Illinois Schedule B, 1120-ST and IL-1065 E-file Block
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When attempting to mark the Illinois S corporation return (Form IL-1120-ST) or partnership return (From IL-1065) for electronic filing, you may be blocked from e-filing with this message:
Missing share of Illinois Income subject to withholding or exclusion
from pass-through payments for shareholder(s).
S corporation (Form IL-1120-ST)
To remove this block from the Illinois S corp return (Form IL-1120-ST), from the main menu of the return select:
- Shareholders Information - Select the shareholder to edit.
- Heading Information - Verify a few things here:
- Partner or Shareholder Considered a Nonresident of IL - Answer Yes or No as appropriate.
- Type of Partner or Shareholder - Ensure this is "Individual".
- Excluded from pass-through entity payments - If none of the reasons apply, select None.
- Share of IL income subject to pass-through withholding - If this amount is $0, you need to allocate this partner's income to Illinois.
To allocate income to Illinois for each shareholder, from each shareholder's Schedule K-1-P Edit Menu select each of these menu lines and allocate to Illinois as needed any amount showing in the "Member Share" column:
- Nonbusiness Income (Loss)
- Business Income (Loss)
- Additions (Subtractions)
- Appreciation
Repeat the above steps for each shareholder.
Partnership (Form IL-1065)
To remove this e-file block from the Illinois partnership return (Form IL-1065), from the main menu of the return select:
- Partners Information
- Schedule K-1-P - Select the partner to edit.
- Heading Information - Verify a few things here:
- Partner or Shareholder Considered a Nonresident of IL - Answer Yes or No as appropriate.
- Type of Partner or Shareholder - Ensure this is "Individual".
- Excluded from pass-through entity payments - If none of the reasons apply, select None.
- Share of IL income subject to pass-through withholding - If this amount is $0, you need to allocate this partner's income to Illinois.
To allocate income to Illinois for each partner, from each partner's Schedule K-1-P Edit Menu select each of these menu lines and allocate to Illinois as needed any amount showing in the "Member Share" column:
- Nonbusiness Income (Loss)
- Business Income (Loss)
- Additions (Subtractions)
- Appreciation
Repeat the above steps for each partner.
Additional Information: