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Do I need to file a state return in Illinois for receiving a form K-1-T when I have lived in another state for last 20 years?

I received a K-1 and K-1-T from an (irrevocable) estate trust that was formed in a different state (Illinois) from where I have lived for last 20 years (Texas).  Am I supposed to file a return (or anything) in Illinois?  I have searched around but everything I have found is either ambiguous or not easily understood.  Ideally, please explain it to me like I am 10 years old.


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Accepted Solutions
DianeW
Expert Alumni

Do I need to file a state return in Illinois for receiving a form K-1-T when I have lived in another state for last 20 years?

TurboTax will walk you through the steps necessary to complete the Illinois nonresident return if necessary.  As you can see, it's all about the amount of income or whether you have state withholding that should be refunded.

If you are a nonresident, you must file Form IL-1040 and IL 2016 Schedule NR if:

  • you earned enough taxable income from Illinois sources to have a tax liability (i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50), or
  • you want a refund of any Illinois Income Tax withheld in error. You must attach a letter of explanation from your employer.

NOTE:  If you are a nonresident and your only income in Illinois is from one or more partnerships, S corporations, or trusts that withheld enough Illinois Income Tax to pay your liability, you are not required to file a Form IL-1040.

Exemption Allowance:   For tax years beginning January 1, 2016, it is $2175 per exemption. If someone else can claim you as a dependent and your Illinois base income is $2175 or less, your exemption allowance is $2175. If income is greater than $2175, your exemption allowance is 0.

Even if you are not required to file Form IL-1040, you must file to get a refund of

  • Illinois Income Tax withheld from your pay,
  • estimated tax payments you made, or
  • withholding on income passed through to you by a partnership, S Corporation, or trust.
  • Use this hyper link for more information:  IL 2016-Schedule NR Instructions

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1 Reply
DianeW
Expert Alumni

Do I need to file a state return in Illinois for receiving a form K-1-T when I have lived in another state for last 20 years?

TurboTax will walk you through the steps necessary to complete the Illinois nonresident return if necessary.  As you can see, it's all about the amount of income or whether you have state withholding that should be refunded.

If you are a nonresident, you must file Form IL-1040 and IL 2016 Schedule NR if:

  • you earned enough taxable income from Illinois sources to have a tax liability (i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50), or
  • you want a refund of any Illinois Income Tax withheld in error. You must attach a letter of explanation from your employer.

NOTE:  If you are a nonresident and your only income in Illinois is from one or more partnerships, S corporations, or trusts that withheld enough Illinois Income Tax to pay your liability, you are not required to file a Form IL-1040.

Exemption Allowance:   For tax years beginning January 1, 2016, it is $2175 per exemption. If someone else can claim you as a dependent and your Illinois base income is $2175 or less, your exemption allowance is $2175. If income is greater than $2175, your exemption allowance is 0.

Even if you are not required to file Form IL-1040, you must file to get a refund of

  • Illinois Income Tax withheld from your pay,
  • estimated tax payments you made, or
  • withholding on income passed through to you by a partnership, S Corporation, or trust.
  • Use this hyper link for more information:  IL 2016-Schedule NR Instructions
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