Schedule K-1-T(3): Pass-through Withholding Calculation for Nonresident Members (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule K-1-T(3) is used by trusts and estates filing Form IL-1041 to calculate pass-through withholding for nonresident beneficiaries. It calculates each beneficiary’s share of Illinois income subject to withholding and total pass-through withholding.
Who files this form
Trusts or estates filing Form IL-1041 must complete a separate Schedule K-1-T(3) for each nonresident beneficiary who has not submitted Form IL-1000-E to them.
Do not complete this schedule for a resident beneficiary or a beneficiary who has submitted Form IL-1000-E.
The 2024 schedule applies to tax years ending on or after December 31, 2024, and before December 31, 2025.
What you'll need
Have the following available:
- Your Form IL-1041, including the name shown on it and your federal employer identification number (FEIN).
- The beneficiary’s name, Social Security number or FEIN, and organization type.
- The beneficiary’s Schedule K-1-T. The calculation uses amounts from Column B for income, additions, and subtractions.
- Any Form IL-1000-E the beneficiary submitted to you, to determine whether this schedule should be completed.
You will also need the beneficiary’s Schedule K-1-T and your Form IL-1041, Schedule D, to report the resulting withholding amount.
How to file
Keep Schedule K-1-T(3) with your income tax records. Do not send it to your beneficiaries or submit it to the Illinois Department of Revenue unless the department specifically requests it.
To complete the schedule:
- Enter the trust or estate’s identifying information and the nonresident beneficiary’s information.
- Use the beneficiary’s Schedule K-1-T amounts to complete Lines 6 through 12. The form directs you to consult the instructions for certain calculations, including the withholding calculation on Line 13.
- Report the Line 13 withholding amount on the beneficiary’s Schedule K-1-T, Step 7, Line 49.
- Also report that amount on Form IL-1041, Schedule D, Section B, Line G, on the line for that beneficiary.
Common mistakes
- Completing the schedule for a resident beneficiary or someone who submitted Form IL-1000-E. The form says not to complete it for either group.
- Entering a negative amount on Line 12. If Line 10 minus Line 11 is negative, enter zero.
- Forgetting to report Line 13 in both required places: the beneficiary’s Schedule K-1-T, Step 7, Line 49, and your Form IL-1041, Schedule D, Section B, Line G.
- Sending this schedule to beneficiaries or submitting it to the Illinois Department of Revenue without a specific request. Keep a copy for each beneficiary with your tax records instead.
- Failing to provide the information when requested. The form warns that failure to provide required information could result in a penalty.
Questions people ask
What is Schedule K-1-T(3) used for?
Trusts and estates filing Form IL-1041 use it to calculate pass-through withholding for nonresident beneficiaries who have not submitted Form IL-1000-E.
Which beneficiary organization types are listed?
The form has boxes for individual, corporation, trust, partnership, S corporation, and estate.
Where do I report the withholding amount?
Report Line 13 on the beneficiary’s Schedule K-1-T, Step 7, Line 49. Also report it on your Form IL-1041, Schedule D, Section B, Line G, on the line for that beneficiary.
Should I give the beneficiary a copy of this schedule?
No. The form says not to send Schedule K-1-T(3) to beneficiaries. Keep it with your income tax records and provide it to the Illinois Department of Revenue only if specifically requested.