Illinois Schedule K-1-T – Beneficiary’s Share of Income (2026)

Last reviewed: 2025-11-07

Use the Illinois Tax Form Calculator Schedule K-1-T: Beneficiary’s Share of Income as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Illinois state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Schedule K-1-T reports a beneficiary’s share of income, deductions, credits, and withholding from an Illinois estate or trust. This schedule ensures proper inclusion of fiduciary income in the beneficiary’s Illinois taxable income and allows the transfer of any credits or payments withheld by the estate or trust to the beneficiary’s Form IL-1040.

When to File Schedule K-1-T

Each Illinois estate or trust must provide a Schedule K-1-T to every beneficiary who receives a distribution or share of income. Beneficiaries attach the received form to their Illinois individual income tax return. If the estate or trust withheld Illinois tax, that amount appears on the K-1-T and may be claimed as a payment credit on the beneficiary’s return.

Completing Schedule K-1-T

1. Enter your share of Illinois-source income reported by the estate or trust.
2. Report any Illinois tax withheld by the fiduciary on your behalf (Line 2).
3. Enter any credits passed through to you (Line 3), such as property tax, education, or economic development credits.
4. Compute Illinois tax on your share of income using the flat rate of 4.95%, then subtract withholding and credits to determine your final balance.

Attach all pages of the original Schedule K-1-T received from the fiduciary and retain copies for your records. If multiple estates or trusts issued K-1-T forms, include a separate summary for each on your return.

How Schedule K-1-T Affects Your Illinois Tax Return

Income from an estate or trust is taxable to Illinois residents and to nonresidents for Illinois-source income. Schedule K-1-T ensures that both the estate/trust and the beneficiary properly account for tax liability. Failing to include K-1-T information may result in disallowed withholding credits or misreported income.

Example

Example: You received a $15,000 Illinois-source distribution from a trust. The trust withheld $743 in Illinois tax (4.95%). You must report the $15,000 as income and may claim the $743 credit toward your total Illinois tax liability on IL-1040. If the trust also passed through $100 in credits, your effective tax on that distribution may be fully satisfied.

Why Schedule K-1-T Is Important

Many beneficiaries overlook this schedule, assuming that the fiduciary pays all required Illinois taxes. In reality, most estate or trust income “flows through” and must be reported on the beneficiary’s return. The attached K-1-T form serves as both proof of tax withheld and the mechanism for credit transfer, preventing double taxation of the same income.

Key Reminders

• Always use the exact figures provided on your official K-1-T — do not estimate.
• If you receive multiple K-1-Ts, add up all income and withholding amounts before entering totals on IL-1040.
• Nonresident beneficiaries must attach Schedule NR to determine the Illinois-source portion of income.
• Ensure the trust or estate EIN on the K-1-T matches your records before filing.

Related Forms and References

• Form IL-1040 – Individual Income Tax Return
• Form IL-1041 – Fiduciary Income Tax Return
• Schedule NR – Nonresident and Part-Year Resident

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Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.