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2015 Minnesota Income Tax for Estates and Trusts

(Fiduciary) Form M2 Instructions

What’s New for 2015

Filing Requirements

1 was created by a will of a decedent who

at his or her death was a Minnesota resi-

An estate or trust - regardless if it is consid-

Update as of January 2017

Federal Changes Not Adopted by

dent, or

ered a resident - must file Form M2 when:

A bill signed into law on January 13,

Minnesota

2 is an irrevocable trust, and at the time

Definitions used in determining Minnesota

1. There is $600 or more of gross income

2017, conforms Minnesota law to

the trust became irrevocable, the grantor

allocable to Minnesota; or

taxable income are based on the Internal

federal law when determining federal

was a Minnesota resident. A trust is

Revenue Code, as amended through

2. There is a nonresident alien as a benefi-

taxable income for tax year 2015.

considered irrevocable if the grantor is

ciary.

December 31, 2014.

As a result, taxpayers are no longer

not treated as the owner as defined in sec-

[M.S. 289A.08.subd. 1]

Since that date, the U.S. Congress has

required to recompute Minnesota

tions 671 to 678 of the IRC.

enacted tax provisions that may affect your

Income allocable to Minnesota includes:

taxable income for Minnesota tax

Minnesota tax for tax year 2015.

For trusts that became irrevocable or were

• Income earned form a resident trust or

purposes.

first administered in Minnesota before

See the instructions on page 10 to determine

estate;

January 1, 1996: A resident trust means any

if you need to make adjustments to your

• Income earned from Minnesota real or

trust administered in Minnesota.

Minnesota return.

tangible property of a nonresident trust

or estate; or

Continue to check our website for further

To be considered a resident trust adminis-

• Business income apportioned to Minne-

updates.

tered in Minnesota, you must meet two of

sota from a nonresident trust or estate.

Power of Attorney Elections

the following three criteria:

[M.S. 290.17]

Starting for all returns filed in 2015, power

• A majority of the discretionary invest-

of attorney elections are no longer accepted

When required, the trustee of a trust or the

ment decisions are made in Minnesota,

for firms or companies. A power of attorney

personal representative of an estate is re-

• The majority of discretionary distribution

sponsible for filing the Minnesota Form M2,

election must be made for each individual

decisions are made in Minnesota, and

Income Tax Return for Estates and Trusts

that the taxpayer elects for representation.

• The trust’s official books and records are

(Fiduciaries) and for paying the tax.

Payment Voucher System

kept in Minnesota.

The department no longer offers blank paper

Bankruptcy estates. If the fiduciary of a

[M.S. 290.01, subd. 7b]

payment vouchers. To create a personlized

bankruptcy estate of a Minnesota resident

voucher, go to and

filed a federal return, a Minnesota return

Before You File

must also be filed. Use Form M1, Individual

type Payment Voucher in the search box.

Income Tax Return, to determine the Min-

Complete a Federal Return

New Form Format

nesota tax and attach it to Form M2. File it

Before you complete Form M2, complete

Due to some formatting changes, our 2015

in the same way you file federal returns.

forms may look different and may have

federal Form 1041, U.S. Income Tax Return

for Estates and Trusts, and supporting

additional pages.

Resident estates. An estate is considered

a Minnesota estate if:

schedules. You will need to reference them.

Questions?

• the decedent was a resident of Min nesota

Complete

at the time of death, or

If you are a:

federal Form:

You can find forms and information, including

• the personal representative or fidu ciary

answers to frequently asked questions and

Charitable remainder (enter

was appointed by a Minnesota court—or

options for filing and paying electronically, on

zero on Form M2, lines 1 and 9) . . . . 1041A

the court administration was performed

our website at:

or charitable lead trust . . . . . . . . . . . .or 5227

in Minnesota—in other than an ancillary

pro ceeding.

Send us an e-mail at:

Designated or qualified settlement

businessincome.tax@state.mn.us

fund (under IRC section 468B) . . . . 1120-SF

File the first Form M2 cov ering the period

Call us at 651-556-3075

from the date of the decedent’s death to the

Qualified funeral trust . . . . . . . . . 1041-QFT

end of the tax year. Be sure to check the box

Need Forms?

Electing small business trust (ESBT) . . 1041

to indicate it is the fiduciary’s initial return.

Go to .

Minnesota Tax ID Number

File subsequent returns for later years until

We’ll provide information in another format

the end of the estate’s ad ministration period.

Your Minnesota tax ID is the seven-digit

upon request to persons with disabilities.

number you’re assigned when you register

Resident trusts. The definition of a

Contents

with the department. It’s important to in-

resident trust differs depending on the

What’s new . . . . . . . . . . . . . . . . . . . . . . . . . . 1

clude your Minnesota tax ID on your return

date—before or after December 31, 1995—

General information . . . . . . . . . . . . . . . . .1–3

so that any payments you make are properly

the trust becomes irrevocable or is first

Filing requirements . . . . . . . . . . . . . . . . . 1

credited to your account.

administered in Minnesota.

Before you file . . . . . . . . . . . . . . . . . . . . . 1

Due dates and extensions . . . . . . . . . . . 2

If you don’t have a Minnesota tax

For trusts that became irrevocable or were

Payment options . . . . . . . . . . . . . . . . . . . 2

ID, you must apply for one. Go to

first administered in Minnesota after De-

M2 line instructions . . . . . . . . . . . . . . . . .4–8

and type Business

cember 31, 1995: A resident trust means a

Federal Changes Not Adopted

See “Update” above

Registration on the search box or call 651-

trust, except a grantor type trust, that either:

by Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . 9

282-5225 or 1-800-657-3605.

Allocation of adjustments. . . . . . . . . . . . . . . 9

Tax tables. . . . . . . . . . . . . . . . . . . . . . . 10–13

Instructions For Form M2 - Minnesota Income Tax For Estates And Trusts (Fiduciary) - 2015

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