topic Massachusetts Fiduciary Income Tax Return - Non-Resident Beneficiary in State tax filing

Massachusetts Fiduciary Income Tax Return - Non-Resident Beneficiary

B Parker — Thu, 19 Feb 2026 18:10:41 GMT

Massachusetts Fiduciary Income Tax Return - Non-Resident Beneficiary and all income is non-Massachusetts source. Trust is a Massachusetts resident Trust by virtue of its trustee being a Massachusetts resident. My understanding is with non-resident beneficiaries only the Massachusetts-sourced income is taxable. Since all of the income of the Irrevocable trust is interest and dividends from mutual funds (intangible personal property) it is not considered Massachusetts-source income. Mass Gen Laws ch 62 sec 5A(a).

As a resident-trust it is 'subject to Massachusetts jurisdiction', i.e., Massachusetts asserts taxing jurisdiction over the trust based on residency (irrespective of income source). Turning to income, Massachusetts requires inclusion of all income and then in this case subtraction of all income (because it is non-MA sourced and entirely allocated to non-resident beneficiary).

I believe the result is a filing would seem warranted despite there being no tax liability.

Using TurboTax Massachusetts Fiduciary return software I'm unable to figure out how to how to show that the income is not subject to tax in Massachusetts and 'zero out' any tax liability. What TurboTax form or table is used to show that the income is not subject to tax in Massachusetts and to 'zero out' any tax liability?

Any thoughtful feedback is much appreciated.

Re: Massachusetts Fiduciary Income Tax Return - Non-Resident Beneficiary

MaryK4 — Thu, 19 Feb 2026 01:24:52 GMT

If there is no Massachusetts source income, you do not need to file a Massachusetts Income Tax return.

Every executor, administrator, trustee, guardian, conservator, trustee in a noncorporate bankruptcy or receiver of a trust or estate that received income in excess of $100 that is taxable under MGL ch 62 at the entity level or to a beneficiary(ies) and that is subject to Massachusetts jurisdiction must file a Form 2.

See 2025 Form 2 Instructions.

Re: Massachusetts Fiduciary Income Tax Return - Non-Resident Beneficiary

B Parker — Thu, 19 Feb 2026 18:04:31 GMT

Thank you, MaryK4, for making the time to respond to my question and for your thoughtful and informative reply.

My apologies for my incomplete original post. It omitted (again with my apologies) that the Trust is a Massachusetts resident Trust by virtue of its trustee being a Massachusetts resident. [I’ll attempt to edit my original Post (if I can figure out how to do that).]