Illinois Department of Revenue

     Schedule K-1-P(2)  Partner’s and Shareholder’s Instructions 

What’s New for 2023?
•  Investment partnerships are required to withhold an amount on behalf of their nonresident partners. As a result, Schedule 
   K-1-P(4), Investment Partnership Withholding Calculation for Nonresident Partners, has been created to calculate 
   investment partnership withholding for each of the investment partnership’s nonresident partners. Schedule K-1-P, Step 7, 
   Line 55, is now used to report both pass-through withholding and investment partnership withholding.

General Information
What is the purpose of Schedule K-1-P?
The partnership or the S corporation listed on the front of Schedule K-1-P has completed and provided you with the schedule 
to reflect your specific share of the partnership’s or the S corporation’s income, modifications, and credits. Use the completed 
schedule and these instructions to help you report the items shown on Schedule K-1-P on your Illinois Income Tax return. 

What must I attach?
You must attach a copy of any Schedule K-1-P you receive from partnerships and S corporations to your tax return. You 
should also keep a copy for your records. 
If you receive a Schedule K-1-P that has “the following information is included in the Schedule K-1-P from _______” (the name 
of the partnership or S corporation) written at the top, it is a pro forma Schedule K-1-P. The pro forma Schedule K-1-P has been 
included to aid you in the completion of your return and should not be submitted with your tax return.

Definitions 
•  Pass-through entity - the partnership or S corporation that sent you Schedule K-1-P is a pass-through entity.
•  Pass-through entity income is the income reported on your Schedule K-1-P. 
•  Pass-through withholding is the amount paid by the pass-through entity on your behalf. This amount is listed on Line 
   55 of your Schedule K-1-P. Not everyone who receives a Schedule K-1-P will have pass-through withholding reported. If 
   you are a resident of Illinois or if you submitted Form IL-1000-E, Certificate of Exemption for Pass-through Withholding 
   Payments, to the pass-through entity, then you will not have pass-through withholding reported on your Schedule K-1-P. In 
   this case, you will be responsible for reporting and paying Illinois Income tax on the pass-through income. 
•  Pass-through Entity (PTE) tax is an amount equal to 4.95 percent (.0495) of the taxpayer’s calculated net income for the 
   taxable year paid by a partnership (other than a publicly traded partnership under Section 7704 of the Internal Revenue 
   Code) or subchapter S corporation who elects to pay the tax for taxable years ending on or after December 31, 2021, and 
   beginning prior to January 1, 2026.
•  PTE tax credit is the amount distributed to partners or shareholders by a partnership or S corporation if the election to pay 
   PTE tax was made. This amount is reported on Schedule K-1-P.
   If a PTE made the election to pay PTE tax, then it passed through to its members both 
   • the credit for PTE tax it paid and 
   • each member’s distributive share of the PTE tax credit it received from electing pass-through entities in which it is a 
     member. 
   Note: Investment partnerships may use the PTE tax credit to offset their investment partnership liability, to the extent that 
   such credit would otherwise be distributable to its nonresident partners. See the Form IL-1065 and Schedule K-1-P(4) 
   Instructions for more information.
    A nonresident individual member of a partnership or S corporation for a taxable year in which the election to pay PTE tax 
   was made shall not be required to file an income tax return under the Illinois Income Tax Act (IITA) for such taxable year if 
   the only source of net income of the individual (or the individual and the individual’s spouse in the case of a joint return) is 
   from an entity making the PTE election and the credit allowed to the member equals or exceeds the individual’s liability for 
   the tax imposed under subsections (a) and (b) of Section 201 of the IITA for the taxable year.

When is pass-through entity income earned?
Pass-through entity income is considered earned on the last day of the pass-through entity’s taxable year. Pass-through entity 
income is not considered received equally throughout the year. The pass-through entity’s tax year ending date is listed in the 
upper right corner of the Schedule K-1-P you received. 

Schedule K-1-P(2) (R-12/23)          Printed by the authority of the state of Illinois - electronic only - one copy. Page 1 of 17

What if the partnership is an investment partnership?
If the partnership that completed the Schedule K-1-P entered “investment partnership” in Step 1, Line 4, all of the income you 
receive from the partnership is usually treated as nonbusiness income that is allocable to your state of residence (individuals) 
or state of commercial domicile (all other persons or entities). However, the income you receive from the partnership will be 
treated as business income if your investment in the partnership is related to another business activity of yours or serves an 
operational function to another business activity of yours or where your contribution to the partnership was made out of working 
capital from your trade or business. 
If you are a nonresident partner and your income is treated as nonbusiness income, you are not eligible to use the investment 
partnership withholding credit reported to you on Schedule K-1-P, Step 7, Line 55, from the investment partnership.
If your income is treated as business income, you must apportion it as if you had earned the income directly, rather than 
through the partnership, and you may use the investment partnership withholding reported to you on Schedule K-1-P, Step 7, 
Line 55, to offset your liability. The apportionment should be completed on the correct forms, as follows:
• Nonresident individuals - use Form IL-1040, Schedule NR.
• Nonresident trusts and estates - use Form IL-1041, Schedule NR.
• Corporations (excluding S corporations) - use Form IL-1120 and complete Step 4, Figure your income allocable to Illinois.
• Partnerships or S corporations - use Form IL-1065 or Form IL-1120-ST and complete Step 6, Figure your income 
  allocable to Illinois.
• Exempt organizations - use Form IL-990-T and complete Step 3, Figure your income allocable to Illinois.
If you are eligible to use the investment partnership withholding to offset your liability, treat the investment partnership 
withholding credit the same way you treat the pass-through withholding credit, unless specific instructions are given. 
Illinois residents may not include any income from an investment partnership in Column B of their Schedule CR.
Note: Investment partnerships receiving income from other investment partnerships must determine if the income received 
is considered business income. If so, they must complete a pro-forma Form IL-1065 where the business income received 
from investment partnerships is apportioned as if the receiver had earned it directly. The apportioned amount will be used to 
calculate investment partnership withholding on Schedule(s) K-1-P(4). See Schedule K-1-P(4) instructions for more information.

What if I am engaged in a unitary business with this partnership?
If you are engaged in a unitary business with this partnership but the partnership is not included in your Schedule UB, 
Combined Apportionment for Unitary Business Group, the partnership should have attached a schedule showing your share of 
the partnership’s apportionment factors and business income. You must determine the portion of your business income taxed 
by Illinois by adding your share of the partnership’s business income and apportionment factors to your own business income 
and apportionment factors. If the partnership is included in your Schedule UB, report the items on the Schedule K-1-P in the 
same manner as you would report the items from a non-unitary partner.

What if I am a Grantor Trust or Disregarded Entity?
If you are a grantor trust or other disregarded entity for federal and Illinois income tax purposes, check the applicable box on 
Line 9b, enter the name and identification number of the taxpayer that will report the income or loss from your Schedule K-1-P 
on their tax return, and provide them with a copy of the Schedule K-1-P and a copy of these instructions.

What if I received Schedule K-1-P from a Grantor Trust or Disregarded Entity?
If the grantor trust or disregarded entity checkbox on Line 9b is checked and your name and identification number are listed, 
report the items from the Schedule K-1-P as if it were provided to you by the taxpayer in Step 1.

What if I believe the partnership or the S corporation has made an error on my Schedule K-1-P?
If you believe the partnership or the S corporation has made an error on your Schedule K-1-P, notify the partnership or the S 
corporation and ask for a corrected Schedule K-1-P. Do not change any items on your copy.

What does Column A represent?
Column A represents your specific share of the partnership’s or the S corporation’s income, modifications, and credits. The 
partnership or the S corporation is required to complete this column if you were a partner or shareholder at any time during 
the partnership’s or the S corporation’s tax year. If you were a resident of Illinois on the last day of the partnership’s or 
S corporation’s taxable year, all amounts in Column A must be included as income, modifications, and credits allocated to 
Illinois. If you were a resident of Illinois on the last day of the partnership’s or the S corporation’s tax year,and you are claiming 
a credit for taxes paid to another state, see “What does Column B represent?” below.

Schedule K-1-P(2) (R-12/23)                                                                                                   Page 2 of 17

What does Column B represent?
Column B represents the portion of Column A that is allocated or apportioned to Illinois. If you were not a resident of Illinois on 
the last day of the partnership’s or the S corporation’s tax year, be sure the amounts reported in Column B are included in the 
Illinois amounts reported on your
•  Form IL-1040, Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax, Column B;
•  Form IL-1041, Schedule NR, Nonresident Computation of Fiduciary Income, Column B; 
•  Form IL-1120, Step 4, Figure your income allocable to Illinois; 
•  Form IL-1065 or Form IL-1120-ST, Step 6, Figure your income allocable to Illinois; or
•  Form IL-990-T, Step 3, Figure your income allocable to Illinois.
If you were a resident of Illinois on the last day of the partnership’s or the S corporation’s tax year,and you are claiming a 
credit for taxes paid to another state, subtract the amount of each item in Column B from the amount of that item in Column A, 
and include the difference in the Non-Illinois Portion column for that item on your
•  Form IL-1040, Schedule CR, Credit for Tax Paid to Other States, or
•  Form IL-1041, Schedule CR, Credit for Tax Paid to Other States.
Steps 3 and 4 - Column B — Step 3, Column B represents your share of the partnership’s or the S corporation’s 
nonbusiness income allocated to Illinois. Step 4, Column B, represents your share of the partnership’s or the S corporation’s 
business income apportioned to Illinois.

Should I round?
You must round the dollar amounts on Schedules K-1-P and Schedules K-1-P(3) to whole-dollar amounts. To do this, you 
should drop any amount less than 50 cents and increase any amount of 50 cents or more to the next higher dollar.

What if I need additional assistance or forms?
•  For assistance, forms, or schedules, visit our website at tax.illinois.gov or scan the QR code 
   provided.
•  Write us at: 
  ILLINOIS DEPARTMENT OF REVENUE
  PO BOX 19001
  SPRINGFIELD IL  62794-9001
•  Call 1 800 732-8866 or 217 782-3336 (TTY at 1 800 544-5304).
•  Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. (Springfield office) and 8:30 a.m. to 
   5:00 p.m. (all other offices), Monday through Friday.

Step-by-Step Instructions for individuals filing Form IL-1040
If you were a resident of Illinois on the last day of the partnership’s or S corporation’s taxable year and you are not claiming a 
credit for taxes paid to another state, you will follow the Column A instructions beginning with Step 5. The figures in Steps 3 and 
4 are included in the Adjusted Gross Income reported on Line 1 of your IL-1040. 
If the partnership that completed the Schedule K-1-P entered “investment partnership” in Step 1, Line 4, then Column B should 
be blank. Do not use the Column B instructions. Instead, refer to the instructions under General Information, “What if the 
partnership is an investment partnership?”

Steps 3 and 4 - Your share of nonbusiness and business income or loss —
Follow the Steps 3 and 4 instructions to determine the amounts to include on your Form IL-1040, Schedule NR or Schedule CR.
Column A - Member’s share — The amounts reported on Lines 10 through 31 must match your federal Schedule K-1. 
Column B - Illinois share — To determine the amount to include on specific lines of your Form IL-1040 and Schedule NR, 
add specific lines in Step 3, Column B, to specific lines in Step 4, Column B. The following instructions explain what lines to add 
together and on what line of your form or schedule these totals are to be included.
Use the following instructions in order to include the income from Schedule K-1-P, Steps 3 and 4, on your 
•  Form IL-1040, Schedule NR, Step 3, Lines 5 through 19, Column B, or 
•  Form IL-1040, Schedule CR, Step 2, Lines 1 through 15, Column B. 
Interest income - (Lines 10 and 23)
Nonbusiness interest is allocable to your state of residence. If you are a nonresident, Step 3, Line 10, Column B, should be 
“0.” If the Schedule K-1-P you received shows an amount in Column B of this line, you should notify the partnership or S 
corporation who issued you the schedule and ask for a corrected Schedule K-1-P.
Schedule K-1-P(2) (R-12/23)                                                                                            Page 3 of 17

Nonresidents: Include the amount from Step 4, Line 23, Column B, on your Form IL-1040, Schedule NR, 
Step 3, Line 6, Column B.
Residents claiming credit for taxes paid in other states: Subtract the amount on Step 4, Line 23, Column B, from the 
amount on Step 4, Line 23, Column A, and include the result on your Form IL-1040, Schedule CR, Step 2, Line 2, Column B. 
Dividend income - (Lines 11 and 24)
Nonbusiness dividends are allocable to your state of residence. If you are a nonresident, Step 3, Line 11, Column B, should 
be “0.” If the Schedule K-1-P you received shows an amount in Column B of this line, you should notify the partnership or S 
corporation who issued you the schedule and ask for a corrected Schedule K-1-P.
Nonresidents: Include the amount from Step 4, Line 24, Column B, on your Form IL-1040, Schedule NR, Step 3, Line 7, 
Column B. 
Residents claiming credit for taxes paid in other states: Subtract the amount on Step 4, Line 24, Column B, from the 
amount on Step 4, Line 24, Column A, and include the result on your Form IL-1040, Schedule CR, Step 2, Line 3, Column B. 

Rents, royalties, partnerships, S corporations, estates, and trusts - (Lines 12 - 15, 20 - 22, 25, and 28 - 29)
Enter the amounts from Columns A and B for each line, and total the amounts for each column. 
             Column A         Column B
Line 12   ______________  ______________
Line 13   ______________  ______________
Line 14   ______________  ______________
Line 15   ______________  ______________
Line 20   ______________  ______________
Line 21   ______________  ______________
Line 22   ______________  ______________
Line 25   ______________  ______________
Line 28   ______________  ______________
Line 29   ______________  ______________
Total     ______________  ______________
Do not double count items reported as both unrecaptured Section 1250 gains on Schedule K-1-P, Line 28, and as Section 1231 
gains on Schedule K-1-P, Line 30.
Nonresidents: Include the total amount from Column B on your Form IL-1040, Schedule NR, Step 3, Line 15, Column B.
Residents claiming taxes paid in other states: Subtract the amount in Column B from the total amount in Column A, and 
include the result on your Form IL-1040, Schedule CR, Step 2, Line 11, Column B. 

Capital gain or loss - (Lines 16 - 18 and 26 - 27)
Enter the amounts from Columns A and B for each line, and total the amounts for each column. 
            Column A          Column B
Line 16   ______________  ______________
Line 17   ______________  ______________
Line 18   ______________  ______________
Line 26   ______________  ______________
Line 27   ______________  ______________
Total     ______________  ______________
Nonresidents: Include the total amount from Column B on your Form IL-1040, Schedule NR, Step 3, Line 11, Column B.
You may include any capital loss amounts on your Form IL-1040, Schedule NR, Step 3, Line 11, Column B, only to the extent 
those loss amounts are included in your federal adjusted gross income.
Residents claiming taxes paid in other states: Subtract the amount in Column B from the total amount in Column A, and 
include the result on your Form IL-1040, Schedule CR, Step 2, Line 7, Column B. 
Other gains or losses - (Lines 28 and 30)
Do not double count items reported as both unrecaptured Section 1250 gains on Schedule K-1-P, Line 28, and as Section 1231 
gains on Schedule K-1-P, Line 30.
Nonresidents: Include the amount from Step 4, Line 30, Column B, on your Form IL-1040, Schedule NR, Step 3, Line 12, 
Column B.

Schedule K-1-P(2) (R-12/23)                                                                         Page 4 of 17

Residents claiming taxes paid in other states: Subtract the amount on Step 4, Line 30, Column B, from the amount on Step 
4, Line 30, Column A, and include the result on your Form IL-1040, Schedule CR, Step 2, Line 8, Column B.

Other income - (Lines 19 and 31)
The partnership or the S corporation is required to identify or send you a breakdown of the items reported on Step 3, Line 19, 
and Step 4, Line 31. This identification or breakdown will determine on what lines of your federal return you need to report the 
income in Column A. 
Nonresidents: The amounts reported in Column B need to be reported on the corresponding lines of your Form IL-1040, 
Schedule NR, Step 3, Column B. 
Residents claiming taxes paid in other states: Subtract the amounts in Column B from the corresponding amounts in 
Column A, and include the results on the appropriate lines of your Form IL-1040, Schedule CR, Step 2, Column B.

Step 5 - Your share of Illinois additions and subtractions —
Column A - Member’s share of additions and subtractions —
Lines 32 through 37 - Enter the amounts from Column A for each line, and total the amounts for the column. 
          Column A
Line 32   ______________
Line 33   ______________
Line 34   ______________
Line 35   ______________
Line 36   ______________
Line 37   ______________
Total     ______________
Enter the total on Form IL-1040, Schedule M, Other Additions and Subtractions for Individuals, Step 2, Line 2 (see 
Form IL-1040, Schedule M instructions).
Lines 38a, 38b and 41 through 47 - Enter the amounts from Column A for each line, and total the amounts for the 
column.  
          Column A
Line 38a  ______________
Line 38b  ______________
Line 41   ______________
Line 42   ______________
Line 43   ______________
Line 44   ______________
Line 45   ______________
Line 46   ______________
Line 47   ______________
Total     ______________
Enter the total on Form IL-1040, Schedule M, Step 3, Line 14 (see Form IL-1040, Schedule M Instructions).
Line 39 - Include the amount from Line 39 on your Form IL-1040, Schedule 1299-C, Income Tax Subtractions and Credits (for 
individuals), Step 1, Line 2.
Line 40 - Include the amount from Line 40 on your Form IL-1040, Schedule 1299-C, Step 1, Line 5.
Column B - Illinois share of additions and subtractions —
Lines 32 through 37 - Enter the amounts from Columns A and B for each line, and total the amounts for each column. 
          Column A             Column B
Line 32   ______________  ______________
Line 33   ______________  ______________
Line 34   ______________  ______________
Line 35   ______________  ______________
Line 36   ______________  ______________
Line 37   ______________  ______________
Total     ______________  ______________
Schedule K-1-P(2) (R-12/23)                                                                                        Page 5 of 17

Nonresidents: Include the total amount from Column B on your Form IL-1040, Schedule NR, Step 4, Line 40, Column B.
Residents claiming credit for taxes paid in other states: Subtract the total amount in Column B from the total amount in 
Column A, and enter the result on your Form IL-1040, Schedule CR, Step 3, Line 35, Column B.
Lines 38a through 47 - Enter the amounts from Columns A and B for each line, and total the amounts for each column. 
            Column A          Column B
Line 38a  ______________    ______________
Line 38b  ______________    ______________
Line 39   ______________    ______________
Line 40   ______________    ______________
Line 41   ______________    ______________
Line 42   ______________    ______________
Line 43   ______________    ______________
Line 44   ______________    ______________
Line 45   ______________    ______________
Line 46   ______________    ______________
Line 47   ______________    ______________
Total     ______________    ______________
Nonresidents: Include the total amount from Column B on your Form IL-1040, Schedule NR, Step 4, Line 44, Column B. 
Residents claiming credit for taxes paid to other states: Subtract the total amount in Column B from the total amount in 
Column A, and enter the result on your Form IL-1040, Schedule CR, Step 3, Line 39, Column B.

Step 6 - Your share of the Illinois August 1, 1969, appreciation amounts —
Column A - Member’s share — 
Line 48 - Include the amount from Line 48 on your Form IL-1040, Schedule F, Gains from Sales or Exchanges of Property 
Acquired Before August 1, 1969, Step 3, Line 6, Column H. 
Lines 49 and 50 - If Line 50 is blank, include the amount on Line 49 on your Schedule F, Step 3, Line 6, Column I. Otherwise, 
skip Line 49 and include the amount on Line 50 on your Form IL-1040, Schedule F, Step 3, Line 6, Column I.
Line 51 - Include the amount from Line 51 on your Form IL-1040, Schedule F, Step 2, Line 2.
Column B - Illinois share —
Lines 48 through 51 - Enter the amounts from Columns A and B for each line, and total the amounts for each column. 
If Line 50 is blank, add Lines 48, 49, and 51 for both Columns A and B. Otherwise, add Lines 48, 50, and 51. 
            Column A         Column B
Line 48   ______________  ______________
Line 49   ______________  ______________
Line 50   ______________  ______________
Line 51   ______________  ______________
Total     ______________  ______________
Nonresidents: Include the total amount from Column B as a subtraction on your Form IL-1040, Schedule NR, Step 4, Line 44, 
Column B. 
Residents claiming taxes paid in other states: Subtract the total amount in Column B from the total amount in Column A, 
and include the result on your Form IL-1040, Schedule CR, Step 3, Line 39, Column B.

Step 7 - Your share of Illinois credits, recapture, pass-through withholding payments, pass-
through entity tax credit, and federal income subject to surcharge — If the partnership or S corporation has 
passed through to you any credit, recapture amounts, income tax payments made on your behalf, or federal income subject to 
surcharge on Lines 52a through 57, see the specific instructions for Step 7 at the end of these instructions for more information. 

Step-by-Step Instructions for trusts or estates filing Form IL-1041
If you were a resident of Illinois on the last day of the partnership’s or S corporation’s taxable year and you are not claiming a 
credit for taxes paid to another state, you will follow the Column A instructions beginning with Step 5. The figures in Steps 3 and 
4 are included in the Federal Taxable Income reported on Line 1 of your IL-1041. 
If the partnership that completed the Schedule K-1-P entered “investment partnership” in Step 1, Line 4, then Column B should 
be blank. Do not use the Column B instructions for this step. Instead, refer to the instructions under General Information, “What 
if the partnership is an investment partnership?”
Schedule K-1-P(2) (R-12/23)                                                                                            Page 6 of 17

Steps 3 and 4 - Your share of nonbusiness and business income or loss —
Follow the Steps 3 and 4 instructions to determine the amounts to include on your Form IL-1041, Schedule NR or Schedule CR.
Column A - Member’s share — The amounts reported on Lines 10 through 31 must match your federal Schedule K-1. 
Column B - Illinois share — To determine the amount to include on specific lines of your Form IL-1041 and Schedule CR or 
NR, add specific lines in Step 3, Column B, to specific lines in Step 4, Column B. The following instructions explain what lines 
to add together and on what line of your form or schedule these totals are to be included.
Interest income - (Lines 10 and 23)
Nonbusiness interest is allocable to your state of residence. If you are a nonresident, Step 3, Line 10, Column B, should 
be “0.” If the Schedule K-1-P you received shows an amount in Column B of this line, you should notify the partnership or 
S corporation who issued you the schedule and ask for a corrected Schedule K-1-P.
Nonresidents: Include your fiduciary’s share of business interest from Step 4, Line 23, Column B, on your Form IL-1041, 
Schedule NR, Step 3, Line 1, Column C.
Residents claiming credit for taxes paid in other states: Subtract the amount on Step 4, Line 23, Column B, from the 
amount on Step 4, Line 23, Column A, and include the result on your Form IL-1041, Schedule CR, Step 2, Line 1, Column C.
Dividend income - (Lines 11 and 24)
Nonbusiness dividends are allocable to your state of residence. If you are a nonresident, Step 3, Line 11, Column B, should 
be “0.” If the Schedule K-1-P you received shows an amount in Column B of this line, you should notify the partnership or 
S corporation who issued you the schedule and ask for a corrected Schedule K-1-P.
Nonresidents: Include your fiduciary’s share of business dividends from Step 4, Line 24, Column B, on your Form IL-1041, 
Schedule NR, Step 3, Line 2, Column C.
Residents claiming credit for taxes paid in other states: Subtract the amount on Step 4, Line 24, Column B, from the 
amount on Step 4, Line 24, Column A, and include the result on your Form IL-1041, Schedule CR, Step 2, Line 2, Column C.
Income or loss from partnerships and S corporations – 
(Lines 12 - 22 and 25 - 31)
Enter the amounts from Columns A and B for each line, and total the amounts for each column.
           Column A           Column B
Line 12  ______________  ______________
Line 13  ______________  ______________
Line 14  ______________  ______________
Line 15  ______________  ______________
Line 16  ______________  ______________
Line 17  ______________  ______________
Line 18  ______________  ______________
Line 19  ______________  ______________
Line 20  ______________  ______________
Line 21  ______________  ______________
Line 22  ______________  ______________
Line 25  ______________  ______________
Line 26  ______________  ______________
Line 27  ______________  ______________
Line 28  ______________  ______________
Line 29  ______________  ______________
Line 30  ______________  ______________
Line 31  ______________  ______________
Total    ______________  ______________
Note: Do not double count items reported as both unrecaptured Section 1250 gains on Schedule K-1-P, Line 28, and as 
Section 1231 gains on Schedule K-1-P, Line 30.
Nonresidents: Include your fiduciary’s share of this total amount from Column B on your Form IL-1041, Schedule NR, Step 3, 
Line 6, Column C.
Note: You may include any capital loss amounts on your Form IL-1041, Schedule NR, Step 3, Line 6, Column C, only to the 
extent those loss amounts are included in your federal taxable income.

Schedule K-1-P(2) (R-12/23)                                                                 Page 7 of 17

Residents claiming credit for taxes paid in other states: Subtract the total amount in Column B from the total amount in 
Column A, and include the result on your Form IL-1041, Schedule CR, Step 2, Line 6, Column C.

Step 5 - Your share of Illinois additions and subtractions —
Column A - Member’s share of additions and subtractions — 
Lines 32 through 37 - Enter the amounts from Column A for each line and total the amounts for the column. 
          Column A
Line 32   ______________
Line 33   ______________
Line 34   ______________
Line 35   ______________
Line 36   ______________
Line 37   ______________
Total     ______________
Enter the total on Form IL-1041, Step 2, Line 9.
Lines 38a, 38b and 41 - 47 - 
Enter the amounts from Column A for each line, and total the amounts for the column. 
          Column A
Line 38a  ______________
Line 38b  ______________
Line 41   ______________
Line 42   ______________
Line 43   ______________
Line 44   ______________
Line 45   ______________
Line 46   ______________
Line 47   ______________
Total     ______________
Enter the total on Form IL-1041, Step 3, Line 22.
Line 39 - Include the amount from Line 39 on your Schedule 1299-B, River Edge Redevelopment Zone or Foreign Trade Zone 
(or sub-zone) Subtractions (for corporations and fiduciaries), Step 1, Line 2.
Line 40 - Include the amount from Line 40 on your Schedule 1299-B, Step 1, Line 5.
Column B - Illinois share of additions and subtractions — 
Lines 32 through 37 - Enter the amounts from Columns A and B for each line, and total the amounts for each column. 
            Column A           Column B
Line 32   ______________     ______________
Line 33   ______________     ______________
Line 34   ______________     ______________
Line 35   ______________     ______________
Line 36   ______________     ______________
Line 37   ______________     ______________
Total     ______________     ______________
Nonresidents: Include the total amount from Column B on your Form IL-1041, Schedule NR, Step 4, Line 35, Column B.
Residents claiming credit for taxes paid in other states: Subtract the total amount in Column B from the total amount in 
Column A, and enter the result on your Form IL-1041, Schedule CR, Step 3, Line 32, Column B.

Schedule K-1-P(2) (R-12/23)                                                                               Page 8 of 17

Lines 38a, 38b, and 41 through 47 - Enter the amounts from Columns A and B for each line, and total the amounts for 
each column.    
            Column A          Column B
Line 38a  ______________  ______________
Line 38b  ______________  ______________
Line 41   ______________  ______________
Line 42   ______________  ______________
Line 43   ______________  ______________
Line 44   ______________  ______________
Line 45   ______________  ______________
Line 46   ______________  ______________
Line 47   ______________  ______________
Total     ______________  ______________
Nonresidents: Include the total amount from Column B on your Form IL-1041, Schedule NR, Step 4, Line 47, Column B.
Residents claiming credit for taxes paid in other states: Subtract the total amount in Column B from the total amount in 
Column A, and enter the result on your Form IL-1041, Schedule CR, Step 3, Line 45. Column B.
Line 39 - 
Nonresidents: Include the amount from Column B on your Form IL-1041, Schedule NR, Step 4, Line 42, Column B.
Residents claiming credit for taxes paid in other states: Subtract the amount in Column B from the amount in Column A, 
and enter the result on your Form IL-1041, Schedule CR, Step 3, Line 40, Column B.
Line 40 - 
Nonresidents: Include the amount from Column B on your Form IL-1041, Schedule NR, Step 4, Line 43, Column B.
Residents claiming credit for taxes paid in other states: Subtract the amount in Column B from the amount in Column A, 
and enter the result on your Form IL-1041, Schedule CR, Step 3, Line 41, Column B.

Step 6 - Your share of the Illinois August 1, 1969, appreciation amounts —
Column A - Member’s share —
Line 48 - Include the amount from Line 48 on your Form IL-1041, Schedule F, Line 2, Column K.
Line 49 - Include the amount from Line 49 on your Form IL-1041, Schedule F, Line 2, Column L.
Line 51 - Include the amount from Line 51 on your Form IL-1041, Schedule F, Line 2, Column M.
Column B - Illinois share —
Lines 48, 49, and 51 - Enter the amounts from Columns A and B for each line, and total the amounts for each column. 
            Column A         Column B
Line 48   ______________  ______________
Line 49   ______________  ______________
Line 51   ______________  ______________
Total     ______________  ______________
Nonresidents: Add Lines 48, 49 and 51, Column B. Include the total amount as a subtraction on your Form IL-1041, 
Schedule NR, Step 4, Line 38, Column B.
Residents claiming taxes paid in other states: Subtract the total amount in Column B from the total amount in Column A, and 
include the result on your Form IL-1041, Schedule CR, Step 3, Line 36, Column B.

Step 7 - Your share of Illinois credits, recapture, pass-through withholding payments, pass-
through entity tax credit, and federal income subject to surcharge — If the partnership or S corporation has 
passed through to you any credit, recapture amounts, income tax payments made on your behalf, or federal income subject to 
surcharge on Lines 52a through 57, see the specific instructions for Step 7 at the end of these instructions for more information.

Schedule K-1-P(2) (R-12/23)                                                                                      Page 9 of 17

Step-by-Step Instructions for partnerships filing Form IL-1065 and S corporations 
filing Form IL-1120-ST
If the partnership that completed the Schedule K-1-P entered “investment partnership” in Step 1, Line 4, then Column B should 
be blank. Do not use the Column B instructions. Instead, refer to the instructions under General Information, “What if the 
partnership is an investment partnership?”

Steps 3 and 4 - Your share of nonbusiness and business income or loss —
Column A - Member’s share — The amounts reported on Lines 10 through 31 must match your federal Schedule K-1. 
Column B - Illinois share — To determine the amount to include on specific lines of your Form IL-1065 or Form IL-1120-ST, 
add specific lines in Step 3, Column B, to specific lines in Step 4, Column B. The following instructions explain what lines to add 
together and on what line of your form or schedule these totals are to be included.
Lines 10 through 31 - Include the amounts in Step 3, Column B in the total amount you report on your Schedule NB. 
Do not double count items reported as both unrecaptured Section 1250 gains on Schedule K-1-P, Line 28, and as Section 1231 
gains on Schedule K-1-P, Line 30.
You may include any capital loss amounts on your Schedule NB only to the extent those loss amounts are included in your 
unmodified base income on Form IL-1065 or Form IL-1120-ST, Step 3, Line 13.
Include the amounts in Step 4, Column B in the total amount you report on Step 6, Line 45, of your Form IL-1065 or 
Form IL-1120-ST.
Note: You may include any capital loss amounts on your Form IL-1065 or Form IL-1120-ST, Step 6, Line 45, only to the extent 
those loss amounts are included in your unmodified base income on Form IL-1065 or Form IL-1120-ST, Step 3, Line 13.

Step 5 - Your share of Illinois additions and subtractions —
Column A - Member’s share of additions and subtractions — 
Lines 32 through 37 - The amounts on these lines are reported in your Illinois base income by including them on Step 4, 
Line 19, of your Form IL-1065 or IL-1120-ST.
Lines 38a, 38b, and 44 through 47 - The amounts on these lines are reported in your Illinois base income by including the 
total of these lines on Step 5, Line 32, of your Form IL-1065 or Form IL-1120-ST.
Line 39 - Include the amount from Line 39 on your Schedule 1299-A, Tax Subtractions and Credits (for partnerships and 
S corporations), Step 1, Line 2.
Line 40 - Include the amount from Line 40 on your Schedule 1299-A, Step 1, Line 5.
Line 41 - Include the amount from Line 41 on your Schedule 1299-A, Step 1, Line 8.*
Line 42 - Include the amount from Line 42 on your Schedule 1299-A, Step 1, Line 11.*
Line 43 - Include the amount from Line 43 on your Schedule 1299-A, Step 1, Line 14.*
*Partnerships filing Form IL-1065 are not eligible for these subtractions.
In addition, report the business and nonbusiness amounts in Column A, Lines 32 through 47 as indicated in the following 
instructions.
Column A - Member’s share of business and nonbusiness amounts —
Lines 32 through 47 - 
Nonbusiness amounts - Enter the total of any nonbusiness amounts from Lines 32 through 37 and 38b through 47 (do not 
include amounts from Line 38a), Column A.
A Total of nonbusiness amounts from Lines 32 through 37, Column A.                       ______________
B Total of nonbusiness amounts from Lines 38b through 47, Column A.                      ______________
C Subtract Line B from Line A.                                                           ______________
Include the total amount from Line C in the total amount reported on your Schedule NB. 
Business amounts - Enter the total of any business amounts from Lines 32 through 37 and 38a through 47 (excluding 
Line 38b), Column A. 
A Total of business amounts from Lines 32 through 37, Column A.                          ______________
B Total of business amounts from Lines 38a through 47 (excluding Line 38b), Column A.    ______________
C Subtract Line B from Line A.                                                           ______________
Include the total amount from Line C in the total amount reported on Step 6, Line 37, of your Form IL-1065 or Form IL-1120-ST.

Schedule K-1-P(2) (R-12/23)                                                                                        Page 10 of 17

Column B - Illinois share of business and nonbusiness amounts —
Lines 32 through 47 - 
Nonbusiness amounts - Enter the total of any nonbusiness amounts from Lines 32 through 37 and 38b through 47 (do not 
include amounts from Line 38a), Column B.
A Total of nonbusiness amounts from Lines 32 through 37, Column B.                       ______________
B Total of nonbusiness amounts from Lines 38b through 47, Column B.                      ______________
C Subtract Line B from Line A.                                                           ______________
Include the total amount from Line C in the total amount reported on your Schedule NB. 
Business amounts - Enter the total of any business amounts from Lines 32 through 37 and 38a through 47 (excluding 
Line 38b), Column B.
A Total of business amounts from Lines 32 through 37, Column B.                          ______________
B Total of business amounts from Lines 38a through 47 (excluding Line 38b),Column B.     ______________
C Subtract Line B from Line A.                                                           ______________
Include the total amount from Line C in the total amount reported on Step 6, Line 45, of your Form IL-1065 or Form IL-1120-ST.

Step 6 - Your share of the Illinois August 1, 1969, appreciation amounts —
Column A - Member’s share —
Line 48 - Include the amount from Line 48 on your Schedule F, Line 2, Column K.
Line 49 - Include the amount from Line 49 on your Schedule F, Line 2, Column L.
Line 51 - Include the amount from Line 51 on your Schedule F, Line 2, Column M.
Column B - Illinois share — 
Use the information in Column B when completing Step 6 of the Schedule K-1-P for your partners or shareholders.

Step 7 - Your share of Illinois credits, recapture, pass-through withholding payments, pass-through 
entity tax credit, and federal income subject to surcharge — If the partnership or S corporation has passed 
through to you any credit, recapture amounts, income tax payments made on your behalf, or federal income subject to 
surcharge on Lines 52a through 57, see the specific instructions for Step 7 at the end of these instructions for more information.

Step-by-Step Instructions for corporations filing Form IL-1120
If the partnership that completed the Schedule K-1-P entered “investment partnership” in Step 1, Line 4, then Column B should 
be blank. Do not use the Column B instructions for this step. Instead, refer to the instructions under General Information, “What 
if the partnership is an investment partnership?”

Steps 3 and 4 - Your share of nonbusiness and business income or loss —
Column A - Member’s share — See General Information.
Column B - Illinois share — Step 3 represents your share of the partnership’s or the S corporation’s nonbusiness income 
allocated to Illinois. Step 4 represents your share of the partnership’s or the S corporation’s business income apportioned to 
Illinois. To determine the amount to include on specific lines of your Form IL-1120, add specific lines in Step 3, Column B, to 
specific lines in Step 4, Column B. The following instructions explain what lines to add together and on what line of your form or 
schedule these totals are to be included.
Lines 10 through 31 - Include the amounts in Step 3, Column B in the total amount you report on your Schedule NB. 
Do not double count items reported as both unrecaptured Section 1250 gains on Schedule K-1-P, Line 28, and as Section 1231 
gains on Schedule K-1-P, Line 30.
You may include any capital loss amounts on your Schedule NB only to the extent those loss amounts are included in your 
federal taxable income.
Include the amounts in Step 4, Column B in the total amount you report on your Form IL-1120, Step 4, Line 33.
Note: You may include any capital loss amounts on your Form IL-1120, Step 4, Line 33, only to the extent those loss amounts 
are included in your federal taxable income.

Step 5 - Your share of Illinois additions and subtractions —
Column A - Member’s share of additions and subtractions —
Lines 32 through 37 - The amounts on these lines are reported in your Illinois base income by including them on your 
Form IL-1120, Step 2, Line 7.

Schedule K-1-P(2) (R-12/23)                                                                                    Page 11 of 17

Lines 38a, 38b, and 44 through 47 - The amounts on these lines are reported in your Illinois base income by including the 
total of these lines on your Form IL-1120, Step 3, Line 20.
Line 39 - Include the amount from Line 39 on your Schedule 1299-B, Step 2, Line 10.
Line 40 - Include the amount from Line 40 on your Schedule 1299-B, Step 2, Line 13.
Line 41 - Include the amount from Line 41 on your Schedule 1299-B, Step 2, Line 16.
Line 42 - Include the amount from Line 42 on your Schedule 1299-B, Step 2, Line 19.
Line 43 - Include the amount from Line 43 on your Schedule 1299-B, Step 2, Line 22.
In addition, report the business and nonbusiness amounts in Lines 32 through 47, Column A, as indicated in the following 
instructions
Column A - Member’s share of business and nonbusiness amounts —
Lines 32 through 47 - 
Nonbusiness amounts - Enter the total of any nonbusiness amounts from Lines 32 through 37 and 38b through 47 (do not 
include amounts from Line 38a), Column A.
A Total of nonbusiness amounts from Lines 32 through 37, Column A.                       ______________
B Total of nonbusiness amounts from Lines 38b through 47, Column A.                      ______________
C Subtract Line B from Line A.                                                           ______________
Include the total amount from Line C in the total amount reported on your Schedule NB. 
Business amounts - Enter the total of any business amounts from Lines 32 through 37 and 38a through 47 (excluding 
Line 38b), Column A. 
A Total of business amounts from Lines 32 through 37, Column A.                          ______________
B Total of business amounts from Lines 38a through 47 (excluding Line 38b), Column A.    ______________
C Subtract Line B from Line A.                                                           ______________
Include the total amount from Line C in the total amount reported on Step 4, Line 25, of your Form IL-1120.
Column B - Illinois share of business and nonbusiness amounts — 
Lines 32 through 47 - 
Nonbusiness amounts - Enter the total of any nonbusiness amounts from Lines 32 through 37 and 38b through 47 
(do not include amounts from Line 38a), Column B.
A Total of nonbusiness amounts from Lines 32 through 37, Column B.                       ______________
B Total of nonbusiness amounts from Lines 38b through 47, Column B.                      ______________
C Subtract Line B from Line A.                                                           ______________
Include the total amount from Line C in the total amount reported on your Schedule NB.
Business amounts - Enter the total of any business amounts from Lines 32 through 37 and 38a through 47 (excluding 
Line 38b), Column B.
A Total of business amounts from Lines 32 through 37, Column B.                          ______________
B Total of business amounts from Lines 38a through 47 (excluding Line 38b), Column B.    ______________
C Subtract Line B from Line A.                                                           ______________
Include the total amount from Line C in the total amount reported on Step 4, Line 33, of your Form IL-1120.

Step 7 - Your share of Illinois credits, recapture, pass-through withholding payments, pass-
through entity tax credit, and federal income subject to surcharge — If the partnership or S corporation has 
passed through to you any credit, recapture amounts, income tax payments made on your behalf, or federal income subject to 
surcharge on Lines 52a through 57, see the specific instructions for Step 7 at the end of these instructions for more information.

Schedule K-1-P(2) (R-12/23)                                                                                  Page 12 of 17

Step-by-Step Instructions for exempt organizations filing Form IL-990-T
Step 4 - Your share of business income or loss —
Column A - Member’s share — See General Information.
Column B - Illinois share — Step 4 represents your share of the partnership’s or the S corporation’s business income 
apportioned to Illinois. The following instructions explain what lines to add together and on what line of your form or schedule 
these totals are to be included.
If the partnership that completed the Schedule K-1-P entered “investment partnership” in Step 1, Line 4, then Column B should 
be blank. Do not use the Column B instructions for this step. Instead, refer to the instructions under General Information, “What 
if the partnership is an investment partnership?”
Lines 20 through 31 - Include the amounts in Step 4, Column A in the total amount you report on Form IL-990-T, Step 3, 
Line 4. 
Do not double count items reported as both unrecaptured Section 1250 gains on Schedule K-1-P, Line 28, and as Section 1231 
gains on Schedule K-1-P, Line 30.
You may include any capital loss amounts on your Form IL-990-T, Step 3, Line 4, only to the extent those loss amounts are 
included in your unrelated business taxable income.
Include the amounts in Step 4, Column B in the total amount you report on your Form IL-990-T, Step 3, Line 10.
Note: You may include any capital loss amounts on your Form IL-990-T, Step 3, Line 10, only to the extent those loss amounts 
are included in your unrelated business taxable income.

Step 5 - Your share of Illinois additions and subtractions —
Column A - Member’s share of business amounts —
Lines 32 through 47 (excluding Line 38b) - 
Enter the total of any business amounts from Lines 32 through 37 and 38a through 47 (excluding Line 38b), Column A. 
A Total of business amounts from Lines 32 through 37, Column A.                         ______________
B Total of business amounts from Lines 38a through 47 (excluding Line 38b), Column A.   ______________
C Subtract Line B from Line A.                                                          ______________
Include the total amount from Line C in the total amount reported on Step 3, Line 4, of your Form IL-990-T.
Column B - Illinois share of business amounts — 
Lines 32 through 47 (excluding Line 38b) - 
Enter the total of any business amounts from Lines 32 through 37 and 38a through 47 (excluding Line 38b), Column B. 
A Total of business amounts from Lines 32 through 37, Column B.                         ______________
B Total of business amounts from Lines 38a through 47 (excluding Line 38b), Column B.   ______________
C Subtract Line B from Line A.                                                          ______________
Include the total amount from Line C in the total amount reported on Step 3, Line 10, of your Form IL-990-T.

Step 7 - Your share of Illinois credits, recapture, pass-through withholding payments, pass-through 
entity tax credit, and federal income subject to surcharge — If the partnership or S corporation has passed 
through to you any credit, recapture amounts, income tax payments made on your behalf, or federal income subject to surcharge 
on Lines 52a through 57, see the specific instructions for Step 7 at the end of these instructions for more information.

Schedule K-1-P(2) (R-12/23)                                                                                             Page 13 of 17

Step-by-Step Instructions for Step 7 - Your share of the Illinois credits, recapture, 
pass-through withholding, pass-through            entity           tax credit, and federal income subject 
to surcharge
Line 52 - Illinois Income Tax Credits — For each Line 52a through 52x that has an amount listed in Step 7 of Schedule 
K-1-P, enter, on your Schedule 1299, the corresponding Credit Code and the amount of Distributive Share of Credit from 
Schedule K-1-P. See your Schedule 1299 Instructions for details. Attach Schedule K-1-P to your Schedule 1299. Use the chart 
below to complete your Schedule 1299. 
           Enter the amount from                  Individuals: on         Trusts/Estates/Corporations/ Partnerships/S 
          Schedule K-1-P, Step 7, Line            Schedule 1299-C, Step 3 Exempt Organizations: on     corporations: on 
                                                                          Schedule 1299-D, Step 3      Schedule 1299-A, Step 3
52a   Film Production Services                    5000                    5000                         5000
52b   Enterprise Zone Investment                  5080                    5080                         5080
52c   Enterprise Zone Construction Jobs           5120                    5120                         5120
52d   High Impact Business Construction Jobs      5160                    5160                         5160
52e   Affordable Housing Donations                5260                    5260                         5260
52f    EDGE                                       5300                    5300                         5300
52g   New Construction EDGE                       5320                    5320                         5320
52h    Research and Development                   5340                    5340                         5340
52i    Wages Paid to Ex-Felons                    5380                    5380                         5380
52j    Student-Assistance Contributions           5420                    5420                         5420
52k    Angel Investment                           5460                    5460                         5460
52l    New Markets Development                    5500                    5500                         5500
52m    River Edge Historic Preservation           5540                    5540                         5540
52n   River Edge Construction Jobs                5560                    5560                         5560
52o    Live Theater Production                    5580                    5580                         5580
52p    Hospital                                   5620                    5620                         5620
52q   Invest in Kids                              5660                    5660                         5660
52r    Data Center Construction Employment        5820                    5820                         5820
52s   Apprenticeship Education Expense            0160                    0160                         0160
52t    Historic Preservation                      1030                    1030                         1030
52u   REV Illinois Investment                     5230                    5230                         5230
52v   Agritourism Liability Insurance             5440                    5440                         5440
52w  Recovery and Mental Health                   0180                    0180                         0180
52x   Other Income Tax Credits                    n/a                     n/a                                 n/a

Note: For tax years ending on or after December 31, 2000, partnerships and S corporations automatically pass the following 
credits through to their partners or shareholders:
Line 52a - Film Production Services
Line 52b - Enterprise Zone Investment
Line 52c - Enterprise Zone Construction Jobs
Line 52d - High Impact Business Construction Jobs
Line 52e - Affordable Housing Donations
Line 52f - Economic Development for a Growing Economy (EDGE) 
Line 52g - New Construction EDGE
Line 52h - Research and Development
Line 52i - Wages Paid to Ex-Felons
Line 52j - Student-Assistance Contributions
Line 52k - Angel Investment
Line 52l - New Markets Development
Line 52m - River Edge Historic Preservation
Line 52n - River Edge Construction Jobs 
Line 52o - Live Theater Production
Line 52p - Hospital
Schedule K-1-P(2) (R-12/23)                                                                                      Page 14 of 17

Line 52q - Invest in Kids
Line 52r - Data Center Construction Employment 
Line 52s - Apprenticeship Education Expense
Line 52t - Historic Preservation 
Line 52u - REV Illinois Investment
Line 52v - Agritourism Liability Insurance
Line 52w - Recovery and Mental Health
Line 52x - Other income tax credits
Note: Partnerships and S corporations that receive income tax credit may use the credit to offset their nonresident members’ 
withholding liability. Amounts or portions of the amounts received on Lines 52a through 52x may be entered on Schedule 
K-1-P(3), Step 3, Line 17, to offset pass-through withholding or Schedule K-1-P(4), Step 4, Line 10, to offset investment 
partnership withholding. See Schedule K-1-P(1) or Schedule K-1-P(4) instructions for more information.
Line 53a — PTE tax credit — If the partnership or S corporation distributed PTE tax credit to you, include the amount on
• Individuals — Form IL-1040, Step 8, Line 28. 
• Trusts or Estates — 
  •     Form IL-1041, Line 55d, if the PTE tax credit amount is retained by the fiduciary. 
  •     Schedule K-1-T, Line 50, if the PTE tax credit amount is distributed to your beneficiaries.
• Partnerships or S corporations — each partner’s or shareholder’s Schedule K-1-P, Line 53a. Enter that partner’s or 
  shareholder’s distributive share. 
• Corporations — Form IL-1120, Line 61d. 
• Exempt organizations — Form IL-990-T, Line 29d. 
The credit on Line 53a is allowed against the tax imposed on the member under IITA subsections 201(a) and (b). 
A nonresident individual member of a partnership or S corporation for a taxable year in which the election to pay PTE tax was 
made shall not be required to file an income tax return under the IITA for such taxable year if the only source of net income 
of the individual (or the individual and the individual’s spouse in the case of a joint return) is from an entity making the PTE 
election and the credit allowed to the member equals or exceeds the individual’s liability for the tax imposed under subsections 
(a) and (b) of Section 201 of the IITA for the tax year.
Note: Investment partnerships that receive PTE tax credit may use the credit to offset their investment partnership withholding 
liability, to the extent that such credit would otherwise be distributable to its nonresident partners. The amount or a portion 
of the amount received on Line 53a may be entered on Schedule K-1-P(4), Step 4, Line 12, to offset investment partnership 
withholding. See Schedule K-1-P(4) instructions for more information.
Line 53b — Enter this amount on Form IL-477, Line 4. 
Note: Partnerships and S corporations that receive replacement tax investment credit may use the credit to offset their 
nonresident members’ withholding liability. The amount or a portion of the amount received on Lines 53b may be entered 
on Schedule K-1-P(3), Step 3, Line 14, to offset pass-through withholding or Schedule K-1-P(4), Step 4, Line 11, to offset 
investment partnership withholding. See Schedule K-1-P(1) or Schedule K-1-P(4) instructions for more information.
Lines 54a, 54b, 54c, and 54d — Recapture — Your share of recapture is based on your share of the original investment 
credit. 
• If you shared in the original credit and you are no longer a partner or shareholder of the partnership or the S corporation in 
  the year of recapture, Lines 54a, 54b, 54c, and 54d will be the only lines completed on this schedule. 
• If your share in the year of the original investment credit is different from your share in the year of the recapture, Lines 54a, 
  54b, 54c, and 54d will be completed and the partnership or the S corporation will attach a sheet explaining the difference. 
If recapture is reported to you for a particular investment credit, and you claimed the corresponding credit against your 
Illinois income or replacement tax liability in a previous year, you must file a completed Illinois Income Tax return including 
Schedule 4255. Include the total amount from 
• Schedule K-1-P, Lines 54a, 54b, and 54c on Schedule 4255, Step 4, Line 17, and
• Schedule K-1-P, Line 54d on Schedule 4255, Step 6, Line 26.
Line 55 — If the partnership or S corporation made income tax payments on your behalf, include the amount on your 
• Form IL-1040, Step 8, Line 27,
• Form IL-1041, Step 7, Line 55c,
• Form IL-1065, Step 9, Line 65c, 
• Form IL-1120-ST, Step 9, Line 65c, 

Schedule K-1-P(2) (R-12/23)                                                                                      Page 15 of 17

• Form IL-1120, Step 8, Line 61c, or
• Form IL-990-T Step 6, Line 29c.
Schedule K-1-P, Step 1, Line 3, must be completed or the pass-through withholding (including any applicable investment 
partnership withholding) reported on this line may not be credited to your return. 
Note: Individuals, trusts, estates, partnerships, and corporations (including S corporations) only - Pass-through 
withholding payments made on your behalf and reported to you on Schedule K-1-P, Line 55, are based on items of business 
income and certain items of nonbusiness income only. If you had Illinois income from other sources and the payments made on 
your behalf do not cover your liability, you must file a return to report the tax on all of your Illinois income and claim a credit for 
pass-through withholding payments made on your behalf.
Note: Partners in an investment partnership that have been distributed an investment partnership withholding credit must 
determine if they are eligible to claim the credit prior to claiming the credit on their return. See “What if the partnership is an 
investment partnership?” section in these instructions for more information. 
Line 56 — This is your share of taxable gains attributable to transactions subject to the Compassionate Use of Medical 
Cannabis Program Act surcharge. Use this information when calculating the surcharge on your return.
See the following instructions and the instructions for the return you are filing for more information.
Definitions related to the surcharge —
Organization registrantmeans a corporation, partnership, trust, limited liability company (LLC), or other organization that 
holds either a medical cannabis cultivation center registration issued by the Illinois Department of Agriculture or a medical 
cannabis dispensary registration issued by the Illinois Department of Financial and Professional Regulation.
Transactions subject to the surchargemeans sales and exchanges of
• capital assets;
• depreciable business property;
• real property used in the trade or business; and
• Section 197 intangibles of an organization registrant.
What is the surcharge?
For each taxable year beginning or ending during the Compassionate Use of Medical Cannabis Program, a surcharge is 
imposed on all taxpayers on income arising from the transactions subject to the surcharge of an organization registrant under 
the Compassionate Use of Medical Cannabis Program Act. 
The amount of the surcharge is equal to the amount of federal income tax liability for the taxable year attributable to the 
transactions subject to the surcharge.
To whom does the surcharge apply?
The surcharge is imposed on any taxpayer who incurs a federal income tax liability on the income realized on a “transaction 
subject to the surcharge,” including individuals and other taxpayers who are not themselves the “organization registrant” that 
engaged in the transaction.
A partner or shareholder who incurs a federal income tax liability on income from a transaction subject to surcharge passed 
through from a partnership or S corporation will incur a surcharge.
Note: Although a unitary business group filing combined Illinois returns is treated as a single taxpayer and its members are 
jointly and severally liable for any surcharge imposed on the group, the group itself is not an organization registrant and 
transactions of any member that is not itself an organization registrant are not subject to the surcharge.
How do I use the amount reported on Line 56?
The amount reported on Line 56 identifies your share of any taxable gains attributable to transactions subject to the surcharge. 
The partnership and S corporation listed in Step 1 should have also provided you with a breakdown itemizing any amount 
reported on Line 56. 
Use this information when completing the “Surcharge Worksheet” found in the Form IL-1120 Instructions. Line 56 identifies 
taxable gains attributable to transactions subject to the surcharge that should not be included when you complete Line 2 of the 
worksheet. 
Note: The amount on Line 56 identifies taxable gains attributable to transactions subject to the surcharge, not federal income 
tax liability for the taxable year attributable to the transactions subject to the surcharge. Exclude this income before figuring the 
federal income tax amount on Line 2 of the worksheet.
For more information, see 86 Ill. Adm. Code Section 100.2060.
Line 57 — This is your share of taxable gains attributable to transactions subject to the surcharge on the sale of assets by 
gaming licensee. Use this information when calculating the surcharge on your return.
See the instructions below and the instructions for the return you are filing for more information. 

Schedule K-1-P(2) (R-12/23)                                                                                     Page 16 of 17

Definitions related to the surcharge —
Gaming licensee is an organization licensee under the Illinois Horse Racing Act of 1975 and/or an organization gaming 
licensee under the Illinois Gambling Act.
Transactions subject to the surchargemeans sales and exchanges of
•   capital assets;
• depreciable business property;
•  real property used in the trade or business; and
•  Section 197 intangibles of a gaming licensee.
What is the surcharge?
For each taxable year 2019 through 2027, a surcharge is imposed on all taxpayers on income arising from the transactions 
subject to the surcharge on the sale of assets by gaming licensee. 
The amount of the surcharge is equal to the amount of federal income tax liability for the taxable year attributable to the 
transactions subject to the surcharge.
To whom does the surcharge apply?
The surcharge is imposed on any taxpayer who incurs a federal income tax liability on the income realized on a “transaction 
subject to the surcharge,” including individuals and other taxpayers who are not themselves the “gaming licensee” that engaged 
in the transaction.
The surcharge imposed shall not apply if 
• the organization gaming license, organization license, or racetrack property is transferred as a result of any of the following:
  •   bankruptcy, a receivership, or a debt adjustment initiated by or against the initial licensee or the substantial owners of 
      the initial licensee;
  •   cancellation, revocation, or termination of any such license by the Illinois Gaming Board or the Illinois Racing Board;
  •   a determination by the Illinois Gaming Board that transfer of the license is in the best interests of Illinois gaming;
  •   the death of an owner of the equity interest in a licensee;
  •   acquisition of a controlling interest in the stock or substantially all of the assets of a publicly traded company;
  •   a transfer by a parent company to a wholly owned subsidiary; or 
  •   the transfer or sale to or by one person to another person where both persons were initial owners of the license when 
      the license was issued; or
• the controlling interest in the organization gaming license, organization license, or racetrack property is transferred in a 
  transaction to lineal descendants in which no gain or loss is recognized or as a result of a transaction in accordance with 
  Section 351 of the Internal Revenue Code in which no gain or loss is recognized; or 
• live horse racing was not conducted in 2010 at a racetrack located within 3 miles of the Mississippi River under a license 
  issued pursuant to the Illinois Horse Racing Act of 1975.
The transfer of an organization gaming license, organization license, or racetrack property by a person other than the initial 
licensee to receive the organization gaming license is not subject to a surcharge. 
A partner or shareholder who incurs a federal income tax liability on income from a transaction subject to surcharge passed 
through from a partnership or S corporation will incur a surcharge.
Note: Although a unitary business group filing combined Illinois returns is treated as a single taxpayer and its members are 
jointly and severally liable for any surcharge imposed on the group, the group itself is not a gaming licensee and transactions of 
any member that is not itself a gaming licensee are not subject to the surcharge.
How do I use the amount reported on Line 57?
The amount reported on Line 57 identifies your share of any taxable gains attributable to transactions subject to the surcharge. 
The partnership and S corporation listed in Step 1 should have also provided you with a breakdown itemizing any amount 
reported on Line 57. 
Use this information when completing the “Surcharge Worksheet” found in the Form IL-1120 instructions. Line 57 identifies 
federal income attributable to transactions subject to the surcharge that should not be included when you complete Line 2 of 
the worksheet. 
Note: The amount on Line 57 identifies taxable gains attributable to transactions subject to the surcharge, not federal income 
tax liability for the taxable year attributable to the transactions subject to the surcharge. Exclude this income before figuring the 
federal income tax amount on Line 2 of the worksheet.

Schedule K-1-P(2) (R-12/23)                                                                                              Page 17 of 17