Schedule K-1-P: Partner's or Shareholder's Share of Income, Deductions, Credits, and Recapture (Revision)
Illinois · Illinois DOR · Used for tax years 2025
Illinois Schedule K-1-P reports a partner’s or shareholder’s share of income, deductions, Illinois additions and subtractions, credits, recapture, and withholding. It is completed by partnerships filing Form IL-1065 and S corporations filing Form IL-1120-ST.
Who files this form
Partnerships filing Form IL-1065 and S corporations filing Form IL-1120-ST complete Schedule K-1-P to report a partner’s or shareholder’s share of income, deductions, credits, and recapture.
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, and Illinois additions and subtractions.
- Federal Schedule K-1: The member’s share of business income or loss, less nonbusiness income.
- Illinois Schedule M for businesses: Other additions and subtractions.
- Illinois Schedule F: Illinois appreciation amounts for Step 6.
- The Illinois tax return: The member’s share of Illinois income tax credits.
You will 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 additions and subtractions reported in Step 5.
How to file
Partners and shareholders receiving Schedule K-1-P should attach it to their Illinois tax return.
The supplied form does not give a mailing address or e-file instructions.
Common mistakes
- Using Step 5 amounts without reading the recipient instructions. The form says recipients must read Schedule K-1-P(2) to correctly report amounts in Columns A and B.
- Having someone other than the named recipient complete Line 9b. This line is for the recipient listed on Line 5 only.
- Leaving out required information. The form warns that failure to provide the required information could result in a penalty.
- Not attaching the schedule to the recipient’s return. The form tells partners and shareholders to attach Schedule K-1-P to their Illinois tax return.
Questions people ask
What apportionment factor goes on Line 4?
Enter the apportionment factor from Form IL-1065 or Form IL-1120-ST, Line 42. Otherwise, enter “1.”
What is Line 9b for?
Only the recipient named on Line 5 completes Line 9b. It lets the recipient identify itself as a grantor trust or disregarded entity and provide the name and SSN or FEIN of whoever will report the schedule’s amounts.
Where is the pass-through entity tax credit reported?
The Pass-through Entity (PTE) Tax Credit is reported on Line 53a. The form directs filers to see the instructions for that line.
Does Step 6 apply to corporate partners or shareholders?
No. Step 6 covers Illinois August 1, 1969, appreciation amounts and expressly excludes corporate partners and shareholders.
Where are payments made directly to retired partners reported?
Step 8, Line 58 reports retirement payments made directly to retired partners. Column A is the partner’s share, and Column B is the partner’s share allocated to Illinois.