If you received an Illinois Schedule K-1-P from a partnership or S corporation, you may need to enter information from that schedule on your Illinois return. Schedule K-1-P reports your share of income, deductions, credits, recapture amounts, and Illinois tax payments made on your behalf by the entity. Illinois uses this information to calculate various items on your individual tax return.
What Is Schedule K-1-P?
Schedule K-1-P, Partner's or Shareholder's Share of Income, Deductions, Credits, and Recapture, is issued by:
- Partnerships
- S Corporations
The schedule reports items that pass through from the entity to its owners, partners, or shareholders. These items may include:
- Income
- Deductions
- Credits
- Illinois additions and subtractions
- Pass-through withholding
- Pass-through entity (PTE) tax credits
- Recapture amounts
If you received a Schedule K-1-P, you should receive it directly from the partnership or S corporation.
Who Needs to Complete Schedule K-1-P?
You may need to complete this section if:
- You were a partner in a partnership.
- You were a shareholder of an S corporation.
- You received an Illinois Schedule K-1-P.
- The schedule reports Illinois withholding, credits, income, deductions, or other items that affect your return.
If you did not receive a Schedule K-1-P, you can usually skip this section.
What Information Do I Need?
Before starting, gather:
- Your Illinois Schedule K-1-P
- Partnership or S corporation name
- Federal Employer Identification Number (FEIN)
- Tax year ending date (if not a calendar year)
- Apportionment factor, if provided
- Income, deductions, credits, and withholding amounts shown on the schedule
Having a copy of the federal Schedule K-1 may also be helpful when reviewing your return.
How Do I Enter Schedule K-1-P Information?
Step 1: Open the Schedule K-1-P Section
Navigate to the Schedule K-1-P interview within your Illinois return.
Step 2: Enter Partnership or S Corporation Information
Complete the entity information exactly as it appears on Schedule K-1-P, including:
- Tax year ending date (if not a calendar year)
- Company name
- Federal Employer Identification Number (FEIN)
- Whether the entity is a partnership or S corporation
- Apportionment factor
Step 3: Enter Schedule K-1-P Amounts
Continue through the interview and enter the applicable information from Schedule K-1-P, including:
- Income items
- Deductions
- Additions
- Subtractions
- Credits
- Illinois withholding
- Pass-through entity tax credits
- Recapture information
Step 4: Review Your Return
After entering the information:
- Review the Illinois return.
- Confirm that withholding and credits transferred correctly.
- Verify any pass-through entity tax credits.
- Continue through the remaining Illinois interview screens.
Program Path
State Return > Illinois Return > Misc Forms > Schedule K-1-P - Partners or Shareholders Share of Income, Deductions, Credits, and Recapture
Use the information from your Schedule K-1-P to complete this section.
Frequently Asked Questions
What is an apportionment factor?
An apportionment factor represents the percentage of the entity's business activity attributable to Illinois. If your Schedule K-1-P includes an apportionment factor, enter it exactly as shown on the form.
What if I received more than one Schedule K-1-P?
Enter a separate Schedule K-1-P for each partnership or S corporation from which you received a schedule.
Can Schedule K-1-P affect my refund?
Yes. Schedule K-1-P may include:
- Illinois withholding paid on your behalf
- Pass-through withholding
- Credits
- Pass-through entity tax credits
These items can affect your Illinois refund or amount due. Illinois specifically allows pass-through withholding and pass-through entity tax credits reported on Schedule K-1-P to be claimed on the individual return.
Where does Illinois withholding from Schedule K-1-P get reported?
Illinois pass-through withholding reported on Schedule K-1-P may be claimed as a payment on your Illinois return. Illinois also allows pass-through entity tax credits reported on Schedule K-1-P to be claimed by eligible taxpayers.
Do I need to keep a copy of Schedule K-1-P?
Yes. Keep a copy of Schedule K-1-P with your tax records in case the Illinois Department of Revenue requests supporting documentation.
Helpful Tips
- Enter the company name and FEIN exactly as shown on Schedule K-1-P.
- Verify whether the entity is a partnership or an S corporation before completing the interview.
- Enter all withholding and credit amounts carefully.
- Review your Illinois payments and credits sections after completing the K-1-P entry.
- Keep copies of all Schedule K-1-P forms and supporting documents with your records.
Additional Information
Illinois Schedule K-1-P information can impact several areas of your return, including income, additions, subtractions, withholding, pass-through entity tax credits, and other Illinois-specific tax calculations. Reviewing the completed return after entering Schedule K-1-P information can help ensure all amounts were transferred correctly.