Report Illinois Schedule K-1-P(2) income on nonresident return

Forum|Forum|6 years ago
March 21, 2020
1 reply
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I have an individual who received a Schedule K-1-P(2) from an S Corp. I've entered the details from the schedule on the S-Corp Info "State & Local" tab but it doesn't show up on the Illinois nonresident return. Am I missing a step or should I manually allocate the line items from the federal K-1 between Illinois and the other states included in this K-1?

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Best answer by itonewbie

Those are entries that would be transmitted as part of the electronic filing but are not numbers that would be used to prepare and compute IL-1040.

For IL-1040 to compute correctly, you need to enter the sourcing details as mentioned in my last post.

You can also checkout these articles for detailed instructions:

https://proconnect.intuit.com/community/help-articles/help/how-to-create-a-multi-state-return/00/4715

https://proconnect.intuit.com/taxprocenter/practice-management/handling-multi-state-returns-in-proconnect-tax-online/

itonewbie

Level 15

What type of return are you preparing? Generally, state sourcing is entered on the same screens as federal amounts (with lines coded with S for specific states), rather than under State & Local.

---------------------------------------------------------------------------------Still an AllStar

M

mikejuby369Author

Level 3

I'm preparing an individual return. Can you explain the purpose of the PTO input at the following?
Go to Input Return > Income > Passthrough K-1's > S-Corp Info
Go to State & Local tab
Scroll down to Illinois Shareholder Share of Business Income (Loss) (EF only) {IL}

The input boxes correspond exactly with the same info on the Illinois state K-1. It looks like this should give PTO the information needed to allocate the income to Illinois, but I can't see where the input has any impact on the 1041. I can force the numbers I want but would like to know if this input is useful or necessary.

itonewbieAnswer