Schedule K-1-T(3): Pass-through Withholding Calculation for Nonresident Members (2025)
Illinois · Illinois DOR · Used for tax years 2025
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 Illinois income subject to withholding and total pass-through withholding. Keep the schedule with you
Who files this form
Trusts or estates filing Form IL-1041 must complete 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 one who has submitted Form IL-1000-E.
The 2025 schedule applies to tax years ending on or after December 31, 2025, and before December 31, 2026.
What you'll need
Have these forms and details available to complete the schedule:
- Your Form IL-1041 name and federal employer identification number (FEIN).
- The nonresident beneficiary’s name, Social Security number or FEIN, and organization type.
- The beneficiary’s Schedule K-1-T, including the Column B income, addition, and subtraction amounts referenced on Lines 6, 7, 9, and 11.
- Any Form IL-1000-E the beneficiary submitted to you, to determine whether this schedule is needed.
The schedule directs you to consult instructions for certain calculations, including pass-through withholding on Line 13. Those instructions are not included in the supplied text.
How to file
Keep a copy of Schedule K-1-T(3) for each beneficiary 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.
Report the total pass-through withholding from Line 13 in both places:
- The beneficiary’s Schedule K-1-T, Step 7, Line 49.
- Your Form IL-1041, Schedule D, Section B, Line G, on the line reporting that beneficiary’s amounts.
Common mistakes
- Completing the schedule for a resident beneficiary or a beneficiary who submitted Form IL-1000-E. The form says not to do this.
- Sending the schedule to beneficiaries or submitting it to the department without a specific request. Keep it with your income tax records instead.
- Entering a negative amount on Line 12. If Line 10 minus Line 11 is negative, enter zero.
- Skipping the instruction references. The form directs you to read instructions before completing Lines 6 and 7 and to consult them for Lines 12 and 13. Line 11 also directs you to instructions for certain beneficiaries who received Illinois August 1, 1969, appreciation amounts.
- Failing to provide the information when requested. The form warns that failure to provide required information could result in a penalty.
Questions people ask
Do I need a separate schedule for each nonresident beneficiary?
Yes. Complete one for each nonresident beneficiary who has not submitted Form IL-1000-E to you.
Which beneficiary organization types are listed?
The form lists individual, corporation, trust, partnership, S corporation, and estate. Check the appropriate box in Step 2.
What if the amount on Line 12 is negative?
Enter zero if subtracting Line 11 from Line 10 gives a negative result.
Should I give this schedule to the beneficiary?
No. Keep it with your income tax records. Report the Line 13 withholding amount on the beneficiary’s Schedule K-1-T, Step 7, Line 49, and on your Form IL-1041, Schedule D, Section B, Line G.