Fillable Form Awc - Alternative Withholding Certificate printable pdf download

AWC

Alternative Withholding Certificate for Year

for Nonresident Individual Partners and Shareholders

For use by nonresident individual partners or shareholders subject to Minnesota withholding . Complete a certificate each

year you wish to reduce the amount withheld by the partnership or S corporation .

First name and initial

Last name

Social Security number

Address (street, apartment number, route)

City

State

Zip code

1 Your estimated share of Minnesota distributive income from this partnership or S corporation

or your estimated total Minnesota taxable income for the tax year, whichever is less . . . . . . . . . . . 1

2 Multiply line 1 by 7 .85 percent ( .0785) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Minnesota individual estimated tax you paid for the tax year . . . . . . . . . . 3

4 Minnesota income tax withheld from other income (from Form W-2 or W-2P) 4

5 Add lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Subtract line 5 from line 2 . This is the amount you are requesting to be withheld . . . . . . . . . . . . . . 6

Partner or shareholder: I declare that this return is correct and complete to the best of my knowledge and belief.

Signature

Daytime phone number

Date

Partner or shareholder: Complete, sign and date this certificate . Give the original

To be completed by the entity:

form to the partnership or S corporation before the end of the entity’s tax year .

Name of partnership or S corporation

Partnership or S corporation: Enter the partnership’s or S corporation’s name, Min-

Minnesota ID number

Federal ID number

nesota and federal tax ID numbers at right . Include a copy of each AWC you receive

when you file your Form M3 or M8 tax return .

Instructions

Partnerships and S corporations are re-

• has Minnesota taxable income less than

each year you wish to change the amount

quired to withhold Minnesota income tax

the distributive income received from this

withheld by this partnership or S corpora-

for any nonresident individual partner or

entity, due to losses from other Minne-

tion.

shareholder who:

sota sources.

Filing Form AWC

• is not included in composite income tax,

Who should file Form AWC

and

Sign and date the completed form, and give

Complete this form if you are a nonresi-

• has Minnesota distributive income of

it to the partnership or S corporation before

dent individual partner of a partnership or

$1,000 or more.

the end of its tax year. The entity needs this

shareholder of an S corporation and you:

information before it can file its tax return.

The entity is required to withhold 7.85

percent of the partner’s or shareholder’s

• expect to receive Minnesota distribu-

Do not file this certificate with your Form

Minnesota source distributive income, less

tive income of $1,000 or more from this

M1 or send it directly to the department.

any credits that are passed through to the

partnership or S corporation, and

To claim the amount withheld, you must

partner or shareholder.

• you want less than 7.85 percent of your

file Form M1, Minnesota Individual Income

Minnesota source distributive income to

Tax Return, and include the Schedule KPI

However, the department will permit a

be withheld by the entity.

or KS you receive from the partnership or

smaller amount of tax to be withheld if it

more accurately reflects the Minnesota tax

S corporation.

If you intend to have 7.85 percent of your

the partner or shareholder owes. For ex-

distributive income to be withheld or you

If your Form AWC is found to be false, the

ample, a partner or shareholder may request

choose to be included in composite income

department may require that in future years

that the amount withheld be reduced if he

tax, there is no need to complete this form.

the partnership or S corporation withhold

or she:

the maximum percentage of your Minne-

Do not use this form for wage withholding.

• paid Minnesota estimated tax or had

sota distributive income, even if you submit

Minnesota withholding tax taken out of

This certificate is effective for one tax year.

an alternative withholding certificate.

wage income, or

You must complete a new Form AWC for

Rev . 8/06

Form Awc - Alternative Withholding Certificate

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