Nonresident partners
All nonresident partners are subject to composite tax on their share of apportioned distributive shares of partnership adjusted gross income each time the partnership pays or credits any of its nonresident and part-year residents.
Exception codes can be used to indicate a partner may not be subject to tax or may be subject to a reduced tax. Individual nonresidents and part-year residents are taxed at the individual adjusted gross income flat state tax rate, plus any applicable county tax. Corporate partners are taxed at the corporate tax rate.
If the partnership files Schedule PTET with the correct boxes checked, it replaces the need to file a separate composite return.
note
Indiana no longer gives the option for nonresident individuals to opt-out of filing composite returns; it is now required.
