Fiduciary Income Tax

What is Fiduciary Income Tax?

If you are responsible for overseeing an estate or trust, you are the fiduciary of that estate or trust. Estates can own property and receive income, just like an individual or business. If the estate or trust receives income, a fiduciary income tax return must be filed. For information on how to file a Fiduciary Income Tax Return (DR 0105), visit the Filing Information web page. However, if you are filing an Individual Income Tax Return (DR 0104) on behalf of a recently deceased taxpayer, visit the Deceased Taxpayer web page.

Estates & Trusts

Resident Estates and Trusts

A resident estate is an estate of a deceased person that is administered in Colorado. A resident trust is a trust that is administered in Colorado. Every resident estate and resident trust with Colorado-source income must file a Colorado Fiduciary Income Tax Return if it is required to file a federal income tax return, or if a resident estate or trust has a Colorado tax liability.  

Nonresident Estates and Trusts

A nonresident estate or nonresident trust are all estates or trusts that are not resident estates or trusts. Every nonresident estate or trust with Colorado-source income must file a  Colorado Fiduciary Income Tax Return if it is required to file a federal income tax return, or if a resident estate or trust has a Colorado tax liability.

The Colorado income tax of a nonresident estate or trust shall be what the tax would have been were it a resident estate or trust, and then apportioned in a ratio of Colorado taxable income to the modified federal taxable income. Use Schedule E on the Fiduciary Income Tax Return (DR 0105) to make the apportionment.

Bankruptcy Estates 

For bankruptcy estates with a Colorado filing requirement, complete the Fiduciary Income Tax return and provide supporting documentation for the estate only. DO NOT complete, submit, or attach the Colorado Individual Income Tax Return as part of the Colorado filing for a bankruptcy estate. For Colorado returns, the Fiduciary Income Tax Return is NOT used as a transmittal for the debtor's form Individual Income Tax Return.

Note: The filing of the bankruptcy estate's tax return does not relieve a debtor from the requirement to file his or her individual income tax return for Colorado income on the DR 0104.