If you earned certain Illinois tax credits during the year or are carrying forward credits from prior years, you may need to complete Schedule 1299-C, Income Tax Subtractions and Credits. This schedule is used to claim eligible Illinois tax credits that can reduce your Illinois tax liability. The credits reported on Schedule 1299-C flow to Form IL-1040, Line 17.
What Is Schedule 1299-C?
Schedule 1299-C is an Illinois form used to report various credits authorized under Illinois law. These credits are generally claimed by taxpayers who received a credit certificate, operated a qualifying business, made qualifying investments, or otherwise met the requirements for a specific Illinois tax credit program.
Illinois instructs taxpayers to complete Schedule 1299-C when eligible and enter the resulting credit amount on Form IL-1040, Line 17.
Who Needs to Complete Schedule 1299-C?
You may need to complete Schedule 1299-C if you:
- Earned an Illinois tax credit during the current tax year.
- Have a credit carryforward from a prior year.
- Received an Illinois credit certificate.
- Are claiming an Illinois credit that requires Schedule 1299-C reporting.
Many taxpayers will not need this schedule. Only complete it if you qualify for one or more of the listed credits.
How Do I Complete Schedule 1299-C?
Step 1: Determine Whether You Need Schedule 1299-C
On the Schedule 1299-C screen, answer:
Do you want to complete Schedule 1299-C (Income Tax Subtractions and Credits)?
Select Yes if you qualify for any credits or subtractions reported on Schedule 1299-C.
Step 2: Enter Dividend Subtractions (If Applicable)
If you qualify for any dividend-related subtraction reported through Schedule 1299-C, select Begin next to Dividend Subtractions and complete the required entries.
Step 3: Enter Credits Earned During the Current Year
Select Begin next to Credits Earned During Current Tax Year.
Enter information for any Illinois credits you earned during the tax year and follow the interview questions for the applicable credit.
Step 4: Enter Credit Carryforwards
If you have unused credits from prior years, select Begin next to Credits Carried Forward.
Enter the carryforward amounts exactly as shown on your prior-year Illinois records or credit schedules.
Step 5: Attach Credit Certificates if Required
Some Illinois credits require supporting documentation.
If applicable, select Begin next to:
Attach PDF of Credit Certification(s) if Applicable
Upload any required credit certificates or supporting documentation.
Step 6: Review Your Return
After completing Schedule 1299-C:
- Continue through the Illinois interview.
- Review Schedule 1299-C.
- Verify the credit amount carried to Form IL-1040, Line 17. [il-1040-instr | PDF]
Program Path
State Return > Illinois Return > Credits > Schedule 1299-C
The screen provides access to:
- Dividend Subtractions
- Credits Earned During Current Tax Year
- Credits Carried Forward
- Credit Certification Attachments
Frequently Asked Questions
What credits are reported on Schedule 1299-C?
Schedule 1299-C is used for various Illinois tax credit programs. The credits available may change from year to year based on Illinois law and the current version of the schedule.
Do I need Schedule 1299-C if I don't have any credits?
No. If you do not qualify for any credits or subtractions reported on Schedule 1299-C, you generally do not need to complete the schedule.
What is a credit carryforward?
A carryforward is an unused credit from a prior year that Illinois allows you to use in a later tax year, subject to the rules for that credit.
Do I need to attach documentation?
Some credits require a certificate or supporting documentation. If a credit certificate was issued to you, retain a copy and upload it when required.
Where does the credit appear on my Illinois return?
Credits from Schedule 1299-C are reported on Form IL-1040, Line 17 – Credit from Schedule 1299-C.
Helpful Tips
- Gather all Illinois credit certificates before starting your return.
- Review prior-year returns for unused credit carryforwards.
- Enter carryforward amounts exactly as reported on prior Illinois forms.
- Keep copies of all supporting documents and certifications.
- Attach required PDF documentation during the filing process to help avoid processing delays.
Additional Information
Illinois provides Schedule 1299-C as the reporting mechanism for eligible Illinois income tax credits. If you qualify for one or more credits, completing this section correctly may reduce your Illinois tax liability. Review all credit documentation carefully before filing your return.