The Illinois Payments section is used to report certain payments made directly to the Illinois Department of Revenue, including extension payments and any refund you want applied to next year's Illinois taxes. Information such as Illinois withholding from Forms W-2 and 1099 is generally carried into your Illinois return automatically from the federal section.
What Is Included in the Illinois Payments Section?
The Illinois Payments screen allows you to:
- Enter payments made with an Illinois extension.
- Apply all or part of your Illinois refund to next year's Illinois tax return.
- Review payment information that may affect your Illinois refund or balance due.
What Is an Illinois Extension Payment?
If you filed for an extension and made a payment with Form IL-505-I, Automatic Extension Payment for Individuals, enter that payment in the Illinois Payments section. Illinois instructs taxpayers to include extension payments when calculating total payments made toward their tax liability.
Where Do I Find My Extension Payment Amount?
You can find the amount on:
- A copy of Form IL-505-I
- Your payment confirmation from Illinois
- Your bank or payment records
- Your Illinois tax account records
Enter only the amount actually paid with the extension.
How Do I Apply My Refund to Next Year's Taxes?
Illinois allows you to apply all or part of an overpayment to your next year's estimated tax obligation instead of receiving it as a refund. The amount applied becomes a credit toward future Illinois taxes.
If you choose this option:
- Your refund will be reduced by the amount you apply forward.
- The amount will be credited to a future Illinois tax year.
- The election generally cannot be changed after filing.
How to Complete the Illinois Payments Screen
Step 1: Enter Any Extension Payment
Locate the field:
Enter any amount paid with extension (Form IL-505-I)
Enter the amount you paid with your Illinois extension.
Step 2: Choose Whether to Apply Your Refund Forward
Locate the field:
Enter the amount of your state refund, if any, that you would like to apply to next year's tax return
Enter:
- The full refund amount if you want all of it applied forward.
- A partial amount if you want part of your refund applied forward and the remainder refunded to you.
- Zero if you want your entire refund issued to you.
Step 3: Continue Through the Return
Review your refund or balance due after completing the Payments section and continue through the remaining Illinois interview screens.
Program Path
State Return > Illinois Return > Payments
Frequently Asked Questions
Are my Illinois withholding amounts entered here?
No. Illinois withholding from Forms W-2 and Forms 1099 is generally transferred automatically from the federal return and is reported elsewhere on the Illinois return. Illinois withholding is ultimately reported through Schedule IL-WIT and Form IL-1040.
What if I never filed an extension?
If you did not make an Illinois extension payment, leave the extension payment field blank or enter zero.
Can I apply only part of my refund to next year?
Yes. Illinois allows you to apply all or a portion of your overpayment toward next year's estimated tax obligation.
What happens if I apply my refund to next year?
The amount applied forward will not be issued as part of your current-year refund. Instead, it will be treated as a payment toward a future Illinois tax year.
Can I apply a refund if I owe Illinois taxes?
No. A refund must exist before any amount can be applied to next year's taxes. If you have a balance due, there is no refund available to carry forward.
Helpful Tips
- Keep records of all Illinois extension payments.
- Verify extension payment amounts before filing.
- Review your refund carefully before electing to apply it to next year's taxes.
- Make sure the amount applied forward does not exceed your available refund.
- Retain copies of payment confirmations and your completed Illinois return for your records.
Additional Information
Illinois includes extension payments with other tax payments reported on Form IL-1040. Taxpayers may also elect to apply an overpayment to future estimated taxes rather than receiving a refund. Illinois provides rules regarding how and when those credits are applied to future tax periods.