Fiduciary Income Tax | Frequently Asked Questions

1. 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 and trusts can own property and receive income, just like an individual or business. Fiduciary income tax is the tax that is paid on income received by estates and trusts. 

2. Do I have to file a return? 

Yes, if the estate or trust receives income, then 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. 

3. My spouse recently passed away. How do I file our joint income tax return? 

If you are filing a joint Individual Income Tax Return (DR 0104) on behalf of a recently deceased spouse, visit the Deceased Taxpayer web page for more information.

4. Why do I have to do the Federal Income Tax Return first? 

Before preparing your Colorado Fiduciary Income Tax Return (DR 0105), you must determine your federal income tax by preparing your federal return first. Then you can complete the Colorado return. For information on how to file your federal return, including links to services where you can file both federal and state returns free of charge, see the Internal Revenue Service website

5. How do I request a copy of a tax return that was previously filed?

For information on how to request copies of tax returns, visit www.Colorado.gov/tax/request-return-copies.

6. I need to file a return for an estate or trust with Colorado derived income, but it is administered out-of-state. How do I determine my Colorado fiduciary income tax liability?

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

7. I need to file a return for a Bankruptcy Estate. What do I need to know? 

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 form DR 0104