Beginning in 2017, the Domestic Productions Activities Deduction needs to be added back to the Illinois return on Line 10. The following are other additions that need to be manually added back to the Illinois return to correctly calculate the tax.
Your child’s federally tax-exempt interest and dividend income (Line 1)
If you filed form 8814 to claim your child's interest on your return, you must add back any federally tax-exempt interest or dividends earned by the child.
Below is a list and description of income that would need to be added to your Illinois return:
Distributive Share of Additions from a Partnership, S Corporation, Trust, or Estate (Line 2)
Add you distributive share of additions received from a partnership, S-Corp, Trust or Estate.
Lloyd's plan of operation loss (Line 3)
Loss reported to you on form IL-1065 from a Lloyd's plan of operation and the loss was included in your adjusted gross income.
IRC Section 529 College Savings Plan Earnings (Line 4)
Earnings from 529 College Savings and Tuition Programs if not already included in adjusted gross income on line 1 of the IL-1040.
Do not include Bright Start, Bright Directions, College Illinois and qualified IRS Section 529 plans that comply with the college savings network disclosure principles and annually inform Illinois residents that in-state programs exist. These are exempt from tax.
Illinois Special Depreciation Addition (Line 5)
Enter amounts of federal depreciation claimed on forms 4562 and 2106
Business Expense Recapture - Nonresidents Only (Line 6)
Expenses that were deducted from the return and 2 preceding tax years for income that was classified as business income on a prior year return and is later shown to be non-business income
Recapture of Deductions for Contributions to College Savings Plans transferred to an Out-of-State Plan (Line 7)
A rollover from an Illinois plan to another state's plan. Enter the smaller of:
- the amount of deductions you claimed for amounts contributed to an Illinois college savings plan, minus any deductions recaptured in prior years, or
- the amount you transferred during the tax year from the Illinois plan to an out-of-state plan.
Recapture of Deductions for Contributions to College Savings Plans withdrawn for Nonqualified Expenses or Refunded (Line 9)
If funds were withdrawn or a contribution was refunded from a qualified tuition program and the funds were not used to pay qualified expenses, include the amount in your income. If funds were refunded due to death or disability of a beneficiary of the program, the income is not added.
Only for Tax Year 2017 - Income attributable to domestic production activities under IRC Section 199 (Line 10)
Amount reported on federal form 1040, Line 35
Other Income (Line 11)
Any amounts that you are required to add to your federal adjusted gross income to arrive at your Illinois base income. Include a detailed description of the addition.
This additional income can be added by following the steps below:
- State Section
- Edit (pencil)
- Additions and Subtractions to Income Schedule M
For additional information, please see the instructions for Illinois Schedule M.