Schedule K-1-P(3): Pass-through Withholding Calculation for Nonresident Members (2024)

Who files this form

Partnerships filing Form IL-1065 and S corporations filing Form IL-1120-ST must complete Schedule K-1-P(3) for each nonresident partner or shareholder who has not submitted Form IL-1000-E to them.

Do not complete this schedule:

• For a resident member.
• For a member who has submitted Form IL-1000-E to you.
• If you have elected to pay Pass-through Entity Tax.

Keep the schedule with your income tax records. Submit it to the Illinois Department of Revenue only if specifically requested.

What you'll need

Have the following information available:

• Your business name as shown on Form IL-1065 or Form IL-1120-ST, and your federal employer identification number (FEIN).
• The nonresident member’s name, Social Security number or FEIN, and organization type.
• The member’s Schedule K-1-P, including the Column B income, addition, and subtraction amounts used in Lines 6 through 11.
• The amounts of Illinois replacement tax investment credits and Illinois income tax credits passed to the member and available for use this year.

Check whether the member has submitted Form IL-1000-E to you. If so, do not complete this schedule for that member.

How to file

Keep a copy of Schedule K-1-P(3) for each member with your income tax records. Do not send it to your members or submit it to the Illinois Department of Revenue unless the department specifically requests it.

Report the total pass-through withholding from Line 19 in both places:

• The member’s Schedule K-1-P, Step 7, Line 55.
• Your Form IL-1065 or Form IL-1120-ST, Schedule B, Section B, Line J, on the line for that member.

Common mistakes

• Do not complete this schedule for resident members or members who have submitted Form IL-1000-E to you.
• Do not complete it if you elected to pay Pass-through Entity Tax.
• For a nonresident individual or estate, enter zero on Lines 13 through 15 and go to Line 16.
• For a nonresident partnership or S corporation, enter zero on Lines 16 through 18 and go to Line 19.
• If the result on Line 12, 15, or 18 is negative, enter zero.
• Do not send this schedule to members or submit it to the Illinois Department of Revenue unless specifically requested.
• Remember to report Line 19 on both the member’s Schedule K-1-P and your return’s Schedule B.

Questions people ask

Which tax years does the 2024 schedule cover?

The 2024 schedule applies to tax years ending on or after December 31, 2024, and before December 31, 2025.

Do I need a separate schedule for each nonresident member?

Yes. Complete a schedule for each nonresident partner or shareholder who has not submitted Form IL-1000-E to you, unless you elected to pay Pass-through Entity Tax.

Should I give this schedule to the member?

No. Keep it with your income tax records. Report the member’s total pass-through withholding on their Schedule K-1-P, Step 7, Line 55.

Where do I find the total pass-through withholding?

Line 19 is the total. Calculate it by adding Line 15, replacement tax after credits, and Line 18, income tax after credits.

Official sources

• https://taxarchive.illinois.gov/content/dam/soi/en/web/taxarchive/forms/income-tax/2024/business/miscellaneous/schedule-k-1-p-3.pdf