Edsel Posted April 8, 2019 Report Share Posted April 8, 2019 I have an S-corp domiciled in Alabama, filing its first Illinois return for 12/31/18. Illinois apparently has a "replacement tax". In addition to this, it is not clear whether the shareholders will have to pay personally on S-corp income allocated to Illinois. Will they? Is there an Illinois K-1 or equivalent? Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted April 9, 2019 Report Share Posted April 9, 2019 There will be an additional tax if the shareholder is an IL resisdent or non-resident of IL. There is K-1 equivalent only for partnership returns, however ATX does require to in put % of shareholders and the an apportionment factor. Quote Link to comment Share on other sites More sharing options...
Edsel Posted April 9, 2019 Author Report Share Posted April 9, 2019 Thanks. From your response it appears there will be an additional tax whether the owners are residents or not. What Illinois form is used to calculate that tax? Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted April 9, 2019 Report Share Posted April 9, 2019 The additional tax is on the individual level, use form IL-1040 if full-time resident, if non resident but earned income in IL, you add form NR to the IL-1040, here is more detailed information on LLCs: https://www2.illinois.gov/rev/questionsandanswers/pages/604.aspx Quote Link to comment Share on other sites More sharing options...
Edsel Posted April 9, 2019 Author Report Share Posted April 9, 2019 Thank you, Illmas. 1 Quote Link to comment Share on other sites More sharing options...
mircpa Posted April 9, 2019 Report Share Posted April 9, 2019 There should be an apportionment tab you indicate there how much sales & wages are allocated to each respective state, accordingly info flows through. For IL 1120ST it is shown under step 6 lines 40 & 41. If taxpayer is non-resident of IL it does calculate 4.95% non resident tax on IL's portion of income that shows on IL K1. Quote Link to comment Share on other sites More sharing options...
Edsel Posted April 10, 2019 Author Report Share Posted April 10, 2019 Thanks to everyone. I have one seeming problem remaining. The Illinois 1120ST forces a composite payment on the income from the 1120-S on behalf of the shareholders. But then on the personal return, the payment is calculated again. There appears no credit for the amount paid on the 1120-S. Does this make sense? Should there be a place to enter a credit? Quote Link to comment Share on other sites More sharing options...
TaxmannEA Posted April 10, 2019 Report Share Posted April 10, 2019 The credit is given to the taxpayer on the IL K-1P from the S-Corp return. They then enter it on their IL1040. Quote Link to comment Share on other sites More sharing options...
Edsel Posted April 10, 2019 Author Report Share Posted April 10, 2019 Got It. Thanks to all. Quote Link to comment Share on other sites More sharing options...
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