PDF document

- 1 -

Reset Form
Do not staple or paper clip.

2 0

Rev. 08/09/24 Ohio IT K-1 10211411
Use only black ink and UPPERCASE letters.
Part I - Investor / Owner / Beneficiary and Entity Information
For calendar year 20 or taxable year beginning and ending Amended K-1
Pass-through entity / Fiduciary filing: IT 1140 IT 4708 IT 4738 Other
Investor’s / owner’s / beneficiary’s SSN / FEIN Entity FEIN NAICS code
Investor’s / owner’s / beneficiary’s name and address Entity name and address Entity type

Foreign State Code Country Code Foreign State Code Country Code
Ownership % Beginning Ending Apportionment Ratio Within Ohio Total Everywhere
Profit-sharing ........... % % Property ............................ /
Loss-sharing ............ % % Payroll............................... /
Ownership of capital % % Sales................................. /
Beneficiary’s income distribution % (trust/estates only) % Total apportionment ratio ......................
Part II - Investor’s / Owner’s / Beneficiary’s Ohio Depreciation Adjustments
Total Ohio
1a. Current year IRC §168(k) bonus depreciation & §179 expense (fraction used __/__) .................... 1a.
b. Total deduction of prior year IRC §168(k) bonus depreciation & §179 expense Ohio add-backs ... 1b.
Prior year Ohio add-backs and related year deduction
Year and add- 20 / 20 / 20 / 20 / 20 / 20 /
back fraction
Add-back
amount
Related
deduction
Part III - Investor’s / Owner’s / Beneficiary’s Share of Ohio Income Total Ohio
2a. Pass-through entity / electing pass-through entity / trust & estate income .......................................2a.
b. Guaranteed payments or compensation (20% or greater investors only) ...........................................b.
c. Net Ohio depreciation adjustment ....................................................................................................... c.
d. Total taxable income (sum of 2a through 2c for each column) ............................................................d.
Part IV - Investor’s / Owner’s / Beneficiary’s Share of Ohio Tax Credits
3. Direct pass-through entity credit (Ohio tax paid by this entity after nonrefundable business credits and refunds) .................... 3.
3a. Total amount to be added back from direct tax paid on an IT 4738 (Line 1 of the EPTE Add-back Schedule) ........................ 3a.
3b. Total amount to be added back from direct entity tax paid to other states (Line 1 of the EPTE Add-back Schedule) ............. 3b.
4. Indirect pass-through entity credits or withholding (attach IT K-1/W2/1099) .............................................................................. 4.

Include the FEIN for any indirect pass-through entities
4a. Total amount to be added back from indirect tax paid on an IT 4738 (Line 2 of the EPTE Add-back Schedule) ..................... 4a.
4b. Total amount to be added back from indirect entity tax paid to other states (Line 2 of the EPTE Add-back Schedule) ........... 4b.
5. Refundable job creation credit & job retention credit (include certificates) - % of credit claimed % ............................ 5.
6. Refundable Ohio historic preservation credit (include certificates) - % of credit claimed % ........................................ 6.
7. Venture capital credit (include certificates) .................................................................................................................................7.
8. Motion picture & Broadway theatrical production credit (include certificates) - % of credit claimed % ....................... 8.
9. Film and theater capital improvements credit (include certificates) - % of credit claimed % ....................................... 9.
10. Nonrefundable business credits (include certificates and list specific credits in Part V below) ................................................ 10.

- 2 -

Enlarge image

                             Ohio IT K-1 EPTE Add-back Schedule

                                                                                                                    10211411
Attach this schedule to the Ohio IT K-1 to report the tax paid by this entity or by an electing pass-through entity directly or indirectly owned 
by this entity on the Ohio IT 4738, Electing Pass-Through Entity Income Tax Return and/or on another states entity income tax return. In-
clude the electing pass-through entity tax paid (IT 4738 payments submitted) and income tax paid to other states in this schedule if it was 
included as a specified income tax payment and reflected in the partner’s or shareholder’s distributive or pro-rata share of non-separately 
stated income or loss reported on IRS Schedule K-1 or a similar form pursuant to IRS Notice 2020-75 or any similar guidance issued by 
the Internal Revenue Service.
An individual taxpayer is required to add back their proportionate share of IT 4738 and other states entity taxes paid on the IT 1040, Ohio 
Schedule of Adjustments, if not included in federal or Ohio adjusted gross income. A trust or estate is required to add back its propor      -
tionate share of IT 4738 and other states entity taxes paid on the IT 1041, Schedule II, if not included in federal or Ohio taxable income. 
Reporting this information to your partners or shareholders will assist in the proper determination of the add-back.
See R.C. 5747.01(A)(36), (A)(41), (S)(15), and (S)(16).

Line 1: Ohio IT 4738 and other states specified income tax payments reported by this entity for federal income tax purposes:

FEIN:                                                  Direct IT 4738 Tax Paid: 
                                                                           Enter on line 3a of the Ohio IT K-1

                             Direct Tax Paid to Other States:
                                                                           Enter on line 3b of the Ohio IT K-1

Line 2: Ohio IT 4738 and other states specified income tax payments reported by an entity directly or indirectly owned by this entity for 
federal income tax purposes:

FEIN:                                                  Indirect Tax Paid: 

                             Indirect Tax Paid to Other States:

FEIN:                                                  Indirect Tax Paid:

                             Indirect Tax Paid to Other States:

FEIN:                                                  Indirect Tax Paid:

                             Indirect Tax Paid to Other States:

FEIN:                                                  Indirect Tax Paid:

                             Indirect Tax Paid to Other States:

FEIN:                                                  Indirect Tax Paid:

                             Indirect Tax Paid to Other States:

                             Total Indirect IT 4738 Tax Paid: 
                                                                           Enter on line 4a of the Ohio IT K-1

                             Total Indirect Tax Paid to Other States:
                                                                           Enter on line 4b of the Ohio IT K-1
Line 3: Ohio IT 4738 specified income tax payments reported by this entity for federal income tax purposes:

                             Total IT 4738 Tax Paid:

Line 4: Other states specified income tax payments reported by this entity or an entity directly or indirectly owned by this entity for feder-
al income tax purposes:

                             Total Tax Paid to Other States:
                                                       2

- 3 -

Enlarge image

Preparers completing the IT K-1: use the instructions below.
Investors receiving an IT K-1: use the instructions beginning on page 6.
Instructions for Completing the IT K-1
A PTE, EPTE, or fiduciary should issue the IT K-1 to each investor, owner, or beneficiary that receives income,
adjustments, and/or credits.

Use the IT K-1 to report the proportionate or distribu- or Schedule X of the IT 1041.
tive share of income, adjustments, and/or credits for
any investor, owner, or beneficiary. If the PTE, EPTE, or fiduciary is not filing an Ohio
return, use the worksheet below to calculate Ohio
Provide a copy to each investor, owner, or beneficia- property, payroll and sales and the Ohio apportion-
ry and include copies of each IT K-1 when filing the ment ratio. Use Ohio property and payroll, each
IT 1140, IT 4708, IT 4738, or IT 1041. The IT K-1 can be weighted at 20%, and Ohio sales, weighted at 60%,
issued for any tax year, even when the PTE, EPTE, or versus property, payroll, and sales everywhere. If any
fiduciary is not required to file a return. factor’s “total everywhere” is zero, the weights of the
remaining factors must be proportionately increased
See tax.ohio.gov to obtain a copy of the form and for so that the total remains 100%. Report the appor-
FAQs (in the “Pass-Through Entities - OH IT K-1” topic). tionment ratio to six (6) decimal places. For detailed
Part I – Investor / Owner / Beneficiary instructions on calculating the Ohio apportionment
and Entity Information ratio, see the instructions for the IT 4708, IT 4738, IT
1140, or IT 1041.
Enter the calendar year or a fiscal year period used
on the entity’s federal return. Important: If the PTE/EPTE is an investor/owner in
another PTE(s), it must combine its property, payroll
Check the box to indicate which Ohio return the PTE, and sales amounts with the amounts reported on
EPTE, or trust is filing. If the PTE, EPTE, or trust does any IT K-1 it receives.
not file the IT 1140, IT 4738, or IT 4708, check “Other.”
Additionally, check the box to indicate an amended See R.C. 5747.21, 5747.231, and 5733.05(B)(2).
IT K-1, if applicable. Part II – Investor’s / Owner’s / Beneficiary’s
Investor / Beneficiary Information Depreciation Adjustments
Use the same investor/owner/beneficiary information Line 1a - Current Year 168(k) and 179 Depreciation
reported on the federal K-1. Enter the full SSN or FEIN Expense Ohio Add-Back
on the copy of the IT K-1 provided to the Department. Enter the add-back fraction that was checked on the
Ownership % Ohio return.
PTEs/EPTEs: Enter the same investor/owner owner- Total Column: Enter the investor’s/owner’s/benefi-
ship information reported on the federal K-1 for the ciary’s proportionate or distributive share of the cur-
tax year. rent year 168(k) and 179 depreciation expense add-
back reported on:
Fiduciaries: Enter the percentage of income distrib- ● IT 1140 - Schedule II, (A) or (B);
uted to the beneficiary during the tax year. ● IT 4738 - Schedule II;
● IT 4708 - Schedule II; OR
Entity Information ● IT 1041 - Schedule II; Note: For taxable years
Use the same entity information reported on the fed- ending on or after October 3, 2023, do not
eral K-1. Enter the full FEIN on the copy of the IT K-1 enter any amount on line 1a for the IT 1041.
provided to the Department. Ohio Column: Multiply the amount in the “Total” col-
Entity type: Enter the entity type reported on the IT umn by the apportionment ratio on the IT K-1.
1140, IT 4708, or IT 4738. If the PTE, EPTE, or fiduciary See R.C. 5733.40(A)(5) and 5747.01(A)(18).
does not file an Ohio return, enter one of the follow-
ing: S-corporation, limited liability company, part- Line 1b – Total Deduction of Prior Year 168(k) and
nership, trust, or other. 179 Depreciation Expense Ohio Add-Backs
Apportionment Ratio Complete the worksheet below line 1b to calculate
these amounts. Only report prior-year deprecia-
If the PTE, EPTE, or fiduciary is filing an Ohio return, tion add-backs for years that (1) the person was
enter the apportionment information from Schedule an investor, owner, or beneficiary, and (2) the PTE,
IV of the IT 4708 or IT 4738, Schedule III of the IT 1140 EPTE or fiduciary filed an Ohio return.
3

- 4 -

Enlarge image

Example: ABC LLC has operated in Ohio for 10 years. It Ohio Column: Multiply the amount of business income
filed an Ohio PTE/EPTE return and reported deprecia- from the “Total” column by the apportionment ratio
tion add-backs in each year. Joe has been an investor/ on the IT K-1 and/or enter the distributive share of any
owner in ABC LLC for 2 years. When completing the non-apportioned amounts allocated to Ohio.
worksheet on Joe’s IT K-1, ABC LLC will only include
depreciation add-back amounts for the prior year. It See R.C. 5733.40(A), 5747.08(D) and 5747.40 through
will not include depreciation add-back amounts for 5747.43.
years prior to Joe becoming an investor/owner. Line 2b - Guaranteed Payments and/or Compensa-
Add-back amount: Enter the investor’s/owner’s/ben- tion (20% or Greater Investors Only)
eficiary’s proportionate or distributive share of the Total Column: If, at any time during the tax year, the
add-back for the year entered at the top of the col- investor held at least a 20% interest in the profits or
umn. capital of the entity, enter total guaranteed payments
Related deduction: Using the chart below, multiply (reported in box 4 of a federal K-1) or compensation
the add-back amount by the appropriate deduction (reported in box 1 of a W-2) paid to the investor.
fraction. Important: Enter these amounts even if the inves-
tor is a resident of Indiana, Kentucky, West Virginia,
Add-back fraction Deduction fraction
Michigan or Pennsylvania.
5/6 1/5
2/3 1/2 Ohio Column: Multiply the amount in the “Total” col-
umn by the apportionment ratio on the IT K-1.
6/6 1/6
See R.C. 5733.40(A)(7).
Total Column: Add all the “related deduction” Line 2c - Net Depreciation Adjustment
amounts from the prior-year worksheet.
For each column, line 1a minus line 1b.
Ohio Column: Multiply the amount in the “Total”
column by the apportionment ratio on the IT K-1. Line 2d – Total Taxable Income
See R.C. 5733.40(A)(5) and 5747.01(A)(18). For each column, enter the sum of lines 2a through 2c.
Part III - Investor’s / Owner’s / Beneficiary’s Part IV – Investor’s / Owner’s / Beneficiary’s
Ohio Income Share of Tax Credits
Line 2a - PTE / EPTE / Trust & Estate Income Line 3 – Direct PTE Credit (tax paid by this entity
after any refunds)
Total Column: Enter the investor’s/beneficiary’s
proportionate or distributive share of the income Enter the investor’s/owner’s/beneficiary’s proportion-
reported on the Ohio return as follows: ate or distributive share of the tax paid and not other-
wise refunded to the PTE:
● IT 4708 – The “income to be allocated or appor-
tioned” from Schedule I, excluding Internal ● IT 4708 – “Tax liability after nonrefundable
Revenue Code 168(k) and 179 depreciation business credits” from Schedule I;
expense adjustments, and guaranteed pay- ● IT 4738 – “Tax liability” from Schedule I;
ments and compensation reported on Sched- ● IT 1140 – “Tax Liability from line 20, columns A
ules II and III. and B or line 30” from Schedule I.
● IT 1140 (PTEs only) – The “sum of distributive
shares” plus any “related member” adjust- Line 3a - Total Amount to be Added Back from
ments from Schedule II. Direct Tax Paid on an IT 4738
● IT 4738 – The “net apportionable business Enter the total direct IT 4738 tax paid amount reported
income” from Schedule I, excluding Internal on line 1 of the Ohio IT K-1 EPTE Add-back Schedule.
Revenue Code 168(k) and 179 depreciation
expense adjustments, and guaranteed pay- Line 3b - Total Amount to be Added Back from
ments and compensation reported on Sched- Direct Entity Income Tax Paid to Other States
ules II and III.
● IT 1140 (Trusts only) – The “sum of all distribu- Enter the total direct tax paid to other states
tions” from Schedule IV. amount reported on line 1 of the Ohio IT K-1 EPTE
Add-back Schedule.
For the specific lines related to these amounts, see the
IT 4708, IT 4738, or IT 1140 for the applicable tax year.

- 5 -

Enlarge image

Line 4 – Total Indirect PTE Credit for PTE Taxes              Lines 5-9 – Refundable Business Credits
Paid
                                                              Each investor or beneficiary is entitled to its propor-
Enter  the  investors/owner’s/beneficiary’s  propor-          tionate  or  distributive  share  of  direct  and  indirect 
tionate or distributive share of taxes paid by another        refundable business credits from the PTE, EPTE, or 
PTE/EPTE on behalf of this PTE/EPTE/fiduciary entity.         fiduciary. The credits are not available to an inves-
Enter the FEIN  of each PTE tier to the PTE that paid the     tor or beneficiary if the PTE, EPTE, or fiduciary claims 
tax (attach a schedule or flowchart, if necessary).           the credit when calculating its Ohio income tax. Pro-
                                                              vide each investor or beneficiary with a copy of the 
Also enter any tax withheld on a W-2 and/or 1099.             credit certificate.
Provide  each  investor,  owner,  or  beneficiary  with 
a  copy  of  the  IT  K-1,  W-2,  and/or  1099  form.  Enter  Line 10 – Nonrefundable Business Credits
the FEIN for each PTE/EPTE that withheld tax in the 
space provided. Note: Exclude PTE credit amounts              Each investor, owner, or beneficiary is entitled to its 
included as a direct PTE credit amount on line 3.             proportionate or distributive share of direct and indi-
                                                              rect  nonrefundable  business  credits  from  the  PTE, 
Line 4a - Total Amount to be Added Back from                  EPTE, or fiduciary. Provide each investor, owner, or 
Indirect Tax Paid on an IT 4738                               beneficiary with a copy of the credit certificate.
Enter the total from line 2, total indirect IT 4738           Part V - Supplemental Information
tax paid of the Ohio IT K-1 EPTE Add-back Sched-
ule, “Ohio IT 4738 specified income tax payments              Use this section to substantiate any applicable incon-
reported by an entity directly or indirectly owned by         sistencies or discrepancies on this form as compared 
this entity for federal income tax purposes” section,         to  federal  Schedule  K-1.  Report  any  Ohio  financial 
to the extent not included in federal or Ohio adjust-         institutions  tax  (FIT)  credit  (for  tax  years  2019  and 
ed gross income or in federal taxable income (trusts/         prior).
estates).                                                     The Ohio IT K-1 is issued by a PTE, EPTE, or fiduciary 
Line 4b - Total Amount to be Added Back from                  to its investors, owners,or beneficiaries (individuals, 
Indirect Entity Income Tax Paid to Other States               trusts, estates, PTEs, or EPTEs). It contains the inves-
                                                              tor’s, owner’s, or beneficiary’s distributive share of 
Enter the total from line 2, total indirect tax paid to       income, adjustments, and/or credits.
other states, of the Ohio IT K-1 EPTE Add-back Sched-
ule, “other states entity income tax reported by an           The IT K-1 is commonly used by:
entity directly or indirectly owned by this entity for        ●      Individuals filing an IT 1040 and claiming the 
federal income tax purposes” section, to the extent                  nonresident  credit  (using  form  IT  NRC),  or 
not included in federal or Ohio adjusted gross income                refundable  /  nonrefundable  business  credits 
or in federal taxable income (trusts/estates).                       (including  the  pass-through  entity  credit)  on 
                                                                     the Ohio Schedule of Credits;
                                                              ●      PTEs  and  fiduciaries  claiming  refundable  / 
                                                                     nonrefundable business credits on the IT 4708 
                                                                     and/or IT 1041.

                            Ohio Apportionment Ratio Worksheet

                                                             5

- 6 -

Enlarge image

                          IT K-1 Investor / Owner / Beneficiary Instructions

         For use by a recipient of an IT K-1 when completing the IT 1040, IT 1041, IT 4738, IT 4708, and/or IT 1140.

Investors claiming any of the above credits should        Note (trusts only): If a trust retains 100% of its 
include a copy of the IT K-1 when filing their return.    earnings, then this amount  should  be  reported  
Part I – Investor / Owner / Beneficiary and Entity        on  its  IT  1041.  However,  if  a  trust distributes  
Information                                               100%  of  its  earnings,  then  this amount  should  be 
                                                          reported to its beneficiaries on an IT K-1. If a trust 
Tax year: If the PTE, EPTE, or fiduciary completing       retains only a portion of its earnings, the trust will 
the IT K-1 files on a calendar year basis, the investor/  split this amount between its IT 1041 and the IT K-1s 
owner should use the IT K-1 for the same calendar         it issues to its beneficiaries.
year. If the PTE, EPTE, or fiduciary files on a fiscal 
year basis, the investor should use the IT K-1 for the    Exception:  If  an  investor/owner  owns  less  than  
return year that includes the fiscal year’s ending        5%  of  this  PTE,  the investor is not required to add 
date.                                                     back this amount.
Entity FEIN: Individuals must report the entity’s         Line 1b – Deduction of Prior-Year Depreciation 
FEIN on:                                                  Add-Backs
●     Form IT NRC, Section II; AND/OR
●     Ohio Schedule of Business Income, part 4.           If the IT K-1 reports an amount on this line:

PTEs and fiduciaries are not required to report this      Individuals: Generally there will be a deduction of 
number when completing the IT 4738, IT 4708, IT           prior year IRC 168(k) and 179 depreciation expense 
1140, or the IT 1041.                                     add-back on the Ohio Schedule of Adjustments, 
                                                          provided the individual made the add-back on their 
Apportionment %: The investor/owner/beneficiary           own return. 
must include these amounts in the “Within Ohio” 
portion and the “Total Everywhere” portion of the         ●    IT 1040, Schedule of Adjustments
property, payroll, and sales factor calculations on:      Note: Pursuant to R.C. 5747.01(A)(18), the indi-
●     Form IT NRC, Section III, Part A;                   vidual’s add-back is not transferable to the entity; 
●     Form IT NRCE Section III, Part A;                   thus, the Department will disallow any attempt by 
●     IT 4738, Schedule IV;                               the entity to report a deduction based on the indi-
●     IT 4708, Schedule IV;                               vidual’s IT 1040 add-back.
●     IT 1140, Schedule III; OR                           PTEs, EPTEs, and fiduciaries: PTEs and fiduciaries 
●     IT 1041 Schedule X.                                 should add the total amount to the applicable line 
Note: If the PTE, EPTE, or fiduciary has received         if the corresponding add-backs were made on the 
multiple IT K-1s, it must aggregate the apportion-        prior years’ returns:
ment information from each IT K-1 when completing         ●    IT 4708, Schedule III;
the IT 4738, IT 4708, IT 1140, and/or IT 1041.            ●    IT 4738, Schedule III;
Note: Certain individuals may not be required to          ●    IT 1140, Schedule II, columns A and/or B; OR
complete Form IT NRC, Section III. See the instruc-       ●    IT 1041, Schedule II.
tions for the IT NRC.                                     Note: Add-back  and  deduction  adjustments  are  
Part II - Investor’s / Owner’s / Beneficiary’s Ohio       reported  on separate lines on the IT 1040, IT 4738, 
         Depreciation Adjustments                         IT 4708, IT 1140 and IT 1041. Do not net these 
                                                          amounts.
Line 1a – Current Year Depreciation Add-Back
                                                          Part III - Investor’s / Owner’s / Beneficiary’s 
If the IT K-1 reports an amount on this line:                                Ohio Income
Individuals: Generally there will be an IRC 168(k)        Line 2a –PTE / EPTE / Trust & Estate Income
and 179 depreciation expense add-back on the Ohio 
Schedule of Adjustments.                                  This is the total and Ohio portion of this PTE’s, 
                                                          EPTE’s, or fiduciary’s income.
PTEs, EPTEs, and fiduciaries: PTEs and fiduciaries 
should add the total amount to Schedule II of the IT      Individuals: Add the Ohio portion of this line to the 
4738, IT 4708, IT 1140, and/or IT 1041. For taxable       Ohio portion of line 2b and report the total on the 
years ending on or after October 3, 2023, the depre-      IT NRC in Section II, Column C, “Ohio Apportioned 
ciation add-back is no longer required on the IT 1041.    Income”.

                                                         6

- 7 -

Enlarge image

PTEs: Do not report these amounts when complet- credit). These credits can only be claimed on the IT
ing the IT 4708 or IT 1140. 1040, IT 4708, and IT 1041; they cannot be claimed on
the IT 4738 or IT 1140. Add lines 3 and 4 together and
EPTEs: Do not report these amounts when complet- report the total on the “pass-through entity credit”
ing the IT 4738. line of one of the following:
Trusts: Report the total portion of this line on Sched- ● Individuals: IT 1040, Ohio Schedule of Credits;
ule VII of the IT 1041. Do not report the Ohio por- ● PTEs: IT 4708, Schedule V; OR
tion of this line when completing the IT 1041. ● Trusts: IT 1041, Schedule XII.
Estates: Report the total portion of this line on Note: A PTE or trust can only claim these credits to
the IT NRCE in Section II, column A and the Ohio the extent it also reports any income reflected on
portion in column C. the IT K-1 on its return. If the income is reported by
Line 2b – Guaranteed Payments / Compensation an investor or a beneficiary, these credit amounts
should be reported as an “indirect” credit on the IT
If an investor/owner directly owns at least 20% of K-1 issued to them.
this entity, this line is the total and Ohio portion
of any guaranteed payments or compensation Lines 3a and 4a - Total Amount to be Added Back
paid by this entity. from Tax Paid on an IT 4738
Individuals: Add the Ohio portion of this line to the Ohio Lines 3a and 4a are the owner’s/investor’s/ben-
portion of line 2a and report the total on the IT NRC in eficiary’s proportionate share of IT 4738 tax paid by
Section II, Column C, “Ohio Apportioned Income”. another entity that was included on the entity’s IRS
return as a specified income tax payment for the tax-
PTEs, EPTEs, and trusts: The PTE, EPTE, or trust able year. An individual taxpayer is required to add
should add the total amount as applicable: back their proportionate share of IT 4738 tax paid on
the IT 1040 if not included in federal or Ohio adjust-
● IT 4708, Schedule II; ed gross income. A trust or estate is required to add
● IT 4738, Schedule II; OR back its proportionate share of IT 4738 tax paid on
● IT 1140, Schedule II. the IT 1041 if not included in federal or Ohio taxable
Trusts and estates are not required to report this income. Add lines 3a and 4a together and report the
number when completing the IT 1041. total on one of the following:
Note: If an investor/owner directly or indirectly owns
● Individuals: IT 1040, Ohio Schedule of Adjust-
at least 20% of this entity, it is required to report any
ments;
guaranteed payment or compensation paid by this
entity, even if an amount is not reported on this line. ● Trusts and Estates: IT 1041, Schedule II.

Line 2c – Net Ohio Depreciation Adjustment (Indi- See R.C. 5747.01(A)(36) and 5747.01(S)(15).
vidual Investors and Estates ONLY)
Lines 3b and 4b - Total Amount to be Added Back
This is generally line 1a minus line 1b. An individual from Entity Income Tax Paid to Other States
should report the total on the IT NRC in Section II,
Line 3b and 4b are the owner’s/investor’s/ben-
Column B, Ohio Depreciation Adjustment. An estate
eficiary’s proportionate share of other states entity
should report the total on the IT NRCE in Section II,
income tax paid by another entity that was included
Column B, Ohio Depreciation Adjustment.
on the entity’s IRS return as a specified income tax
You cannot use this amount if you did not payment for the taxable year. An individual taxpayer
make each of the add-backs shown in the is required to add back their proportionate share of
chart below line 1b. See the instructions other states entity income tax paid on the IT 1040
for the IT NRC or IT NRCE. if not included in federal or Ohio adjusted gross
income. A trust or estate is required to add back its
Part IV - Investor’s / Owner’s / Beneficiary’s Ohio proportionate share of other states entity income tax
Tax Credits paid on the IT 1041 if not included in federal or Ohio
taxable income. Add lines 3b and 4b together and
Lines 3 and 4 – Direct / Indirect Pass-Through
report the total on one of the following:
Entity Credits
● Individuals: IT 1040, Ohio Schedule of Adjust-
Line 3 is the portion of income tax paid, after nonre-
ments;
fundable credits and refunds, by this entity on its inves-
● Trusts and Estates: IT 1041, Schedule II.
tor’s behalf (the “direct pass-through entity” credit).
Line 4 is the portion of tax paid by another entity on See R.C. 5747.01(A)(41) and 5747.01(S)(16).
this entity’s behalf (the “indirect pass-through entity”
7

- 8 -

Enlarge image

Lines 5-9 – Refundable Business Credits                    These credits cannot be claimed on an IT 4738 or IT 
                                                           1140.
Enter the total proportionate and distributive share 
of any refundable business credits granted to the          Line 10 – Nonrefundable Business Credits
entity by the Ohio Department of Development 
(ODOD). Include a copy of the ODOD certificate and         This is the portion of any nonrefundable business 
this IT K-1 when filing the return. Refundable busi-       credits granted to the entity. The specific credits will 
ness credits include:                                      be listed in the space provided.
● Job creation and job retention tax credits;              Individuals: Report these amounts on the corre-
● Ohio historic preservation tax credit;                   sponding lines of the “Nonrefundable Credits” sec-
● Ohio venture capital credit;                             tion of the Ohio Schedule of Credits.
● Motion picture and Broadway theatrical pro-              PTEs and fiduciaries: To the extent the PTE or fidu-
  duction credit; AND                                      ciary reports the income from this IT K-1, it can also 
● Film and theater capital improvements credit.            report these credits on the corresponding lines of:
Individuals: Report these credits on the correspond-       ●    IT 4708, Schedule I; OR
ing lines of the “Refundable Credits” section of the       ●    IT 1041, Schedule I.
Ohio Schedule of Credits.                                  These amounts cannot be claimed on an IT 4738 or 
PTEs and fiduciaries: To the extent the PTE or fidu-       IT 1140.
ciary reports the income from this IT K-1, it can also              Part V - Supplemental Information
report these credits on the corresponding lines of:
                                                           This section contains any additional information 
● IT 4708, Schedule V; OR                                  or instructions that the PTE, EPTE, or fiduciary who 
● IT 1041, Schedule XII.                                   completed the IT K-1 wants to convey to the inves-
                                                           tor, owner, or beneficiary.

                               EPTE Add-Back Schedule

Attach this schedule to the Ohio IT K-1 to report the      Line 1 - Direct IT 4738 and Other States Entity Tax 
tax paid by this entity or by an electing pass-through     Paid
entity directly or indirectly owned by this entity on the 
                                                           Enter the FEIN of this entity and the investor’s/own-
Ohio  IT  4738,  Electing  Pass-Through  Entity  Income 
                                                           er’s/beneficiary’s proportionate share of IT 4738 and 
Tax Return and/or another states entity income tax 
                                                           other states entity payments included as specified in-
return. Include the electing pass-through entity tax 
                                                           come tax payments on the IRS return by this entity 
paid (IT 4738 payments submitted) and income tax 
                                                           if the payments are not included in the partner’s or 
paid to other states in this schedule if it was included 
                                                           shareholder’s federal or Ohio adjusted gross income 
as a specified income tax payment and reflected in 
                                                           or in federal taxable income (trusts/estates).
the partner’s or shareholder’s distributive or pro-rata 
share of non-separately stated income or loss report-      Line 2 - Indirect IT 4738 and Other States Entity Tax 
ed on IRS Schedule K-1 or a similar form pursuant to       Paid
IRS Notice 2020-75 or any similar guidance issued by 
the Internal Revenue Service. An individual taxpayer       Enter the FEIN and the investor’s/owner’s/beneficiary’s 
is required to add back their proportionate share of IT    proportionate share of IT 4738 and other states entity 
4738 and other state entity taxes paid on the IT 1040,     payments included as specified income tax payments 
Ohio Schedule of Adjustments, if not included in fed-      on the IRS return(s) by each entity directly or indirectly 
eral or Ohio adjusted gross income. A trust or estate      owned by this entity if the payments are not included 
is required to add back its proportionate share of IT      in the partner’s or shareholder’s federal or Ohio adjust-
4738 and other state entity taxes paid on the IT 1041,     ed gross income or in federal taxable income (trusts/
Schedule II, if not included in federal or Ohio taxable    estates).

income. Reporting this information to your partners        Line 3 - Total IT 4738 Tax Paid
or shareholders will assist in the proper determina-
tion of the add-back.                                      Enter the total amount of IT 4738 payments included 
                                                           as specified income tax payments  on the IRS return 
See R.C. 5747.01(A)(36), (A)(41), (S)(15), and (S)(16).    by  this entity and/or by an entity directly or indirectly 

                                                          8

- 9 -

Enlarge image

owned by this entity reported as direct tax paid on  the IRS return by this entity and/or by an entity direct-
line 1 and total indirect tax paid on line 2.              ly or indirectly owned by this entity reported as direct 
                                                           tax paid to other states on line 1 and total indirect tax 
Line 4 - Total Tax Paid to Other States
                                                           paid to other states on line 2.
Enter  the  total  amount  of  other  states  entity  pay-
ments included as specified income tax payments  on 

                                                          9

PDF file checksum: 3821221751

(Plugin #1/10.13/13.0)