Schedule K-1-T(2) - Beneficiary'S Instructions printable pdf download

Illinois Department of Revenue

Schedule K-1-T(2) Beneficiary’s Instructions

What does Column A represent?

General Information

Column A represents your specific share of the trust’s or the estate’s

What is the purpose of Schedule K-1-T?

income and modifications. The trust or estate is required to complete this

column if any part of the trust’s or estate’s income was paid, credited, or

The trust or estate listed on the front of Schedule K-1-T has completed

distributed, or deemed to have been paid, credited, or distributed by the

and provided you with the schedule that reflects your share of the trust’s

trust or estate to you. If you were a resident of Illinois on the last day of

or estate’s income and modifications. Use this completed schedule

the trust’s or estate’s taxable year, all amounts in Column A must be

and these instructions to help you report the items shown on Schedule

included as income, modifications, and credits allocated to Illinois. If

K-1-T on your Illinois Income Tax return. You must attach a copy of

you were a resident of Illinois on the last day of the trust’s or estate’s

Schedule K-1-T to the tax return you are filing. You should also

tax year, and you are claiming a credit for taxes paid to another state,

keep a copy in your tax records.

see “What does Column B Represent” below.

What if I am a Grantor Trust or Disregarded

What does Column B represent?

Entity?

Column B represents the portion of Column A that is allocated or

If you are a grantor trust or other disregarded entity for federal and

apportioned to Illinois. If you were not a resident of Illinois on the last

Illinois income tax purposes, check the applicable box on Line 8b,

day of the trust’s or estate’s tax year, be sure the amounts reported in

write the name and identification number of the taxpayer that will

Column B are included in the Illinois amounts reported on your

report the income or loss from your Schedule K-1-T on their tax

• Form IL-1040, Schedule NR, Nonresident and Part-Year Resident

return, and provide them with a copy of the Schedule K-1-T and a

Computation of Illinois Tax, Column B;

copy of this Schedule K-1-T(2).

• Form IL-1041, Schedule NR, Nonresident Computation of Fiduciary

What if I received Schedule K-1-T from a Grantor

Income, Column B;

• Form IL-1120, Step 4, Figure your income allocable to Illinois; or

Trust or Disregarded Entity?

• Form IL-1065 or Form IL-1120-ST, Step 6, Figure your income

If the grantor trust or disregarded entity checkbox on Line 8b is

allocable to Illinois.

checked and your name and identification number are listed, report

the items from the Schedule K-1-P as if it were provided to you by the

If you were a resident of Illinois on the last day of the trust’s or estate’s

taxpayer in Step 1.

tax year, and you are claiming a credit for taxes paid to another state,

subtract the amount of each item in Column B from the amount of that

What if I believe the trust or estate has made an

item in Column A, and include the difference in Column B, Non-Illinois

error on my Schedule K-1-T?

Portion, for that item on your

If you believe the trust or estate has made an error on your

• Form IL-1040, Schedule CR, Credit for Tax Paid to Other States, or

Schedule K-1-T, notify the trust or estate and ask for a corrected

• Form IL-1041, Schedule CR, Credit for Tax Paid to Other States.

Schedule K-1-T. Do not change any items on your copy.

Step-by-Step Instructions

for individuals filing Form IL-1040

Steps 3 and 4 - Your share of nonbusiness and

Nonresidents: Include the amount from Step 4, Column B, Line 19, on

your Form IL-1040, Schedule NR, Step 3, Column B, Line 6.

business income —

Residents claiming credit for taxes paid in other states: Subtract

Column A - Beneficiary’s share —

the amount on Step 4, Column B, Line 19, from the amount on Step

Lines 9 through 29 -

Make sure the amounts reported on these lines

4, Column A, Line 19, and include the result on your Form IL-1040,

match your federal Schedule K-1.

Schedule CR, Step 2, Column B, Line 2.

Column B - Illinois share —

Nonbusiness dividends are not taxed by Illinois.

Dividend income -

Step 3, Column B, Line 10, should be “0.”

Step 3 represents your share of the trust’s or estate’s nonbusiness

income allocated to Illinois. Step 4 represents your share of the trust’s or

Nonresidents: Include the amount from Step 4, Column B, Line 20 on

estate’s business income apportioned to Illinois. The following information

your Form IL-1040, Schedule NR, Step 3, Column B, Line 7.

allows you to determine the amount to include on specific lines of your

Residents claiming credit for taxes paid in other states: Subtract

Form IL-1040.

the amount on Step 4, Column B, Line 20, from the amount on Step

Use the following instructions in order to include the income

4, Column A, Line 20, and include the result on your Form IL-1040,

reported in Steps 3 and 4 of Schedule K-1-T, on your Form IL-1040,

Schedule CR, Step 2, Column B, Line 3.

Schedule NR, Step 3, Lines 5 through 19, and Form IL-1040, Schedule

CR, Step 2, Column B, Lines 1 through 15.

Nonbusiness interest is not taxed by Illinois. Step 3,

Interest income -

Column B, Line 9, should be “0.”

Schedule K-1-T(2) (R-12/12)

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Schedule K-1-T(2) - Beneficiary'S Instructions

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