RI-1040C-NE: Nonresident Election to be Included in a Composite Filing (2024)

Who files this form

Form RI-1040C-NE documents a qualified nonresident individual's election to be included in a pass-through entity's Rhode Island composite return, Form RI-1040C.

Eligible individuals include:

• Partners in partnerships.
• Shareholders in S corporations.
• Members of LLCs treated as partnerships for federal income tax purposes.
• Beneficiaries of trusts or estates.

The entity must do business in Rhode Island or have income, gain, loss, or deductions connected with Rhode Island sources. For a trust or estate, eligibility is based on those Rhode Island sources. All qualified electing nonresident members must have the same taxable year.

By signing, you declare that you were a nonresident for the entire taxable year and did not maintain a permanent place of abode in Rhode Island at any time during that year. You also declare that neither you nor your spouse, if filing a joint federal return, had Rhode Island-source income other than your share of pass-through entity income.

When it's due

For tax year 2024, the form gives these timing rules:

• Submit your completed RI-1040C-NE to the pass-through entity before it files Form RI-1040C.
• Form RI-1040C is due on the fifteenth day of the third month following the close of the qualified electing nonresident members' taxable year.
• You may not elect to join a composite return after the fifteenth day of the fourth month following the close of the entity's taxable year.

The form does not print a specific calendar deadline for 2024.

What you'll need

Have the information needed to complete the form:

• Your name, address, and Social Security number.
• Your spouse's Social Security number and signature, for the spouse fields shown on the form.
• The pass-through entity's name, address, federal employer identification number, and year-end information.
• The Internal Revenue Service Center where your federal return is filed.
• Your signature and date, plus the date for the spouse's signature field.

How to file

Complete Form RI-1040C-NE, review the declaration, and sign and date the form. It also includes spouse signature and date fields.

Submit the completed form to the pass-through entity before the entity files Form RI-1040C. The entity must keep your election in its permanent records and make it available to the Rhode Island Division of Taxation upon request.

The text does not specify a mailing address or an e-file method for this election.

Common mistakes

• Assuming the composite return covers all filing obligations. The form's note says it meets the separate filing requirements resulting exclusively from the income covered by the composite return.
• Assuming an individual return can never be required. Qualified electing members included on Form RI-1040C are not required to file Form RI-1040NR, but the Division of Taxation retains the right to require an individual Rhode Island income tax return.

Questions people ask

Does this election continue in later years?

Yes. An election filed on or after the first day of the taxable year is effective for that year and all following taxable years unless revoked.

How do I revoke the election?

Provide written notice to the pass-through entity. The revocation takes effect in the taxable year after the date you provide the notice. The entity must keep the notice in its permanent records and make it available to the Division of Taxation upon request.

What tax benefits or payment rights do I give up?

The declaration waives your right to claim a Rhode Island standard or itemized deduction, any personal exemption, and any percentage of allowable federal credits. It also waives your right to request an extension of time to pay Rhode Island income tax.

Who acts for me in filing the composite return?

You authorize the pass-through entity to designate a member to act as your agent, and as agent for the other qualified electing nonresident members, in filing the composite return.

Official sources

• https://tax.ri.gov/forms