Schedule Composite-COR

Schedule Composite-COR, issued by the Indiana Department of Revenue, is a tax form designed for corporate entities to report and pay Indiana adjusted gross income tax on behalf of their non-resident corporate shareholders or partners. This form is commonly used by partnerships, S corporations, and trusts or estates that distribute income to corporate entities residing outside of Indiana. By filing Schedule Composite-COR, the filing entity ensures compliance with Indiana tax laws by consolidating the tax obligations of all non-resident corporate entities into one report. This process simplifies tax reporting for the non-resident corporations, as they are not required to file separate Indiana tax returns. The form also calculates the pro rata share of income, state tax, pass-through entity tax, and total tax liability for each non-resident corporate entity.

How to File Schedule Composite-COR?

To file Schedule Composite-COR correctly, follow these steps:

1. Prepare the Entity’s Primary Tax Return: Complete the appropriate Indiana tax return for the entity (e.g., Form IT-65 for partnerships or Form IT-41 for trusts/estates). Data from Schedule Composite-COR will be summarized and carried over to these forms.
2. Attach Schedule Composite-COR: Enclose the completed Schedule Composite-COR with the entity’s Form IT-65 or Form IT-41 when filing.
3. Include Additional Sheets, If Necessary: If the number of non-resident corporate shareholders or partners exceeds the available space on the form, use additional copies of Schedule Composite-COR and carry over totals.
4. File Electronically or by Mail: Submit the completed tax return and all attached schedules according to the Indiana Department of Revenue’s filing requirements.

How to Complete Schedule Composite-COR?

Below is a line-by-line guide to accurately filling out Schedule Composite-COR.

Entity Information

1. Entity’s Tax Year: Specify the tax year by entering the beginning and ending dates for 2025 or the fiscal year applicable to the entity.
2. Name of Entity: Provide the full legal name of the entity filing the return (e.g., partnership, S corporation, or trust/estate).
3. Federal Employer Identification Number (FEIN): Enter the nine-digit FEIN associated with the entity.

Part 1 – Reporting Non-Resident Corporate Entities

For each non-resident corporate shareholder, partner, or beneficiary, complete the rows as follows:

1. Column A: Corporate Federal Employer Identification Number
   • Input the FEIN of each non-resident corporate entity receiving income from the filing entity.
   • Ensure the FEIN is accurate and matches any documentation provided to the corporate entity.
2. Column B: Exception Code
   • Enter the applicable exception code for each corporate entity, if available, as per the instructions provided in the form.
   • Leave this column blank if no exception applies.
3. Column C: Adjusted Gross Income Attributed to Indiana
   • Report the corporate entity’s pro rata share of adjusted gross income attributed to Indiana.
   • Use information from IT-20S/IT-65 Schedule IN K-1 (Part 4, Line 9) or IT-41 Schedule IN K-1 (Part 4, Line 9).
4. Column D: Composite State Tax
   • Multiply the amount in Column C by the applicable corporate tax rate.
   • For the tax year 2025, follow the corporate tax rate outlined in the IT-65 instructions.
   • Leave this column blank if the calculated amount is less than zero.
5. Column E: Pass-Through Entity Tax (PTET)
   • Enter the total amount of pass-through entity tax allocated to the non-resident corporate entity.
   • This information should be taken from Schedule PTET.
6. Column F: Total Tax Liability
   • Subtract Column D from Column C, then add Column E. This represents the total tax liability for the corporate entity.
   • If the calculated result is less than zero, leave this column blank.

Subtotal and Totals

1. Line 24E: Subtotal for Column E
   • Add up all the amounts in Column E for each non-resident corporate entity, and enter the subtotal on this line.
2. Line 25E: Carryover from Additional Sheets
   • If additional Schedule Composite-COR sheets were used, calculate the total for Column E from the additional sheets and enter it here.
3. Line 26E: Total Tax
   • Add the subtotal from Line 24E and the carryover total from Line 25E.
   • Enter the final amount on this line and transfer it to the corresponding line on the entity’s primary tax return:
     • Line 6b of Form IT-65
     • Line 2 of Form IT-41, Schedule 1.