No - Even though the income is distributed to the beneficiaries of the trust, you must file a MD fiduciary return if:
- the trust is required to file a federal fiduciary income tax return or is exempt from tax under Sections 408(e)(1) or 501 of the Internal Revenue Code (IRC), but is required to file federal Form 990-T to report unrelated business taxable income, and
- Has Maryland taxable income.
For more information, please see: MD Instructions for filing fiduciary income tax returns
