Form M2 — Income Tax Return for Estates and Trusts (2025)

# 2025 Form M2, Income Tax Return for Estates and Trusts

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Do not use staples on anything you submit.
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Tax year beginning (MM/DD/YYYY)
Name of Estate or Trust Federal ID Number Minnesota ID Number Number of Schedules KF
Check if name has changed:
Name and title of fiduciary
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Decedent's Social Security Number Date of Death Number of Beneficiaries
Check if address has changed:
Current address of fiduciary Fiduciary City Fiduciary State Fiduciary ZIP Code
Decedent's last address or grantor's address when trust became irrevocable
Check all that apply:

Initial Return

Grantor Trust
Irrevocable Trust — Date trust became irrevocable
Decedent's Estate — Gross value of estate

Form M706 Filed
Bankruptcy Estate —

Debtor Social Security Number (SSN)
If filing jointly, second debtor SSN
Decedent or Grantor City Decedent or Grantor State Decedent or Grantor ZIP

Section 645 Election

Final Return
ESBT

Statutory Resident
QSST

Statutory Nonresident

Trust/Estate Owns or

Due Process Nonresident (see Schedule M2RT)
Operates a Business —
FEIN

Composite Income Tax

# Tax Position Disclosure

Installment sale of passthrough assets or interests (enclose Form TPD)
1 Federal taxable income (from line 23 of federal Form 1041) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Fiduciary's deductions and losses not allowed by Minnesota (enclose Schedule M2NM) . . . . . . . . . . . . . . . . . . . . . . . 2 3 Capital gain amount of lump-sum distribution (enclose federal Form 4972) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Additions (from line 77, column E of this form) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Add lines 1 through 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Subtractions (from line 77, column E of this form) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Fiduciary's income from non-Minnesota sources (enclose Schedule M2NM) . . . . . . . . 7 8 Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 Minnesota taxable net income. Subtract line 8 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 Tax from table in Form M2 instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 Tax from S portion of an Electing Small Business Trust (enclose Schedule M2SB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Minnesota Net Investment Income Tax (enclose Schedule NIIT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Total of tax from (enclose appropriate schedules): b. Schedule M2MT . . . . . . . . 13 a. Schedule M1LS 14 Composite income tax for nonresident beneficiaries (enclose Schedules KF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

15 Total 2025 income tax. Add lines 10 through 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 16 Credit for taxes paid to another state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 Film Production Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Enter the credit certificate number: TAXC -18 Tax Credit for Owners of Agricultural Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Enter certificate number from the Rural Finance Authority:
AO -
19 State Housing Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Enter certificate number from Minnesota Housing: SHTC -20 Short Line Railroad Infrastructure Modernization Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Enter certificate number from the certificate you received from the Minnesota Department of Transportation: MN-SLR- -21 Credit for Sales of Manufactured Home Parks to Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 22 d. Nonrefundable Credit for Increasing Research Activities (see instructions; enclose Schedule KPI, KS, or KF) . . 22d e. Unused current-year nonrefundable credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22e f. Current-year credit carryover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22f 23 Other nonrefundable credits (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 24 Carryover credits from prior years (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 D — Name of Credit E — Certificate Number F — Unused Credit d1 e1 f1 d2 e2 f2 d3 e3 f3 25 Total nonrefundable credits. Add lines 16 through 21, 22d, 23, and 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 26 Subtract line 25 from line 15 (if result is zero or less, leave blank) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 27 Pass-Through Entity Tax Credit (enclose Schedule KPI, KS, or KF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 28 Minnesota income tax withheld (enclose documentation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 29 Total estimated tax payments and extension payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 30 Credit for Historic Structure Rehabilitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Enter National Park Service (NPS) project number:
31 Credit for sustainable aviation fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Enter certificate number from the Department of Agriculture
(continued)

32 Refundable Credit for Increasing Research Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 If you are electing a refundable portion of this credit, check this box 33 Other refundable credits (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 34 Add lines 27 through 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 35 Tax due. If line 26 is more than line 34, subtract line 34 from line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 36 Penalty (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 37 Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 38 Trusts only: Additional charge for underpaying estimated tax (enclose Schedule EST) . . . . . . . . . . . . . . . . . . . . . . . 38 39 AMOUNT DUE. If you entered an amount on line 35, add lines 35 through 38.
Check payment method: check electronic (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 40 Overpayment. If line 34 is more than the sum of lines 26 and 36 through 38, subtract the sum of lines 26 and 36 through 38 from line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 41 If you are paying estimated tax for 2026, enter the amount from line 40 you want applied to it, if any . . . . . . . . . . 41 42 REFUND. Subtract line 41 from line 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 43 To have your refund direct deposited, enter the following. Otherwise, you will receive a check.

Checking Savings
Account number (use an account not associated with any foreign banks)
Routing number
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Minnesota Tax ID or Social Security Number Date (MM/DD/YYYY)

Signature of Fiduciary or Officer Representing Fiduciary Direct Phone

Fiduciary E-mail Paid Preparer E-mail

E-mail Address for Correspondence, if Desired

Print Name of Contact

Paid Preparer's Signature Preparer's PTIN
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Date (MM/DD/YYYY) Direct Phone
I authorize the Minnesota Department of Revenue to discuss this tax return with the preparer.
I do not want my paid preparer to file my return electronically.
Enclose a copy of federal Form 1041, Schedules K-1, and other federal schedules.
Mail to:

Minnesota Fiduciary Income Tax

Mail Station 1310
600 N. Robert St.
St. Paul, MN 55146-1310

# Additions to Income

44 State and municipal bond interest from outside Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 45 State taxes deducted in arriving at net income, including amounts from pass-through entities . . . . . . . . . 45 46 Expenses deducted on your federal return that are attributable to income not taxed by Minnesota (other than interest or mutual fund dividends from U.S. bonds) . . . . . . . . . . . . . . . . . . . . . . 46 47 80 percent of the suspended loss from 2001-2005 or 2008-2024 on your federal return that was generated by bonus depreciation (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . 47 48 80 percent of federal bonus depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 49 Section 199A qualified business income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 50 Addition due to federal changes not adopted by Minnesota (Schedule M2NC, line 31) . . . . . . . . . . . . . . . . 50 51 Net operating loss (NOL) carryover adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 52 Foreign-derived intangible income (FDII) deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 53 Other additions (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 54 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 55 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 56 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 57 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 58 Add lines 44 through 57. Enter the result here and on line 78, column E, under Additions . . . . . . . . . . . . 58

# Subtractions from Income

59 Interest on U.S. government bond obligations, minus any expenses deducted on your federal return that are attributable to this income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 60 State income tax refund included on federal return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 61 Federal bonus depreciation subtraction (see instructions,) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 62 Subtraction due to federal changes not adopted by Minnesota (Schedule M2NC, line 31, as a positive number) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 63 Subtraction for railroad maintenance expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 64 Net operating loss carryover adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 65 Deferred foreign income (Section 965) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 66 Disallowed section 280E expenses of a licensed cannabis or hemp business . . . . . . . . . . . . . . . . . . . . . . . . 66 67 Delayed business interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 68 Delayed net operating loss deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
(continued)

69 Employee Retention Credit subtraction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 70 Other subtractions (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 71 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 72 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 73 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 74 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 75 Add lines 59 through 74. Enter the result here and on line 78, column E, under Subtractions . . . . . . . . . . 75 Allocation of Adjustments Between Fiduciary and Beneficiaries (see instructions)

A B C D E
Beneficiary's Social Share of federal Percent of total on Shares assignable to beneficiary and to fiduciary Name of each beneficiary Security number distributable net income line 78, column C Additions Subtractions 76 % % % % % % %

77 Fiduciary %

78 Total 100%
Enclose separate sheet, if needed.