Indiana requires pass-through entities to file composite adjusted gross income tax returns on behalf
of all nonresident owners with limited exceptions.
Pass-through entities subject to this requirement include S corporations filing Form IT-20S, partnerships filing Form IT-65, and estates and trusts filing Form IT-41.
Schedule Composite, Entity’s Composite Indiana Adjusted Gross Income Tax Return is used for this purpose, however a pass-through entity does not need to file Schedule Composite if it is including Schedule PTET and has indicated on Schedule PTET that no composite tax is due. In that case, Schedule PTET will be considered the composite return for shareholders, partners, or beneficiaries who otherwise would be required to be reported on Schedule Composite.
A pass-through entity filing a composite return is liable not only for the tax shown on the return. It is also liable for any additional tax, interest, and penalty as a result of a subsequent audit or examination.
For specific instructions, see the main form instructions available at the Indiana DOR website.
IT-65 and IT-20S
To include a nonresident partner or shareholder on Schedule Composite in TaxSlayer Pro, from the IN Main Menu, select:
- Shareholder's/Partner's Information
- Edit Individual K-1 - Select the nonresident partner or shareholder, then click Edit.
- K-1 Member Heading Information Menu
- Include on Schedule Composite - Select YES.
IT-41
To include a nonresident beneficiary on Schedule Composite in TaxSlayer Pro, from the IN Form IT-41 Main Menu select:
- Beneficiary Information - Select the nonresident beneficiary, then click Edit.
- Heading Information
- Include on Schedule Composite-COR - Select YES.
Additional Information: