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Confused about the Illinois K-1T form

My mother passed and left a traditional IRA in a trust in her and my father's name.  My siblings and I have started taking yearly distributions.  The trust and my mother lived in Virginia; I am in Illinois.  

 

I received a K-1 to file with my federal return, but the fiduciary claims I am not required to file the mandatory Illinois K-1T since my mother was a resident of Virginia when she passed and will not issue the K-1T.

 

Is he correct or should I attempt to complete the K-1T  on my own.

 

 

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3 Replies
AmyC
Employee Tax Expert

Confused about the Illinois K-1T form

  1. You are an IL resident so all income is taxed. 
  2. The trust, in VA, has no legal connection to IL and does not report anything to IL.
  3. Since you need all income reported, it works in your favor that IL begins with the federal AGI. The income is included and you don't have to do anything special. Nothing to create or worry about.
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Confused about the Illinois K-1T form

Thank you...language around the K-1T says it must be filed along with the K-1 with my IL tax return.   And the form is soooo very confusing.

 

Thank you again.

Confused about the Illinois K-1T form

Hello,

 

Illinois does not tax distributions from inherited IRAs.  Since my AGI from my federal is my starting point for the state, and the distribution is included, how do I go about removing it from my Illinois state return?  Turbo Tax does not offer guidance on how to do so.

 

 

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