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Why TurboTax for the state S-Corp tells me that corporation has to pay money to Illinois ?

I downloaded state tax forms for S-Corp in IL. It correctly stated S-Corp profit (from the federal filing) and then it says my S-Corp has to pay some money to the state of IL. The problem is that in IL S-Corp do not pay taxes and profit gets passed to shareholder, who then pays all taxes.

 

https://www2.illinois.gov/rev/questionsandanswers/Pages/86.aspx

Is it a software bug for the just released state forms?

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2 Replies

Why TurboTax for the state S-Corp tells me that corporation has to pay money to Illinois ?

I guess, TurboTax is correct. It is a so called "Personal Property Replacement Tax" assessed on S-Corp income at  a flat rate of 1.5%.
So, no income taxes, but sneaky tax on income under another name.

Why TurboTax for the state S-Corp tells me that corporation has to pay money to Illinois ?

Lenny2020 is correct.  look at line 52 on the return.

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