Schedule K-1-T(3) Pass-Through Withholding Calculation for Nonresident Members - Illinois

What Is Schedule K-1-T(3)?

This is a legal form that was released by the Illinois Department of Revenue - a government authority operating within Illinois. As of today, no separate filing guidelines for the form are provided by the issuing department.

FAQ

Q: What is Schedule K-1-T(3)?
A: Schedule K-1-T(3) is a form used by nonresident members of a pass-through entity in Illinois to calculate their withholding tax.

Q: Who needs to use Schedule K-1-T(3)?
A: Nonresident members of a pass-through entity in Illinois need to use Schedule K-1-T(3) to calculate their withholding tax.

Q: What is pass-through withholding?
A: Pass-through withholding is the process of withholding tax on income distributed by a pass-through entity to its nonresident members.

Q: What is a pass-through entity?
A: A pass-through entity is a business structure, such as a partnership or S corporation, where the income and tax liabilities are passed through to the owners or members.

Q: What is a nonresident member?
A: A nonresident member is an individual or entity that is not a resident of Illinois, but is a member of a pass-through entity that operates in Illinois.

Q: How is the pass-through withholding tax calculated?
A: The pass-through withholding tax is calculated by multiplying the nonresident member's distributive share of Illinois income by the withholding rate specified by the Illinois Department of Revenue.

Q: When is Schedule K-1-T(3) due?
A: Schedule K-1-T(3) is typically due on the same date as the pass-through entity's annual tax return, which is usually April 15th.