Generating Partnership OH Forms IT-4708 and IT-1140 in ProConnect Tax

Down below we'll go over how to generate generate OH Forms IT-4708 and IT-1140 for a Partnership return.

How to generate the OH Form IT-4708 or IT-1140, or both:

1. From the Input Return tab, go to State & Local ⮕ Other Forms ⮕ OH Passthrough / Composite Rtrn.
2. Under the Ohio Passthrough Entity / Composite Returns section, enter '1' '2' or '3' in the field 1= IT-1140, 2= IT 4708, 3= both (MANDATORY).
3. Go to Partner Information.
4. Select the appropriate Nonresident partner from the tabs along the top of the workspace.
5. Scroll down to the Ohio Information section.
6. Check the box File Composite Return.
   • This box must be checked on at least one of the partner's for any income to flow to Form IT-4708.

ProConnect Tax will automatically calculate IT-1140, Page 2, Column A provided the partnership has nonresident partners on Partner Information, and the box, File Composite Return is not checked in the Ohio Information section. If the File Composite Return box is checked in the Ohio Information section, the income will show on the OH Form IT-4708.

Additional Information:

Per the OH Form IT-1140 instructions:

"Qualifying pass-through entities whose equity investors are limited to nonresident individuals, nonresident estates and nonresident trusts can file either Ohio forms IT 1140 or IT 4708. All other qualifying pass-through entities must file Ohio form IT 1140 and may also choose to file Ohio form IT 4708."

Therefore the partnership can choose which form to file, IT 1140, IT 4708, or both.

Per the OH Form IT-4708 instructions:

"If an investor participates in the filing of this form, then for Ohio form IT 1140 purposes for the taxable year the investor is not a "qualifying investor". So, for that taxable year the pass-through entity is not subject to the withholding tax or the entity tax (Ohio form IT 1140) with respect to the distributive share of income passing through from the pass-through entity to each investor participating in the filing of this form."

This means that if the entity is filing the IT 4708, they do not have to compute tax on the IT 1140. The program will only complete the last page of the IT 1140 that lists the partners.