Instructions For 2003 Vermont Fiduciary Return Of Income (Page 3 of 3) in pdf

the Vermont return. A W-2 wage statement is not an

Lines 20a-b: Complete these lines if the estate or trust is

acceptable substitute for the other state or provincial return.

liable for tax on lump-sum distributions or recapture of

investment credit.

Line 11a: Estimated payments are not required to be made

for trusts and estates. However, if you chose to make

Line 20c: Add Lines 20a and 20b and multiply the sum by

"estimated" payments, enter the amount paid and/or the

24%.

amount paid with the Extension of Time to File on this line.

Lines 22a-b: Complete these lines if the estate or trust is

Line 11b: If Vermont real estate was sold during 2003 and

claiming an investment credit or prior year minimum tax

the buyer withheld Vermont income tax from the sales price,

credit.

enter the amount withheld from Form RW-171, Vermont

Line 22c: Add Lines 22a and 22b and multiply the sum by

Withholding Tax Return for Transfer of Real Property,

24%.

Schedule A, Line 12 here.

SCHEDULE C

For installment sales, the balance of the gain must be reported

Nonresident or part-year resident estates or trusts must first

to Vermont on future returns or elect to pay Vermont 6%

complete Schedule E to determine the non-Vermont portion

tax on the entire gain in the year of the sale. If you choose

of income used in calculating the adjustment percentage on

the 6% tax, include a letter with the return asking for the

Schedule C.

"6% Tax Elect Out for Vermont Purposes" and attach a copy

of the Federal Form 6252.

SCHEDULE D

A credit is available to Vermont resident and part-year

Line 11c: Enter on this line the amount of payments made

resident estates and trusts for income tax paid to another

on behalf of the estate or trust by a partnership, limited

state or Canadian province during the period of Vermont

liability company or S Corporation toward the 2003 Vermont

residency. The credit is the lesser of the income tax paid to

Fiduciary tax.

the other state/province or the Vermont tax due on that

SCHEDULE A

income. The credit cannot be taken for income taxes paid

Interest, dividend and other distribution income from non-

to another state or Canadian province while a resident of

VT state or local obligations are taxable in VT. If you receive

that state or province. If income tax was paid in more than

income from a mutual fund that has only a portion of its

one state or province, a separate computation must be done

assets invested in VT state and local obligations, all that

for each state or province. A copy of each of the other state

mutual fund income is taxable in VT.

or province fiduciary income tax returns must accompany

Income from VT state or local obligations are exempted

Form FI-161. Income tax paid is not the same as income

from VT taxable income only to the extent this income is

tax withheld by that state or Canadian province. Credit for

excluded from Federal adjusted gross income.

Canadian provincial income tax is limited to the portion not

used as a foreign tax credit on Federal Form 1041.

Line 16: Enter the total interest, dividend and distribution

income received from all state and local obligations

Line 30: Enter the adjusted gross income from sources

exempted from Federal tax.

outside Vermont. Include only income that is taxed by

Vermont and also taxed by another state or Canadian

Line 17: Enter the interest, dividend and distribution income

province. This will be different from the taxable income

from VT state and local obligations. This income may be

amount. Amounts on Canadian returns should be converted

paid directly or through a mutual fund or other legal entity

to US Dollars. For Qualified Settlement Funds enter the

that invests in VT state and local obligations. A VT

gross income from Form 1120-SF, Line 6, which is taxed in

obligation is one from the State of VT, a VT municipality,

Vermont and in the other state or province.

or a VT political subdivision.

Line 31: Enter the figure from the Federal Form 1041, Line

Line 18: Subtract Line 17 from Line 16. The result cannot

9. For Qualified Settlement Funds enter the figure from

be less than zero. This is the amount of interest, dividend

Federal Form 1120-SF, Line 6.

and distribution income from non-Vermont state and local

obligations that must be included in taxable income for

Line 34: Enter only the amount of tax on income from

Vermont.

Line 30 that is paid to another state(s) or Canadian

province(s). City or County tax is not eligible for this credit.

SCHEDULE B

If estate or trust filed Federal Form 1041, use Lines 19-23.

SCHEDULE E

If Federal Form 1120-SF was filed, use Lines 24-25.

Lines 36-43: Enter in Column A all the items comprising

Federal income as they appear on the Federal Form 1041.

Line 19: Compute the Vermont tax by using the 2003 tax

Enter in Column B the Vermont portion of all items listed

rate schedule printed in the instructions.

in Column A.

Instructions For 2003 Vermont Fiduciary Return Of Income Page 3

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