#FIFTY NIFTY UNITED STATES FULL#

Exceptions to the estimated tax obligation include a trust that was a full year resident for the prior year but did not file because it had a zero Connecticut tax liability and a nonresident trust that had prior year Connecticut source income but did not file because it had a zero Connecticut tax liability. In the initial year of filing, the trust must remit 90% of its current year tax to avoid underestimated tax penalties. For instance, Connecticut requires estimated tax payments equal to 90% of the current year tax or 100% of the prior year tax if the prior year included a full twelve month period. Most states determine the taxable amount by starting with the federal taxable amount and then making certain adjustments.Įstimated tax payments, too, come with distinct rules. In addition, each state provides its own definitions of modifications to arrive at taxable income, deductions, and credits. While a state by state review of the specific rules is beyond the scope of this article, one must understand the importance of identifying the connections a trust has to a particular state (or multiple states) and the unique rules that each state may employ for subjecting a trust to income taxation.

The basis for taxation as a resident trust differs in each state.

New Hampshire no longer taxes interest and dividends earned by non-grantor trusts though it does still have an entity level tax on business activities engaged in by the trust. Compliance issues: New England StatesĪll of the New England states other than New Hampshire have a broad based income taxation regime of trusts. Researching and understanding the tax laws of each state with a possible connection to the trust is essential to providing complete and accurate tax return compliance.

Thus, state income taxation of trusts is an area with an overabundance of rules at play. (Originally presented at New Hampshire’s 32nd Annual Tax Forum in November 2014)įorty-two states and the District of Columbia impose an income tax on resident trusts as well as state-sourced income of nonresident trusts. Reproduction Information: Call No.: LOT 13163-33, no.By Jean McDevitt Bullens FebruState Income Taxation of Trusts Reproduction Information: Call No.: G3700 2002. A summary of his lecture was featured in the September issue of the Library of Congress Information Bulletin.Ī. turned 100 in 1876? Or that 'Mississippi' comes from an Indian word meaning 'great waters' or 'father of waters.' Perhaps it’s no coincidence that Muddy Waters, the father of Chicago blues, was born and raised in the southern state.Īnd, for even further research (are you exhausted yet?), the Library’s Digital Reference Team has put together a guide referencing state digital resources – including memory projects, online encyclopedias, and historical and cultural materials collections – from across the Web.Īuthor Mark Stein put the Library’s state resources to work for his book “How the States Got Their Shapes,” which he discussed during a book talk in 2008. Did you know that Colorado is called the 'Centennial State' because it became the 38th state when the U.S. The Explore the States presentation from America’s Library offers up even more tidbits of state history. From Alaska’s Iditarod to Florida’s Manatee Festival, the project documented community life, signature events and historical observations to create a “century’s-end time capsule.” The project provides a 'snapshot' of American culture as it was expressed in spring of 2000, in communities from every state in the nation. If you enjoy delving into your state’s cultural history, you want to make sure to check out the Library’s Local Legacies Project.

Fifty nifty united states