Schedule K-1-P: Partner's or Shareholder's Share of Income, Deductions, Credits, and Recapture (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule K-1-P reports a partner’s or shareholder’s share of income, deductions, Illinois additions and subtractions, credits, recapture, and withholding. Partnerships filing Form IL-1065 and S corporations filing Form IL-1120-ST complete this schedule for their partners
Who files this form
Partnerships filing Form IL-1065 and S corporations filing Form IL-1120-ST complete Schedule K-1-P.
Partners and shareholders who receive Schedule K-1-P should attach it to their Illinois tax return.
What you'll need
The schedule uses information from these forms, as applicable:
- Form IL-1065 or Form IL-1120-ST: the business name, apportionment factor from Line 42, and amounts for Illinois additions and subtractions.
- Federal Schedule K-1: the member’s share of income or loss used in Step 4, less nonbusiness income.
- Illinois Schedule M for businesses: other additions and subtractions.
- Illinois Schedule F: Illinois August 1, 1969, appreciation amounts.
- The Illinois tax return: the member’s share of Illinois income tax credits.
You also need the business’s FEIN and the partner’s or shareholder’s name, mailing address, Social Security number or FEIN, ownership share percentage, and entity type.
Recipients must read Schedule K-1-P(2) before using the amounts in Step 5.
How to file
The partnership or S corporation completes Schedule K-1-P. The partner or shareholder receiving it should attach it to their Illinois tax return.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Using Step 5 without reading the recipient instructions. Before reporting the amounts in Columns A and B, recipients must read Schedule K-1-P(2).
- Having someone other than the named recipient complete Line 9b. The form says this line is to be completed only by the recipient named on Line 5.
- Leaving out required information. The form warns that disclosure is required and failure to provide the information could result in a penalty.
Questions people ask
What does Schedule K-1-P report?
It reports a partner’s or shareholder’s share of income, deductions, credits, and recapture. It also includes withholding and the pass-through entity tax credit.
What apportionment factor goes on Line 4?
Enter the factor from Line 42 of Form IL-1065 or Form IL-1120-ST. Otherwise, enter “1.”
What is Line 9b for?
The recipient named on Line 5 uses Line 9b to identify themselves as a grantor trust or disregarded entity and provide the name and SSN or FEIN of the person or entity that will report the amounts.
Does Step 6 apply to corporate partners or shareholders?
No. Step 6 covers Illinois August 1, 1969, appreciation amounts for partners and shareholders other than corporate partners or shareholders.