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

Illinois Department of Revenue

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

General Information

What if I believe the trust or estate has made an

error on my Schedule K-1-T?

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

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

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

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

and provided you with the schedule to reflect your share of the trust’s

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

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

these instructions to help you report the items shown on Schedule K-1-T

What does Column A represent?

on your Illinois Income Tax return. Attach a copy of Schedule K-1-T to

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

the tax return. You should also keep a copy in your tax records.

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

What must I attach?

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

You must attach a copy of any Schedule K-1-T you receive from a

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

trust or estate to your tax return. You should also keep a copy for your

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

records.

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

If you receive a Schedule K-1-T that has “the following

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

information is included in the Schedule K-1-T from _______” (the

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

name of the trust or estate) written at the top, it is a pro forma

see “What does Column B Represent” below.

Schedule K-1-T. The pro forma Schedule K-1-T has been included to

What does Column B represent?

aid you in the completion of your return and should not be submitted

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

with your tax return.

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

What if I am a Grantor Trust or Disregarded

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

Entity?

Column B are included in the Illinois amounts reported on your

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

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

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

Computation of Illinois Tax, Column B;

enter the name and identification number of the taxpayer that will

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

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

Income, Column B;

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

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

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

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

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

allocable to Illinois; or

Trust or Disregarded Entity?

• Form IL-990-T, Step 3, Figure your income allocable to Illinois.

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

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

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

checked and your name and identification number are listed, report

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

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

Column A, and include the difference in the Non-Illinois Portion column for

taxpayer in Step 1.

that item on your

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

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

Step-by-Step Instructions

for individuals filing Form IL-1040

Steps 3 and 4 - Your share of nonbusiness and

Use the following instructions in order to include the income

business income or loss —

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

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

Follow the Steps 3 and 4 instructions to determine the amounts

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

to include on your Form IL-1040, Schedule NR or Schedule CR.

Nonbusiness interest is not taxed by Illinois. Step

Interest income -

Column A - Beneficiary’s share —

3, Column B, Line 9, should be “0.” If the Schedule K-1-T you received

Make sure the amounts reported on these lines

Lines 9 through 29 -

shows an amount in Column B of this line, you should notify the

match your federal Schedule K-1.

partnership or S corporation who issued you the schedule and ask for a

corrected Schedule K-1-T.

Column B - Illinois share —

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

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

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

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

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

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

Form IL-1040.

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Schedule K-1-T(2) (R-12/14)

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

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