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Illinois Free Printable  for 2021 Illinois Illinois Income Tax Instructional Booklet

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Illinois Income Tax Instructional Booklet
Income Tax Instructions

Illinois Department of Revenue 2020 Form IL-1040 Instructions What’s New for 2020? Protecting Illinois Taxpayers Our enhanced efforts to protect Illinois taxpayers from identity theft and tax fraud have proven to be highly successful. We will continue to combat the criminals attempting to steal your identity to file fraudulent tax returns while making every effort to get your tax refund to you as quickly as possible. Please remember, filing your return electronically and requesting direct deposit is still the fastest way to receive your refund. You can file for free using MyTax Illinois, our online account management program for taxpayers. For more information, go to mytax.illinois.gov or visit our website. Exemption Allowance The personal exemption amount for tax year 2020 is $2,325. Form IL-2210 Due to the federal and state extension to file 2019 returns, quarterly 2020 Estimated Payments can be made in 4 equal installments based upon 90% of the liability for year 2020 or 100% of the liability of year 2019 or 2018 to avoid penalty if timely made. Form IL-1040 Due Date The due date for filing your 2020 Form IL-1040 and paying any tax you owe is April 15, 2021. Income Tax Rate The Illinois income tax rate is 4.95 percent (.0495). Mailing your income tax return If no payment is enclosed, mail your return to: If a payment is enclosed, mail your return to: ILLINOIS DEPARTMENT OF REVENUE ILLINOIS DEPARTMENT OF REVENUE PO BOX 19041 PO BOX 19027 SPRINGFIELD IL 62794-9041 SPRINGFIELD IL 62794-9027 IL-1040 Instructions (R-12/20) Printed by authority of the State of Illinois, web only, 1 Tips To Speed Up The Processing Of Your Return • • • • • File your return electronically! Visit mytax.illinois.gov or see your tax professional. Enter your correct Social Security number (SSN) and name. If you are married, you must include your spouse’s SSN and name. If you received federally taxed Social Security benefits or qualified retirement income, you may be able to subtract it on Line 5. See the Line 5 Instructions for details. Attach a completed Schedule IL-WIT and all withholding forms (W-2s, 1099s, etc.) to support the amount you claim as Illinois Income Tax withheld on Line 25. Enter the correct amount of estimated payments you made, including any overpayment applied from a prior year return. You may verify the amount using the estimated payment inquiry on our website. • • • • • • Include any required attachments (e.g., Schedule M, Schedule ICR, Schedule IL-E/EIC, Schedule CR, federal Form 1040 and Schedules) with your Form IL-1040. Make sure to have any support documentation available if requested. If you are claiming a property tax credit, you must enter the county in which your property is located and the property number on Schedule ICR, Illinois Credits. If you enter an amount you want refunded to you on Line 36, you must check one box on Line 37 to indicate how you would like us to issue your refund. You may select direct deposit, refund debit card, or paper check. Review the entries you made on each line for accuracy and verify your calculations. Sign your return. Table of Contents General Information Frequently Asked Questions and Information 3-5 Who must file an Illinois tax return? 3-4 Who is an Illinois resident? 4 What is Illinois income? 4 How may I file? 4 When must I file? 4 Should I round? 4 Will I owe penalties and interest? What if I cannot pay? 5 When must I file an amended return? 5 What if I have household employees? 5 What if I change my address? 5 What if I am in a civil union? 5 What if I am an injured spouse? 5 What if I participated in a potentially abusive tax avoidance transaction? 5 File a decedent’s return 6 Filing status 6 File household employment tax using Form IL-1040 9 Pay use tax using Form IL-1040 9 - 10 Refund options 14 Payment options 15 Step-by-Step Instructions Allocation Worksheet Information and Assistance 2 4-5 6 - 16 17 18 - 19 tax.illinois.gov General Information Who must file an Illinois tax return? If you were • an Illinois resident, you must file Form IL-1040 if you were required to file a federal income tax return, or you were not required to file a federal income tax return, but your Illinois base income from Line 9 is greater than your Illinois exemption allowance. • an Illinois resident who worked in Iowa, Kentucky, Michigan, or Wisconsin, you must file Form IL-1040 and include as Illinois income any compensation you received from an employer in these states. Compensation paid to Illinois residents working in these states is taxed by Illinois. Based on reciprocal agreements between Illinois and these states, these states do not tax the compensation of Illinois residents. If your employer in any of these states withheld that state’s tax from your compensation, you may file the correct form with that state to claim a refund. You may not use tax withheld by an employer for these states as a credit on your Illinois return. • a retired Illinois resident who filed a federal return, you must file Form IL-1040. However, certain types of retirement income (e.g., pension, Social Security, railroad retirement, governmental deferred compensation) may be subtracted from your Illinois income. For more information, see the instructions for Line 5 and Publication 120, Retirement Income. • a part-year resident, you must file Form IL-1040 and Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax, if you earned income from any source while you were a resident, you earned income from Illinois sources while you were not a resident, or you want a refund of any Illinois Income Tax withheld. • a nonresident, you must file Form IL-1040 and Schedule NR if you earned enough taxable income from Illinois sources to have a tax liability (i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50), or you want a refund of any Illinois Income Tax withheld in error. You must attach a letter of explanation from your employer. If you are a nonresident and your only income in Illinois is from one or more partnerships, S corporations, or trusts that withheld enough Illinois Income Tax to pay your liability, you are not required to file a Form IL-1040. • an Iowa, Kentucky, Michigan, or Wisconsin resident who worked in Illinois, you must file Form IL-1040 and Schedule NR if you received income in Illinois from sources other than wages, salaries, tips, and commissions, or you want a refund of any Illinois Income Tax withheld. If you received wages, salaries, tips, and commissions from Illinois employers, you are not required to pay Illinois Income Tax on this income. This is based on reciprocal agreements between Illinois and these states. The reciprocal agreements do not apply to any other income you might have received, such as Illinois lottery winnings and Illinois unemployment income. • an Illinois resident who was claimed as a dependent on your parents’ or another person’s return, you must file Form IL-1040 if your Illinois base income from Line 9 is greater than $2,325, or you want a refund of Illinois Income Tax withheld from your pay. If your parent reported your interest and dividend income through federal Form 8814, Parents’ Election to Report Child’s Interest and Dividends, do not count that income in determining if you must file your own Form IL-1040. tax.illinois.gov • the surviving spouse or representative of a deceased taxpayer who was required to file in Illinois, you must file any return required of that taxpayer. • a student, you are not exempt from tax nor are there special residency provisions for you. However, income, such as certain scholarships or fellowships, that is not taxable under federal income tax law, is also not taxed by Illinois. • a nonresident alien, you must file Form IL-1040 if your income is taxed under federal income tax law. You must attach a copy of your federal Form 1040NR, U.S. Nonresident Alien Income Tax Return, or federal Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents. 3 General Information Even if you are not required to file Form IL‑1040, you must file to get a refund of • Illinois Income Tax withheld from your pay, • estimated tax payments you made, or • withholding on income passed through to you by a partnership, S Corporation, or trust. Who is an Illinois resident? You are an Illinois resident if you were domiciled in Illinois for the entire tax year. Your domicile is the place where you reside and the place where you intend to return after temporary absences. Temporary absences may include duty in the U.S. Armed Forces, residence in a foreign country, out-of-state residence as a student, or out-of-state residence during the winter or summer. If you filed a joint federal return and one spouse is an Illinois resident while the other spouse is a nonresident or a part-year resident, you may file separate Illinois returns. If you file a joint Illinois return, you will both be taxed as residents. What is Illinois income? Your Illinois income includes the adjusted gross income (AGI) amount figured on your federal return, plus any additional income that must be added to your AGI. Some of your income may be subtracted when figuring your Illinois base income. For more information, see the Step-by-Step Instructions. You should follow the federal law concerning passive activity income and losses. You are not allowed to refigure your federal passive activity losses. Also, federal law will govern the taxation of income from community property sources in the case of spouses who file joint federal returns and who file separate Illinois returns. How may I file? File your individual income tax return electronically by using • MyTax Illinois, available on our website for free, • a tax professional, or • tax preparation software. Almost all taxpayers can file electronically. Visit mytax.illinois.gov or see your tax professional. If you do not wish to file electronically, you may use the paper Form IL-1040. When must I file? Your Illinois filing period is the same as your federal filing period. We will assume that you are filing your Form IL-1040 for calendar year 2020 unless you are filing for a fiscal year and indicate a different filing period in the space provided at the top of the return. The due date for calendar year filers is April 15, 2021. We grant an automatic six-month extension of time to file your return. If you receive a federal extension of more than six months, you are automatically allowed that extension for Illinois. These extensions do not grant you an extension of time to pay any tax you owe. If you determine that you will owe tax, you must use Form IL-505-I, Automatic Extension Payment for Individuals, to pay any tax you owe to avoid penalty and interest on tax not paid by April 15, 2021. Should I round? You must round cents to whole dollars on Form IL-1040 and most schedules, as directed. To round you must • drop amounts under 50 cents and • increase amounts of 50 to 99 cents to the next dollar. For example, $1.49 becomes $1 and $2.50 becomes $3. If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round only the total. Will I owe penalties and interest? 4 You will owe • a late-filing penalty if you do not file a return that we can process by the extended due date. • a late-payment penalty for tax not paid by the original due date of the return. • a late-payment penalty for underpayment of estimated tax if you were required to make estimated tax payments and failed to pay the required amount by the payment due dates. • a bad check penalty if your remittance is not honored by your financial institution. • a cost of collection fee if you do not pay the amount you owe within 30 days of the date printed on any IDOR-2-BILL, Final Notice of Tax Due for Form IL-1040, Individual Income Tax Return, you receive. tax.illinois.gov General Information • • a frivolous return penalty if you file a return that does not contain information necessary to figure the correct tax or shows a substantially incorrect tax, because you are taking a frivolous position or are trying to delay or interfere with collection of the tax. interest on unpaid tax from the day after the original due date of your return through the date you pay the tax. We will bill you for penalties and interest. For more information about penalties and interest, see Publication 103, Penalties and Interest for Illinois Taxes. What if I cannot pay? If you cannot pay the tax you owe but you can complete your return on time, file your return by the due date without the payment. This will prevent a late-filing penalty from being assessed. You will, however, owe a late-payment penalty and interest on any tax you owe after the original due date, even if you have an extension of time to file. You have the option to pay the amount you owe electronically by using our website or by credit card. See the instructions for Line 39. When must I file an amended return? Do not file another Form IL-1040 to make changes to a previously filed Form IL-1040. You must file Form IL-1040-X, Amended Individual Income Tax Return, if • • you discover that you made an error on your Illinois return after it was filed, or your federal return has been adjusted either by the Internal Revenue Service (IRS) or on a federal Form 1040X, Amended U.S. Individual Income Tax Return, you filed; the change affects your Illinois income, additions, subtractions, exemptions, or credits; and the change is final. If the federal change results in a refund, do not file Form IL-1040-X until you receive notification that your change has been accepted by the IRS. For more information, see Form IL-1040-X and Instructions. What if I have household employees? You may use Form IL-1040 to pay your household employees’ Illinois withholding. For more details on how to pay withholding for your employees, see the instructions for Line 20. What if I change my address? If you change your address after you file, visit our website or call us to tell us your new address and the date you moved. What if I am in a civil union? If you are in a civil union, you must file your Illinois return using the same filing status as on your federal return. What if I am an injured spouse? If you are married and you filed a joint federal return with your spouse and you are an injured spouse (e.g., your spouse owes a liability, for which you are not responsible, to a government agency), you may elect to file separate Illinois returns using the “married filing separately” filing status. You may make this election up until the extended due date of your return, and once the election is made, it is irrevocable for the tax year. If you file a joint Illinois return, we may take the entire refund to pay your spouse’s liability. What if I participated in a potentially abusive tax avoidance transaction? tax.illinois.gov If you participated in a reportable transaction, including a “listed transaction,” during this tax year and were required to disclose that to the IRS, you are also required to disclose that information to Illinois. You must send us two copies of the form you used to disclose the transaction to the IRS. You must • attach one copy to your tax return, and • mail a second copy to the Illinois Department of Revenue, P.O. Box 19029, Springfield, Illinois 62794-9029. Employee benefit plans and other subtractions allowed on Form IL-1040, Lines 5 through 7, are not reportable transactions. For more information, contact the IRS or your tax professional. 5 Lines A-D Step 1 Step-by-Step Instructions Personal Information Line A Name, year of birth, Social Security number, and address Print your full name, year of birth (YYYY), Social Security number (SSN), and address. If you are married and filing a joint return, print both names, years of birth, and SSNs as they appear on your federal return. If you are married and filing separate returns, print your full name and SSN and your spouse’s full name and SSN if you have it. Also include the Illinois county you lived in as of 12/31/2020. If you were an Illinois resident during any part of the year but are no longer living in Illinois, enter the county name you lived in while an Illinois resident. If you did not live in Illinois during the tax year, leave the county name blank. If you do not qualify for a SSN and were issued an Individual Taxpayer Identification Number (ITIN) by the IRS, enter your ITIN. Do not redact your SSN as it can cause processing delays. Filing a decedent’s return When you are filing a joint return as a surviving spouse • print your name and your spouse’s name on the appropriate lines. • write “deceased” and the date of death above your spouse’s name. • sign your name in the area provided for your signature, and write “filing as surviving spouse” in place of the decedent’s signature. If you, as the surviving spouse, are due a refund, the refund will be issued directly to you. You are not required to complete Form IL-1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. When you are filing a return on behalf of a single deceased taxpayer • print the name of the taxpayer on the appropriate line. • write “deceased” and the date of death above the decedent’s name. • write “in care of,” and the executor’s name and address. A personal representative, such as an executor or administrator, must sign and date the return. The representative’s title and telephone number must be provided. If you are filing a return on behalf of a single deceased taxpayer and a refund is due, attach Form IL-1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Line B Filing status In general, you should use the same filing status as on your federal return. However, • if you file a joint federal return and you are an injured spouse (your spouse owes a liability, for which you are not responsible, to a government agency), you should file separate Illinois returns using the “married filing separately” filing status. Do not recalculate any items on your federal return. Instead, you must divide each item of income and deduction shown on your joint federal return between your separate Illinois returns following the Allocation Worksheet on Page 17. You may choose to file separately as an injured spouse only until the extended due date of the return, and once you choose a filing status, the decision is irrevocable for the tax year. • If you choose to file a joint Illinois return, we may take the entire refund to pay your spouse’s liability. if you file a joint federal return and one spouse is a full-year Illinois resident while the other is a part-year resident or a nonresident (e.g., military personnel), you may choose to file “married filing separately.” Do not recalculate any items on your federal return. Instead, you must divide each item of income and deduction shown on your joint federal return between your separate Illinois returns following the Allocation Worksheet on Page 17. If you choose to file a joint Illinois return, you must treat both your spouse and yourself as residents. This election is irrevocable for the tax year. You may be allowed a credit for income tax paid to another state on Schedule CR, Credit for Tax Paid to Other States. For more information, see the Schedule CR Instructions. Line C Dependent status If someone else can claim you, or your spouse if you are married and filing a joint return, as a dependent, check the corresponding box. Line D Resident status If you are filing your return as a nonresident of Illinois, check the Nonresident box. If you are filing your return as a part-year resident of Illinois, check the Part-year resident box. Be sure to complete and attach Schedule NR to your IL-1040. Schedule NR Foreign addresses Enter your • street address on the “Mailing address” line. • apartment number, if applicable. • city, province or state, and postal code on the “City, State, ZIP” lines in that order. Follow the country’s practice for entering the postal code. • country name on the “Foreign Nation” line. Do not abbreviate the country name. 6 tax.illinois.gov Lines 1-9 Step 2 Income Line 1 Adjusted gross income Enter the adjusted gross income from your federal return. If you are not required to file a federal income tax return, use a federal Form 1040 as a worksheet to determine your adjusted gross income. Net operating loss (NOL) If you have a federal NOL this year, you may enter a negative amount on Line 1. However, you must reduce the amount you enter on your 2020 Form IL-1040, Line 1, by any NOL that you carry back to prior years. If you deducted an NOL carryforward on your federal return for this year and some of that NOL remains available to carry forward to next year, the amount on Line 1 should be your federal adjusted gross income calculated without deducting the NOL carryforward, minus the amount of “Modified Taxable Income” on Line 9 of the federal Worksheet for NOL Carryover found in Table 1 of IRS Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. Line 2 Federally tax-exempt income Enter the amount of federally tax-exempt interest and dividend income reported on federal Form 1040, U.S. Individual Income Tax Return, Line 2a. Line 3 Other additions Complete Schedule M if you have any of the following items: • your child’s federally tax-exempt interest and dividend income as reported on federal Form 8814 • a distributive share of additions you received from a partnership, S corporation, trust, or estate • Lloyd’s plan of operation loss, if reported on your behalf on Form IL-1065, and included in your adjusted gross income • earnings distributed from IRC Section 529 college savings and tuition programs and ABLE plans if these earnings are not included in your adjusted gross income, Line 1 • an addition amount calculated on Form IL-4562, Special Depreciation • business expense recapture (nonresidents only) • recapture of deductions for contributions to Illinois college savings plans and ABLE plans transferred to an out-of-state plan • credit received on Schedule 1299-C for student-assistance contributions made as an employer on behalf of your employees • deductions claimed in prior years for college savings plan and ABLE plan contributions if you made a nonqualified withdrawal this tax year • any other amounts that you are required to add to your federal adjusted gross income For more information, see the Schedule M Instructions. Schedule M and any required supporting documents. Your distributive share of federally tax-exempt interest and dividend income received from a partnership, S corporation, trust, or estate is added back on Schedule M, Line 2. Step 3 Base Income Line 5 Social Security benefits and certain retirement plans Enter the amount of federally taxed Social Security and retirement income included in your adjusted gross income on Form IL-1040, Line 1 that you received from • qualified employee benefit plans (including railroad retirement and 401(K) plans) and Individual Retirement Accounts or selfemployed retirement plans reported on federal Form 1040 or 1040-SR, Line 4b and 5b. • Social Security and railroad retirement benefits reported on federal Form 1040 or 1040-SR, Line 6b. • government retirement and government disability plans and group term life insurance premiums paid by a qualified retirement plan reported as wages on your federal Form 1040 or 1040-SR, Line 1. • state or local government deferred compensation plans reported on federal Form 1040 or 1040-SR, Line 1 and 5b. • certain capital gains on employer securities reported on federal Form 1040 or 1040-SR, Line 7. • certain retirement payments made directly to retired partners reported on federal Form 1040 or 1040-SR, Schedule 1, Line 5. Your beneficiary share of payments from certain retirement plans and retirement payments to retired partners reported on Schedule K-1-T, Beneficiary’s Share of Income and Deductions, tax.illinois.gov should not be included on Line 5. For more information, see the Schedule M Instructions. See Publication 120 for detailed information about what retirement income you may subtract. Federal Form 1040 or 1040-SR, Page 1 and Schedule 1, and any W-2 and 1099 forms. If your retirement income is not reported on your federal Form 1040 or 1040-SR, Lines 4b, 5b, or 6b, or shown on your W-2 and 1099 forms, see Publication 120 for a list of any additional required attachments. Line 6 Illinois Income Tax overpayment Enter the total amount of any Illinois Income Tax overpayment (including any amount that was credited to another tax liability) reported as income on your 2020 federal Form 1040 or 1040-SR, Schedule 1, Line 1. Do not include other states’ refunds on this line. Line 7 Other subtractions You may be entitled to subtract other items from your income. See the instructions for Schedule M to see if you are eligible for other subtractions. Schedule M and any required supporting documents. Line 9 Base income This line may not be less than zero. If the result is a negative number, enter “zero.” 7 Lines 10-13 Step 4 Line 10b Exemptions If you (or your spouse if married filing jointly) were 65 or older, check the appropriate box(es). Multiply the number of boxes checked by $1,000 and enter the amount on Line 10b. Line 10 Illinois exemption allowance See Income Exceptions in the box on the right. Line 10c Line 10a If you (or your spouse if married filing jointly) were legally blind, check the appropriate box(es). Multiply the number of boxes checked by $1,000 and enter the amount on Line 10c. See chart to figure your exemption amount for this line. Filing Status Did you check either box on Step 1, Line C? Base income from Line 9 or Schedule NR, Line 46 Exemption Amount enter this amount on Step 4, Line 10a: $2,325 $2,325 Single* No **any amount Single* Yes $2,325 or below Single* Yes $2,326 or greater $0 Married filing jointly No **any amount $4,650 Married filing jointly Yes - only one $2,325 or below $4,650 Married filing jointly Yes - only one $2,326 or greater $2,325 Married filing jointly Yes - both $4,650 or below $4,650 Married filing jointly Yes - both $4,651 or greater $0 Line 10d If you are claiming dependents, complete Schedule IL-E/EIC, and enter the amount from Step 2, Line 1, on Line 10d. Schedule E/EIC. **Income Exceptions If your federal filing status is married filing jointly and your federal AGI is greater than $500,000, you are not entitled to an exemption allowance on Line 10. Enter “zero” on Line 10. If your federal filing status is single, head of household, married filing separately, or widowed and your federal AGI is greater than $250,000, you are not entitled to an exemption allowance on Line 10. Enter “zero” on Line 10. *Single filing status includes Head of Household, Widowed, and Married filing separately. **See Income Exceptions. Step 5 Net Income and Tax Line 11 Illinois residents only – Net income This line may not be less than zero. If the result is a negative number, enter zero “0.” Nonresidents and part-year residents only – Net income Complete Schedule NR. Enter the amount from Schedule NR, Line 51, on Line 11. This line may not be less than zero. If the result is a negative number, enter zero “0.” Be sure to check the box in Step 1, Line D, to identify whether you were a nonresident or a part-year resident of Illinois during 2020. Schedule NR. Line 12 Tax amount Illinois residents: Follow the instructions on the form. Nonresidents and part-year residents only: Enter your tax from Schedule NR, Line 52. Schedule NR. Line 13 Recapture of investment tax credits If you claimed an investment credit in a previous year, and the property considered in the computation of that investment credit was disqualified within 48 months after being placed in service, you must complete Schedule 4255, Recapture of Investment Tax Credits, and enter the recapture amount on this line. Schedule 4255. 8 tax.illinois.gov Lines 15-21 Step 6 Tax After Nonrefundable Credits Income Exceptions If your federal filing status is married filing jointly and your federal AGI is greater than $500,000, you are not entitled to a property tax credit or a K-12 education expense credit. Form IL-1040, Line 15 + Line 16 + Line 17 If your federal filing status is single, head of household, married cannot be greater than Line 14. Line 15 Income tax paid to another state – Illinois residents and part-year residents only If you were taxed by another state on income you received while you were an Illinois resident, you may be entitled to this credit. See the Schedule CR Instructions and Publication 111, Illinois Schedule CR for Individuals, to see if you are eligible to take this credit. Schedule CR, Pages 1 through 3. Line 16 Property tax and K-12 education expense credit filing separately, or widowed and your federal AGI is greater than $250,000, you are not entitled to a property tax credit or a K-12 education expense credit. Schedule ICR and any required supporting documents. Line 17 Credit from Schedule 1299-C You may be entitled to credits from Schedule 1299-C. See the instructions for Schedule 1299-C and Schedule 1299-I to determine if you are eligible for these credits. Schedule 1299-C and any required supporting documents. You may be entitled to credit for property tax and K-12 education expenses you paid. See the instructions for Schedule ICR to see if you are eligible for these credits. Step 7 Other Taxes Line 20 Household employment tax Enter the amount of Illinois Income Tax you withheld from a household employee. See Publication 121, Illinois Income Tax Withholding for Household Employees, for details on how to figure the amount to withhold and report. Do not report household employee withholding here if you have already reported or paid this amount using Form IL-941, Illinois Withholding Income Tax Return. Line 21 Use tax Enter the amount of Illinois Use Tax you owe. Use the Use Tax (UT) Worksheet or Use Tax (UT) Table to determine your use tax. You must make an entry on Line 21 (enter “zero” if you are not paying use tax on Form IL-1040). If you owe more than $600 in use tax ($1,200 for married filing jointly taxpayers), you must file Form ST-44, Illinois Use Tax Return. You cannot change the amount of Illinois Use Tax you enter on Form IL-1040 by filing a Form IL-1040-X. Do not report Illinois Use Tax here if you have already reported or paid this amount using Form ST-44. What is Illinois Use Tax? Illinois Use Tax is a form of sales tax that you, as the purchaser, owe on items that you buy for use in Illinois. If the seller does not collect this tax from you, you must pay the tax to the Illinois Department of Revenue (IDOR). The most common purchases on which the seller does not collect Illinois Use Tax are those made through the internet, from a mail order catalog, or when traveling outside Illinois. tax.illinois.gov When must I pay Illinois Use Tax to IDOR? You must pay Illinois Use Tax to IDOR if • the items you bought are taxable in Illinois, • you used or consumed these items in Illinois, and • when you purchased the items you either did not pay any sales tax to the seller, or paid sales tax at less than Illinois’ Use Tax rates of 6.25 percent for general merchandise and 1 percent for food and drugs. For example, if you purchased • a computer over the internet for use in Illinois and paid no sales tax, you owe 6.25 percent Illinois Use Tax. • jewelry while vacationing in Georgia upon which you paid 4 percent sales tax and which you brought back to Illinois, you will owe Illinois Use Tax on the 2.25 percent difference in tax rates. • cheese by mail order from a company in Wisconsin and paid no sales tax, you owe 1 percent Illinois Use Tax. How do I determine the Illinois Use Tax I owe? To determine the Illinois Use Tax you owe, check your records to see if you were charged tax on internet, mail order, or other out-of-state purchases and use the UT Worksheet to calculate your tax. If your records are incomplete and you had • major purchases, add the actual cost of your major purchases to the estimated cost of any other purchases you made during the year. Enter the total on Lines 1a or 2a of the UT Worksheet to calculate the use tax you owe. • no major purchases, use the UT Table to help you estimate the use tax you owe. Enter the Illinois Use Tax from the UT Worksheet or UT Table on Form IL-1040, Line 21. If we find that you owe additional tax, we may assess the additional tax plus applicable penalties and interest. We conduct routine audits based on information received from third parties, including the U.S. Customs Service and other states. 9 Line 21 Use Tax (UT) Worksheet Complete this worksheet to report and pay your use tax on Form IL-1040. If your annual use tax liability is over $600 ($1,200 if married filing jointly), you must file and pay your use tax with Form ST-44. Do not include any • items for which you paid sales tax in another state (but not in another country) of 6.25% or more on Line 1a and 1% or more on Line 2a. • sales tax you paid in another state, on Line 4, for items not included in Lines 1a or 2a. 1a Enter the total cost of general merchandise you purchased to use in Illinois on which you did not pay the required amount of Illinois Use Tax. 1a 1b 2a Multiply Line 1a by 6.25% (.0625). Round the result to whole dollars. Enter the total cost of qualifying food, non-prescription drugs, and medical appliances you purchased to use in Illinois on which you did not pay the required amount of Illinois Use Tax. 2a 2b Multiply Line 2a by 1% (.01). Round the result to whole dollars. .00 1b .00 2b 3 .00 .00 4 .00 5 .00 .00 3 Add Lines 1b and 2b. This is your use tax on purchases. 4 Enter the amount of sales tax you paid in another state (not in another country) on the items included on Lines 1a and 2a. 5 Subtract Line 4 from Line 3. Enter the result here and on Form IL-1040, Line 21 (if the result is less than zero, enter “zero”). Be sure to keep this worksheet with your income tax records. You must send us this information if we request it. Use Tax (UT) Table If you had no major purchases and you do not have receipts to figure your purchases, use this table to estimate your annual Illinois Use Tax liability. AGI (from Form IL-1040, Line 1) Use Tax $0 - $10,000 $3 $10,001 - $20,000 $8 $20,001 - $30,000 $13 $30,001 - $40,000 $18 $40,001 - $50,000 $23 $50,001 - $75,000 $31 $75,001 - $ 100,000 $44 Above $100,000 10 Multiply AGI by 0.05% (0.0005) tax.illinois.gov Lines 22-29 Line 22 Compassionate Use of Medical Cannabis Program Act and sale of assets by gaming licensee surcharges Compassionate Use of Medical Cannabis Program Act Definitions Organization registrant means a corporation, partnership, trust, limited liability company (LLC), or other organization, that holds either a medical cannabis cultivation center registration issued by the Illinois Department of Agriculture or a medical cannabis dispensary registration issued by the Illinois Department of Financial and Professional Regulation. Transactions subject to the surcharge means sales and exchanges of • capital assets, • depreciable business property, • real property used in the trade or business, and • Section 197 intangibles of an organization registrant. What is the Compassionate Use of Medical Cannabis Program Act surcharge? For each taxable year beginning or ending during the Compassionate Use of Medical Cannabis Program, a surcharge is imposed on all taxpayers on income arising from the transactions subject to the surcharge of an organization registrant under the Compassionate Use of Medical Cannabis Program Act. The amount of the surcharge is equal to the amount of federal income tax liability for the taxable year attributable to the transactions subject to the surcharge. To whom does the surcharge apply? The surcharge is imposed on any taxpayer who incurs a federal income tax liability on the income realized on a “transaction subject to the surcharge,” including individuals and other taxpayers who are not themselves the “organization registrant” that engaged in the transaction. A line has been included on Schedule K-1-P, Partner’s or Shareholder’s Share of Income, Deductions, Credits, and Recapture, and Schedule K-1-T, Beneficiary’s Share of Income and Deductions, to identify the amount of federal income attributable to transactions subject to the surcharge that was passed through to you on federal Schedule K-1. Sale of Assets by Gaming Licensees Definitions Gaming licensee means an organization licensee under the Illinois Horse Racing Act of 1975 and/or an organization gaming licensee under the Illinois Gambling Act. Transactions subject to the surcharge means income arising from sales and exchanges of • capital assets, • depreciable business property, • real property used in the trade or business, and • Section 197 intangibles of a gaming licensee. What is the Sale of Assets by Gaming Licensees surcharge? For each taxable year beginning in 2019 through 2027, the amount of the surcharge is equal to the amount of federal income tax liability attributable to those sales and exchanges. To whom does the Sale of Assets by Gaming Licensees surcharge apply? The surcharge is imposed on any taxpayer who incurs a federal income tax liability on the income realized on a “transaction subject to the surcharge,” including individuals and other taxpayers who are not themselves the “organization licensee” that engaged in the transaction. The surcharge imposed shall not apply if • the organization gaming license, organization license, or racetrack property is transferred as a result of any of the following: • bankruptcy, a receivership, or a debt adjustment initiated by or against the initial licensee or the substantial owners of the initial licensee; • cancellation, revocation, or termination of any such license by the Illinois Gaming Board or the Illinois Racing Board; • a determination by the Illinois Gaming Board that transfer of the license is in the best interests of Illinois gaming; • the death of an owner of the equity interest in a licensee; • the acquisition of a controlling interest in the stock or substantially all of the assets of a publicly traded company; • a transfer by a parent company to a wholly owned subsidiary; or the transfer or sale to or by one person to another person where both persons were initial owners of the license when the license was issued; or • the controlling interest in the organization gaming license, organization license, or racetrack property is transferred in a transaction to lineal descendants in which no gain or loss is recognized or as a result of a transaction in accordance with Section 351 of the Internal Revenue Code in which no gain or loss is recognized; or • live horse racing was not conducted in 2010 at a racetrack located within 3 miles of the Mississippi River under a license issued pursuant to the Illinois Horse Racing Act of 1975. • the transfer of an organization gaming license, organization license, or racetrack property by a person other than the initial licensee to receive the organization gaming license is not subject to a surcharge. A line has been included on Schedule K-1-P, Partner’s or Shareholder’s Share of Income, Deductions, Credits, and Recapture, and Schedule K-1-T, Beneficiary’s Share of Income and Deductions, to identify the amount of federal income attributable to transactions subject to the surcharge that was passed through to you on federal Schedule K-1. • How do I figure the surcharge? If either surcharge applies to you, complete the Surcharge Worksheet. Surcharge Worksheet 1 Enter your federal income tax liability for the taxable year. 2 Enter your federal income tax liability for the taxable year computed as if transactions subject to the 1 _________________ surcharge made in that year had not been made. 2 _________________ 3 Subtract Line 2 from Line 1. This is your Surcharge. Enter the result here and on Form IL-1040, Line 22. 3 _________________ tax.illinois.gov 11 Step 8 Payments and Refundable Credit Step 9 Total Line 25 Line 30 If Illinois income tax was withheld from your income for 2020, see the instructions for Schedule IL-WIT. If Line 29 is greater than Line 24, subtract Line 24 from Line 29. Illinois Income Tax withheld Schedule IL-WIT and a copy of each W-2, 1099-R, 1099-G, 1099-MISC, 1099-INT, 1099-DIV, 1099-OID, 1099-NEC, and W-2G form. Line 31 If Line 24 is greater than Line 29, subtract Line 29 from Line 24. Line 26 Estimated income tax payments Enter the total of any payments you made with • Form IL-1040-ES, Estimated Income Tax Payments for Individuals; • Form IL-505-I; and • any overpayment applied to your 2020 estimated tax from a prior year return. If you expect your yearly tax liability to be greater than $1,000 after subtracting your withholding, pass-through withholding payments, and credits, you may be required to make estimated income tax payments. For more information, see Line 32 and the instructions for Form IL-2210, Computation of Penalties for Individuals. Line 27 Pass-through withholding Enter the total of any pass-through withholding (income tax paid) made on your behalf by a partnership, S corporation, or trust and shown on Schedule K-1-P or Schedule K-1-T for this tax year. Schedule K-1-P or Schedule K-1-T. Line 28 Earned Income Credit If you qualified for a federal Earned Income Credit (EIC), you also qualify for the Illinois Earned Income Credit. Complete Schedule IL-E/EIC to determine the amount of your credit. Schedule IL-E/EIC. Line 29 Total payments and refundable credit Add Lines 25, 26, 27, and 28, and enter the total on Line 29. 12 tax.illinois.gov Lines 32-33 Step 10 Underpayment of Estimated Tax Penalty and Donations Only complete this step for late-payment penalty for underpayment of estimated tax or to make a voluntary charitable donation. Line 32 Late-payment penalty for underpayment of estimated tax If you • have a tax liability greater than $1,000 after subtracting your withholding, pass-through withholding payments, and credits, or • were required to make estimated tax payments and failed to pay the required amount by the payment due dates, you may owe a late-payment penalty for underpayment of estimated tax. See Form IL-2210 for details. If you are 65 years of age or older and you permanently live in a nursing home, or if at least two-thirds of your federal gross income is from farming, you are not required to make estimated tax payments and are not subject to a late-payment penalty for underpayment of estimated tax. You do not owe a late-payment penalty for underpayment of estimated tax if you were not required to file a Form IL-1040 last year. If you owe this penalty, you should consider increasing your withholding or the amount of your estimated tax payments. For more information, see the Form IL-1040-ES Instructions and Form IL-W-4, Employee’s Illinois Withholding Allowance Certificate. Let us figure your penalty and bill you “Federal gross income from farming” does not include payments from the sale of farm land and farm equipment, nor does it include income received by a custom grain harvester who performs grain harvesting and hauling services on farms he or she does not own, rent, or lease. It also does not include the wages of a farm employee or cash rent. Line 32b Nursing home residents Check the box if you or your spouse are 65 years of age or older and permanently living in a nursing home. Line 32c Annualized income Check the box if you annualized your income on Form IL-2210, Step 6. Form IL-2210. Line 32d Previous year Form IL-1040 not required Check the box if you were not required to file a Form IL-1040 in the previous tax year. Line 33 Donations You may contribute to one or more charitable contribution funds. Contributions to the funds may be in any amount of $1 or more and will decrease your refund or increase your balance due. You cannot change your contributions to these funds on an amended return. Schedule G. Figuring your own penalty can be difficult. We encourage you to file your Form IL-1040 and pay the tax you owe without including any penalty. If you owe this penalty, we will figure the amount and bill you. If you annualized your income, you must complete Form IL-2210. See the instructions for Line 32c. Line 32a Farmers Check the box if at least two-thirds of your total federal gross income came from farming. Total federal gross income includes your spouse’s income if your filing status is “married filing jointly.” Federal gross income from farming “Federal gross income from farming” is the amount of income you received from your participation in the production of crops, fruits, fish, livestock (used for draft, breeding, or dairy purposes), or other agricultural products. This includes income from the operation of a stock, dairy, poultry, fruit, or truck farm, plantation, ranch, nursery, range, or orchard – regardless of whether the operation is organized as a sole proprietorship, a partnership, an S corporation, or a trust. “Federal gross income from farming” also includes a share of crops produced in exchange for the use of the land. See IRS Publication 225, Farmer’s Tax Guide. tax.illinois.gov 13 Lines 36-38 Step 11 Refund Line 36 Refund We will not refund any amount less than $1. We also will reduce any overpayment by the amount of any outstanding tax, penalties, and interest you owe and by amounts you owe to other agencies or governments, if those debts have been certified to us. Line 37 Choose your refund method Check the box next to the method by which you would like to receive your refund. You may only check one box. If this is the first year you are filing a Form IL-1040, your refund will be issued as a paper check. Direct Deposit Some financial institutions may not allow a refund to be deposited into an account if the names on the account are not the same names that appear on the refund. If your financial institution does not honor your request for direct deposit, we will send you a check instead. We do not support international ACH transactions. We will only deposit refunds into accounts located within the United States. If your financial institution is located outside the United States, we will send you a check instead of depositing your refund into your account. Direct deposit into “Bright Start” or Bright Directions” If you choose to deposit your refund into your “Bright Start” or “Bright Directions” College Savings Pool account, follow the instructions below. For “Bright Start” you must, • enter “101000695” as the routing number. • check the “Savings” box. • enter “1111514” plus your ten digit “Bright Start” account number. For “Bright Directions” you must, • enter “104910795” as the routing number. • check the “Savings” box. • enter “529” plus your nine digit “Bright Directions” account number. If you use direct deposit, you will get your refund faster. You must enter your routing number, account number, and select either checking or savings. Direct deposit into checking or savings If you choose to deposit your refund directly into your checking or savings account, you must • enter your routing number. For a checking account, your routing number must be nine digits and the first two digits must be 01 through 12 or 21 through 32. The sample check below has an example of a routing number. For a savings account, you must contact your financial institution for your routing number. • check the appropriate box to indicate that you want your refund deposited into your checking or savings account. • enter your account number. For a checking account, your account number may be up to 17 digits. The sample check below has an example of an account number. For a savings account, you must contact your financial institution for your account number. Do not take your account and routing numbers from your checking or savings account deposit slip or include your check number. Include hyphens, but omit spaces and special symbols. You may have unused boxes. Illinois Individual Income Tax Refund Debit Card If you choose to receive your refund on a debit card, your debit card will be mailed to the address entered on your return. If you file a married filing jointly return, you and your spouse will both receive a debit card. Review the debit card information found at http://tax. illinois.gov/DebitCard before making this election. Debit cards will only be mailed to addresses within the United States, the District of Columbia, American Samoa, the Federated States of Micronesia, Guam, the Northern Mariana Islands, Puerto Rico, the Virgin Islands, or the United States Armed Forces (AA, AE, or AP). If you do not have a bank account, a refund debit card may allow you to avoid any check cashing fees associated with a paper check. Paper Check If you choose to receive a paper check, your check will be mailed to the address entered on your return. Line 38 Amount of overpayment to be credited forward Subtract Line 36 from Line 35. This is the amount of overpayment you elect to be applied against your estimated tax obligation. We will reduce any credit to your estimated tax by the amount of any outstanding tax, penalties, and interest you owe. If your credit is reduced, you may owe a late-payment penalty for underpayment of estimated tax. For more information, see Form IL-1040-ES. 14 tax.illinois.gov Lines 38-39 To which tax period will my credit apply? We will apply your credit to the tax period for which estimated payments currently are due based on the date you file this 2020 return. Example 1: You file your 2020 calendar year return on October 6, 2021, which is before the last estimated tax due date for 2021 (January 17, 2022, for calendar year filers). You request your $500 overpayment be applied against your estimated tax. We will apply $500 to your 2021 estimated tax. Example 2: You file your 2020 calendar year return on February 3, 2022, which is after the last estimated tax due date for 2021 (January 17, 2022, for calendar year filers). You request your $500 overpayment be applied against your estimated tax. We will apply $500 to your 2022 estimated tax. With what date will my credit apply against my estimated tax? If your 2020 return was filed • on or before the extended due date of your return (October 15, 2021, for calendar year filers), your credit is considered to be paid on the original due date of your 2020 return (April 15, 2021, for calendar year filers). Example 1: You file your 2020 calendar year return on or before the extended due date of your return requesting $500 be applied against estimated tax. All of your payments are made before the original due date of your return. Your credit of $500 will be considered to be paid on April 15, 2021. However, if all or a portion of your overpayment results from payments made after the original due date of your 2020 return, that portion of your credit is considered to be paid on the date you made the payment. Example 2: You file your 2020 calendar year return on or before the extended due date of your return requesting $500 be applied against estimated tax. Your overpayment includes payments of $400 you made before the original due date of your return, and a $100 payment you made on June 1, 2021. Your credit of $400 will be considered to be paid on April 15, 2021. The remaining $100 credit will be considered to be paid on June 1, 2021. • after the extended due date of your return, your credit is considered to be paid on the date you filed the return on which you made the election. Example 3: You file your 2020 calendar year return on December 1, 2021, requesting $500 be applied against estimated tax. Your credit of $500 will be considered to be paid on December 1, 2021, because you filed your return after the extended due date of your 2020 calendar year return. If your request does not contain this information, your election will be considered invalid and we will not apply your credit as you requested. If you submit a valid request, we will apply your credit as you requested and notify you. Once made, your election to change the tax period to which your credit will apply is irrevocable. You may only apply your credit to tax periods occurring after the period of the return creating the overpayment. If you request to apply more credit than our records show you have available, we will apply the maximum amount available and notify you of the difference. Step 12 Amount You Owe Line 39 Amount you owe If you owe less than $1, you do not have to pay, but you still must file your tax return. Your tax payment is due on or before April 15, 2021. You may pay by • electronic payment. To have your payment electronically taken from your checking or savings account, visit mytax.illinois.gov, or ask your tax professional. You need the same information that is required for direct deposit (see the instructions for Line 37) plus your IL-PIN (Illinois Personal Identification Number). Warning: Many credit unions will not allow an electronic debit from a savings account. Please check with your financial institution. We do not support international ACH transactions. We will only debit your account if your financial institution is located within the United States. If your financial institution is located outside the United States, you must choose another payment option. • credit card. Use your MasterCard, Discover, American Express, or Visa. The credit card service provider will assess a convenience fee. Have your credit card ready and visit our website, or call one of the following: Official Payments Corporation at 1 833 747-1434. Value Payments Systems at 1 888 9-PAY-ILS (1 888 972-9457). FIS at 1 877 57-TAXES (1 877 578-2937). In person at any IDOR Regional office. May I apply my credit to a different tax period? • check or money order. Make the check or money order Yes. If you wish to apply your credit to a tax period other than the one described above, you must submit a separate request in writing to: payable to “Illinois Department of Revenue” (not IRS). Write the taxpayer’s Social Security number, the spouse’s Social Security number if filing jointly, and the tax year in the lower left corner of the payment. Payments must be U.S. negotiable currency, expressed in U.S. dollars, and drawn on a U.S. bank. ILLINOIS DEPARTMENT OF REVENUE PO BOX 19023 SPRINGFIELD IL 62794-9023 You must submit your request to the address above at the time you file your return. Your request must include • your name, • your SSN, • the tax period of the return creating the overpayment, and • the tax period you wish to have the credit apply. tax.illinois.gov Payment options Staple your check or money order and Form IL-1040-V, Payment Voucher for Individual Income Tax, to the front of your paper Form IL-1040. 15 Late filing or late payment If you do not file or pay your tax on time, you may owe penalties and interest. We will send you a bill. If you prefer to figure the penalties yourself, complete Form IL-2210. Sign and Date Step 13 Paid Preparer Third Party Designee Sign and date You, and your spouse if filing jointly, must sign and date your return. If you are filing for a minor as a parent or guardian, you must sign and date the return. If you do not sign your return, • it will be considered not filed and you may be subject to a nonfiler penalty. • and three years have passed since the extended due date of that return, any overpayment will be forfeited. Staple all required copies of forms and schedules, powers of attorney, and letters of estate or office to the tax return. Paid preparer If you pay someone to prepare your return, the paid preparer must also sign and date your return, provide a phone number, and enter their Preparer Tax Identification Number (PTIN) issued by the IRS. Check the box if the paid preparer is self-employed. If the paid preparer is employed with a professional tax preparation firm, the paid preparer also must provide the name, the Federal Employer Identification Number (FEIN), the address, and phone number of the firm. Third party designee (optional) If you want to allow another person to discuss this return and any previous return that affects the liability reported on this return with us, check the box and print the designee’s name and telephone number. The authorization will allow your designee to answer any questions that arise during the processing of your return, call us with questions about your return, and receive or respond to notices we send. You may revoke the authorization at any time by calling or writing us. Mailing your income tax return If no payment is enclosed, mail your return to: If a payment is enclosed, mail your return to: ILLINOIS DEPARTMENT OF REVENUE ILLINOIS DEPARTMENT OF REVENUE PO BOX 19041 PO BOX 19027 SPRINGFIELD IL 62794-9041 SPRINGFIELD IL 62794-9027 16 tax.illinois.gov Allocation Worksheet Keep this worksheet with your income tax records. You must complete the Allocation Worksheet if you file a joint federal return, but choose to file “married filing separately” on your Illinois returns. In Column A, report the items of income and deductions as actually shown on your federal return, and then divide each item between you and your spouse in Columns B and C. – – – – Primary taxpayer’s name Primary taxpayer’s Social Security number Spouse’s name Spouse’s Social Security number Column A Column B Column C Column A: Enter the amounts from your joint federal return. B: Your joint Primary’s portion Spouse’s portion Column Enter the primary taxpayer’s portion of the amount from Column A. federal return of Column A of Column A Column C: Enter the spouse’s portion of the amount from Column A. 1 Wages, salaries, tips, etc. (federal Form 1040 or 1040-SR, Line 1) 1 2 Taxable interest (federal Form 1040 or 1040-SR, Line 2b) 2 3 Ordinary dividends (federal Form 1040 or 1040-SR, Line 3b) 3 4 Taxable refunds, credits, or offsets of state and local income taxes (federal Form 1040 or 1040-SR, Schedule 1, Line 1) 4 5 Alimony received (federal Form 1040 or 1040-SR, Schedule 1, Line 2a) 5 6 Business income or loss (federal Form 1040 or 1040-SR, Schedule 1, Line 3) 6 7 Capital gain or loss (federal Form 1040 or 1040-SR, Line 7) 7 8 Other gains or losses (federal Form 1040 or 1040-SR, Schedule 1, Line 4) 8 9 Taxable IRAs (federal Form 1040 or 1040-SR, Line 4b) 9 10 Pensions & annuities (federal Form 1040 or 1040-SR, Line 5b) 10 11 Rental real estate, royalties, partnerships, S corporations, trusts, etc. (federal Form 1040 or 1040-SR, Schedule 1, Line 5) 11 12 Farm income or loss (federal Form 1040 or 1040-SR, Schedule 1, Line 6) 12 13 Unemployment compensation and Alaska Permanent Fund dividends (federal Form 1040 or 1040-SR, Schedule 1, Line 7) 13 14 Taxable Social Security benefits (federal Form 1040 or 1040-SR, Line 6b) 14 15 Other income (federal Form 1040 or 1040-SR, Schedule 1, Line 8) 15 16 Educator Expenses (federal Form 1040 or 1040-SR, Schedule 1, Line 10) 16 17 Certain business expenses of reservists, performing artists, and fee-basis government officials (federal Form 1040 or 1040-SR, Schedule 1, Line 11) 17 18 Health savings account deduction (federal Form 1040 or 1040-SR, 18 19 Moving expenses (federal Form 1040 or 1040-SR, Schedule 1, Line 13) 19 20 Deductible part of self-employment tax (federal Form 1040 or 1040-SR, Schedule 1, Line 14) 20 21 Self-employed SEP, SIMPLE, and qualified plans (federal Form 1040 or 1040-SR, Schedule 1, Line 15) 21 22 Self-employed health insurance deduction (federal Form 1040 or 1040-SR, Schedule 1, Line 16) 22 23 Penalty on early withdrawal of savings (federal Form 1040 or 1040-SR, Schedule 1, Line 17) 23 24 Alimony paid (federal Form 1040 or 1040-SR, Schedule 1, Line 18a) 24 25 IRA deduction (federal Form 1040 or 1040-SR, Schedule 1, Line 19) 25 26 Student loan interest deduction (federal Form 1040, or 1040-SR Schedule 1, Line 20) 26 27 Tuition and fees (federal Form 1040 or 1040-SR, Sch.1, Line 21) 27 28 RESERVED 28 29 Adjusted gross income (federal Form 1040 or 1040-SR, Line 11) 29 Schedule 1, Line 12) tax.illinois.gov 17 Where the Fiscal Year 2020 Dollar Came From General Funds revenues totaled $40.120 billion in fiscal year 2020. The largest source of revenue to the General Funds was the personal income tax with receipts of $18.471 billion, accounting for 46.0% of the Federal total. Sales taxes were the second-largest source of revenue with $8.255 Revenues billion, or 20.6% of the total. Other major sources included federal 8.9% revenues of $3.551 billion (8.9%), corporate income taxes of $2.081 billion (5.2%), public utility taxes of $831 million (2.1%), and lottery and Corporate riverboat transfers of $825 million (2.0%). All other sources of revenue, Income Taxes including insurance, cigarette, inheritance, liquor, short-term borrowing 5.2% and other miscellaneous sources totaled $6.106 billion for fiscal year Lottery/Riverboat tranfers 2020, accounting for 15.2% of total revenues. Public Utility General Funds Revenues Sales Taxes 20.6% Individual Income Taxes 46.0% Miscellaneous 15.2% Taxes 2.1% 2.0% How the Fiscal Year 2020 Dollar Was Spent In fiscal year 2020, expenditures from the General Funds totaled $39.959 billion, which is $161 million less than revenues received for the fiscal year. Education encompassed the largest portion of the General Funds budget with fiscal year 2020 spending of $17.667 billion (or 44.2% of expenditures), including $14.089 billion for elementary and secondary education (includes teacher retirement contributions) and $3.578 billion for higher education (includes retirement contributions). Health and Social Services expenditures, which include spending for medical assistance, children and family services, the operation of mental health and developmentally disabled facilities and other related services, totaled $12.787 billion in fiscal year 2020, accounting for 32.0% of total General Funds expenditures. Transfers-out of $2.596 billion from the General Funds primarily supported debt service payments on bonds issued. Spending for Public Protection and Justice of $2.516 billion included funding for the operation of prisons, courts, and law enforcement. Other spending included $4.274 billion for General Government, and $136 million for environmental assistance and employment and economic development. General Funds Expenditures By Function Health and Social Services 32.0% Education 44.2% All Other .3% Transfers Out 6.5% General Government 10.7% Public Protection and Justice 6.3% How the Fiscal Year 2020 Lottery Dollar Was Spent Lottery Expenditures Operational Expenses 21.2% Education 57.2% Prizes 21.6% According to Illinois Office of Comptroller records, Illinois lottery revenues deposited into the State Treasury totaled $1.164 billion in fiscal year 2020. Of this total, $1.157 billion was deposited into the State Lottery Fund while $7.2 million from special instant games was deposited into seven separate funds. Tota
Extracted from PDF file 2020-illinois-income-tax-instructions.pdf, last modified December 2020

More about the Illinois Income Tax Instructions Individual Income Tax TY 2020

This printable booklet includes instructions for filling out your IL-1040 income tax form. Income Tax Instructions requires you to list multiple forms of income, such as wages, interest, or alimony .

We last updated the Illinois Income Tax Instructional Booklet in February 2021, so this is the latest version of Income Tax Instructions, fully updated for tax year 2020. You can download or print current or past-year PDFs of Income Tax Instructions directly from TaxFormFinder. You can print other Illinois tax forms here.

Other Illinois Individual Income Tax Forms:

TaxFormFinder has an additional 75 Illinois income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form IL-1040-ES Estimated Income Tax Payments for Individuals
Form IL-1040 Individual Income Tax Return
Form IL-1040-V Payment Voucher for Individual Income Tax
Schedule ICR Illinois Tax Credits
Schedule NR-1040 Nonresident and Part-Year Resident Computation of Illinois Tax

Download all IL tax forms View all 76 Illinois Income Tax Forms


Form Sources:

Illinois usually releases forms for the current tax year between January and April. We last updated Illinois Income Tax Instructions from the Department of Revenue in February 2021.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Illinois Income Tax Instructions

We have a total of six past-year versions of Income Tax Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2017 Income Tax Instructions

2017 Form IL-1040 Instructions

2015 Income Tax Instructions

2015 Form IL-1040 Instructions


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