PKCPAMST
Level 5

In most states, S corporations can either (1) file a composite return and pay state income tax on behalf of the nonresidents shareholders' income, freeing the shareholders from filing a nonresident income tax return; or (2) withhold state income tax on the nonresidents’ K-1 income.

Since the S corporation chose Option (2), your client needs to file Form RI-1040NR and report the RI withholding.

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