Avenue in St. Paul. Request forms by mail. Write to: Minnesota Tax Forms Mail Station 1421 St. Paul, MN Order forms by calling: (612) or Commonly asked questions Q: What is a fiduciary? A: A fiduciary is a person in a position of trust, for example, the trustee of a trust or a personal representative of an estate. Q: What is a fiduciary return? A: A fiduciary return is an income tax return of an estate or trust. The federal return is Form 1041 and the Minnesota return is Form M-2. Q: Who files the fiduciary return? A: The trustee of a trust or the personal representative of an estate, in other words, the fiduciary. Q: Do I have to make estimated payments? A: If you are a trust with an estimated Minnesota tax of $500 or more, you must file and pay estimated tax. Estates are not required to make estimated tax payments. Q: How do I notify the beneficiaries of any adjustments they must make on their Minnesota individual returns? A: Provide each beneficiary with a completed Schedule M-KF, Beneficiary s Share of Minnesota Taxable Income. If there are no modifications, there is no need to issue Schedule M-KF to Minnesota beneficiaries. However, nonresident beneficiaries will need the schedule to determine their Minnesota taxable income. Use one of these mailing labels on your own envelope to mail your Form M-2 and copies of your federal returns and schedules. (Cut on the dotted line and tape to your envelope.) MINNESOTA Department of Revenue Fiduciary Income Tax St. Paul, Minnesota MINNESOTA Department of Revenue Fiduciary Income Tax St. Paul, Minnesota