@rhill-riversidepec No, this is not a TurboTax bug. Yes, the income is pass through however, IL charges a Replacement Tax.
- Replacement Tax, also known as Personal Property Replacement Tax, is a tax on the net income of corporations, subchapter S corporations, partnerships, and trusts. This tax replaces money lost by local governments when their power to impose personal property taxes was taken away. Replacement tax is collected from corporations, subchapter S corporations, partnerships, and trusts by the State of Illinois and paid to local governments.
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Partnerships are subject to replacement tax but do not pay the Illinois income tax. The income tax is paid at the partner's level. Generally, income from a partnership is passed on to the partners. The partners must include this income in their federal adjusted gross income (for individuals) or federal taxable income (for other taxpayers). This is the starting point for Illinois income tax purposes and where the income tax is paid.
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Partnerships, trusts, and S corporations pay 1.5 percent of net income as Replacement Tax.
[Edited 03/01/22|2:04 pm PST]
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