Schedule K-1-T(2) Draft - Beneficiary'S Instructions printable pdf download

Illinois Department of Revenue

Schedule K-1-T(2) Beneﬁ ciary’s Instructions

General Information

For individuals ﬁ ling Form IL-1040, Schedule NR —

Use the following instructions in order to include the

What is the purpose of Schedule K-1-T?

income reported in Steps 3 and 4 of Schedule K-1-T, on your

The trust or estate listed on the front of Schedule K-1-T has com-

Form IL-1040, Schedule NR, Step 3, Lines 5 through 19.

pleted and provided you with the schedule that reﬂ ects your share of

Interest income -

Nonbusiness interest is not taxed by Illinois.

the trust’s or estate’s income and modiﬁ cations. Use this completed

Step 3, Column B, Line 9, should be “0.” Include the amount from

schedule and these instructions to help you report the items shown

Step 4, Column B, Line 19, on your Schedule NR, Step 3, Column B,

on Schedule K-1-T on your Illinois Income Tax return. You must

Line 6.

attach a copy of Schedule K-1-T to the tax return you are ﬁ ling.

Dividend income -

Nonbusiness dividends are not taxed by

You should also keep a copy in your tax records.

Illinois. Step 3, Column B, Line 10, should be “0.” Include the amount

What if I believe the trust or estate has made an

from Step 4, Column B, Line 20 on your Schedule NR, Step 3,

error on my Schedule K-1-T?

Column B, Line 7.

Rents, royalties, partnerships, S corporations, trusts, and

If you believe the trust or estate has made an error on your

estates -

Add Step 3, Column B,

Schedule K-1-T, notify the trust or estate and ask for a corrected

Line 11

______________

Schedule K-1-T. Do not change any items on your copy.

Line 12

______________

What does Column A represent?

Line 13

______________

Line 14

______________

Column A represents your speciﬁ c share of the trust’s or the estate’s

and

income and modiﬁ cations. The trust or estate is required to complete

Step 4, Column B,

this column if any part of the trust’s or estate’s income was paid,

Line 25

______________

credited, or distributed, or deemed to have been paid, credited, or

Line 28

______________

distributed by the trust or estate to you. If you were a resident of

Total

______________

Illinois on the last day of the trust’s or estate’s taxable year, only

Column A should have been completed and all amounts in Column

Include this total amount on your Schedule NR, Step 4, Column B,

A must be included as income and modiﬁ cations allocated to Illinois.

Line 15.

If you were not a resident of Illinois on the last day of the trust’s or

Capital gain or loss -

Add Step 3, Column B, Lines 15, 16, and

estate’s taxable year, Column B will also be completed. See “What

17, and Step 4, Column B, Lines 21 and 22. Include this total amount

does Column B represent?”

on your Schedule NR, Step 3, Column B, Line 11.

Other income -

The trust or estate is required to identify or send

What does Column B represent?

you a breakdown of the items reported on Step 3, Line 18, and

Column B represents the portion of Column A that is allocated or

Step 4, Line 29. This identiﬁ cation or breakdown will determine on

apportioned to Illinois. The trust or estate is required to complete

what lines of your federal return you need to report the income in

this column if you were not a resident of Illinois on the last day of

Column A. The amounts reported in Column B need to be reported

the trust’s or estate’s tax year. Make sure the amounts reported in

on the corresponding lines of your Schedule NR, Column B.

Column B are included in the amounts reported on your

For trusts or estates ﬁ ling Form IL-1041, Schedule NR —

• Form IL-1040, Schedule NR, Nonresident and Part-Year Resident

Computation of Illinois Tax, Column B;

Interest income -

Nonbusiness interest is not taxed by Illinois.

• Form IL-1041, Schedule NR, Nonresident Computation of

Step 3, Column B, Line 9, should be “0.” Include the amount

Fiduciary Income, Column B;

of business interest from Step 4, Column B, Line 19,

that was

• Form IL-1120, Step 4, Figure your income allocable to Illinois; or

not distributed or deemed distributed to a beneﬁ ciary

on your

• Form IL-1065 or Form IL-1120-ST, Step 6, Figure your income

Schedule NR,

Step

3, Column C, Line 1.

allocable to Illinois.

Dividend income -

Nonbusiness dividends are not taxed by Illinois.

Step 3, Line 10, Column B, should be “0.” Include the amount of

Step-by-Step Instructions

business dividends from Step 4, Column B, Line 20,

that was not

These instructions are intended to help you report your share of the

distributed or deemed distributed to a beneﬁ ciary

on your Schedule

trust’s or estate’s income and modiﬁ cations on your Illinois income

NR, Step 3, Column C, Line 2.

tax return.

Income or loss from trusts and estates -

Steps 3 and 4 - Your share of nonbusiness and

Add Step 3, Column B,

business income —

Line 11

______________

Line 12

______________

Column A - Beneﬁ ciary’s share —

Line 13

______________

Lines 9 through 29 -

Make sure the amounts reported on these

Line 14

______________

lines match your federal Schedule K-1.

and Step 4, Column B,

Line 25

______________

Column B - Nonresident beneﬁ ciary’s share —

Line 28

______________

Step 3 represents your share of the trust’s or estate’s nonbusiness

Total

______________

income allocated to Illinois. Step 4 represents your share of the trust’s

Include this total amount, to the extent it was not distributed or

or estate’s business income apportioned to Illinois. To determine the

deemed distributed to a beneﬁ ciary on your Schedule NR, Step 3,

amount to include on speciﬁ c lines of your Form IL-1065, IL-1120,

Column C, Line 7.

IL-1120-ST, or Form IL-1040 or IL-1041, Schedule NR, follow the

instructions below.

Schedule K-1-T(2) (R-12/10)

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Schedule K-1-T(2) Draft - Beneficiary'S Instructions

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