Schedule K-1-T: Beneficiary's Share of Income and Deductions (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule K-1-T is completed by trusts or estates filing Form IL-1041 to report a beneficiary’s share of income, losses, deductions, and Illinois additions and subtractions. It also reports pass-through withholding, pass-through entity tax credits, and federal income subj
Who files this form
Trusts or estates filing Form IL-1041 complete Schedule K-1-T to report a beneficiary’s share of income and deductions.
Beneficiaries who receive Schedule K-1-T should attach it to their Illinois tax return.
What you'll need
The schedule calls for information from these forms, as applicable:
- Form IL-1041: the trust or estate’s name and the beneficiary’s share of Illinois additions and subtractions.
- Federal Schedule K-1: income amounts used in Step 4, less nonbusiness income.
- Schedule NR (Form IL-1041): the apportionment factor from Step 6, Line 3. Otherwise, enter “1.”
- Illinois Schedule M (for businesses): other additions and subtractions.
- Illinois Schedule F (Form IL-1041): appreciation amounts reported in Step 6.
You also need the trust or estate’s federal employer identification number (FEIN), plus the beneficiary’s name, mailing address, and Social Security number or FEIN.
Beneficiaries must read Schedule K-1-T(2) before using the amounts in Step 5.
How to file
The trust or estate completes Schedule K-1-T. A beneficiary receiving the schedule should attach it to their Illinois tax return.
The form does not provide a mailing address or instructions for filing electronically.
Common mistakes
- Leaving the schedule off the beneficiary’s return: the form says beneficiaries should attach it to their Illinois tax return.
- Using Step 5 without reading the recipient instructions: recipients must read Schedule K-1-T(2) to correctly report the amounts in Columns A and B.
- Completing Line 49 without checking the instructions: the form specifically says to see the instructions before completing this line for pass-through withholding.
- Omitting required information: the form warns that failure to provide required information could result in a penalty.
Questions people ask
Who completes Schedule K-1-T?
A trust or estate filing Form IL-1041 completes the schedule. The beneficiary receiving it should attach it to their Illinois tax return.
What apportionment factor goes on Line 4?
Enter the factor from Step 6, Line 3, of Schedule NR (Form IL-1041). Otherwise, enter “1.”
Who completes Line 8b?
Only the recipient named on Line 5 completes Line 8b. It provides boxes for a grantor trust or disregarded entity and asks for the name and SSN or FEIN of whoever will report the amounts.
Does Step 6 apply to corporate beneficiaries?
No. Step 6 covers a beneficiary’s share of Illinois August 1, 1969, appreciation amounts, except for corporate beneficiaries.
Where are pass-through withholding and the PTE tax credit reported?
Line 49 reports pass-through withholding made on behalf of a nonresident beneficiary. Line 50 reports the pass-through entity (PTE) tax credit received. Both lines direct the preparer to the instructions.