Illinois Form IL-1040 Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are essentially designed to collect the same data, they are all constructed differently. What follows is a breakdown of Form Il-1040, the Illinois Individual Income Tax Return. If you don't live in Illinois, not to worry, we'll be tackling the other 34 states soon enough.
Compared to other states, Illinois is a rather attractive form and it's easy too. The form is broken up by 12 steps, (which may seem like a lot), but it's only made up of 36 Lines. So this beauty is streamlined, efficient, and snap to complete. Form IL-1040 is as easy as it get's and receives a 9 on the user - friendly meter.
As usual begin by recording all your personal information. This includes your social security number, name, address, and filing status. Get this, Il-1040 is only two pages and step 1 takes up nearly half of page 1. Pretty sweet eh?
Start the income section by including your federal adjusted gross income. You can find it on Line 37 of your 1040, Line 37 of your 1040A, or Line 21 of your 1040EZ. Then on Line 2 record your federally tax-exempt interest and any dividend income from your 1040 or 1040A Line 8b. Also include any other additions to your income on Line 3, just be sure to include a Schedule M if it applies. Now add Lines 1 through 3 to get your total income, which then goes on Line 4.
Step 3 is designed to help you figure your base income. On Line 5 record any income from Social Security or other retirement plans. On Line 6 you'll again need to refer to your federal 1040 form (Line 10) to figure any income tax overpayment. If you have any other subtractions to your income, (attach a schedule M) and include the amount on Line 7. Now add lines 5 through 7 to get your total adjustments to your adjusted gross income, just put that sum on Line 8. Then you can determine your base income by subtracting Line 8 from Line 4.
Multiply the number of exemptionss you claimed on your federal return by $2,000 and enter it at the top of Line 10. If someone else can claim you, you're 65 or older, or if you're legally blind, work through boxes 10b, 10c, and 10d. Now add lines a through d and enter the total as your exemption allowance at the bottom of Line 10. Next subtract Line 10 from Line 9 and enter the total on Line 11. If you're a part time or nonresident, work through Line 12 to figure your Illinois net income.
To figure your tax, multiply Line 11 by 3% (that's .03) and enter the result on Line 13. If you needed to work through a Schedule 4255, record any recapture of investment credits on Line 14. Then add Lines 13 and 14 to get your total the sum of which goes on Line 15. It's crazy to think that we're already more than halfway done.
If you paid any income tax to another state, attach a Schedule CR and record it on Line 16. If you filled out a Schedule ICR record any property tax or education expense credits on Line 17. Include any credit amount from Schedule 1299-C on Line 18. Now add Lines 16, 17, and 18 to get your total credits which then goes on Line 20. Carry the amount on Line 20 forward to Line 21 on the next page. On Line 22 declare any household unemployment tax and on line 23 declare any use tax on internet, mail order, or other out-of-state purchases. The use tax can be found with the UT Worksheet or UT Table in the instructions. Then add Lines 21, 22, and 23 to find out you total tax which you should report on Line 24.
This is the most important step of the whole form, so be sure to take your time filing it out. On Line 25 record you Illinois income tax withholdings, be sure to attach your W-2 and 1099 forms. If you made any estimated payments, jot down that amount on Line 26. If you needed to work through a Schedule K-1-P or a K-1-T, enter that amount on Line 27. If you were able to secure an earned income credit from your Schedule ICR, enter that amount on Line 28. Now add Lines 25 through 28 to get your total payment and refundable credits which then gets recorded on Line 29.
If Line 29 is larger than Line 24 you've overpaid and are due a refund, subtract Line 24 from Line 29 to see how much. But if Line 24 is greater than Line 29, you've underpaid and still have a tax liability, subtract Line 29 from Line 24 to get that amount.
If you've incurred a late payment penalty for underpayment on your estimated tax, fill in that amount on Line 32. If any of the next conditions apply; 2/3rds of your income comes from farming, if you are 65 or older and permanently live in a nursing home, or if you had to annualize your income (because you did not get it all in the tax year you worked) check the appropriate boxes. If you made any charitable donations (and it's easy), complete a schedule G and record that amount on Line 33. Now add Lines 32 and 33 to get your total penalty and donations on Line 34.
If Line 30 is greater than Line 34 you're due a refund. Simply subtract 34 from 30 to get your remaining overpayment, and record it on Line 36. Just be sure to include your routing and bank account numbers in the box below. If you want a portion of this amount applied to next year, feel free to declare the amount on Line 38.
To get the amount you owe, add Lines 31 and 34 and enter the total on Line 39. Remember, if your overpayment is less than the amount of your penalties then you still have a liability and it should be written on Line 39. At this point the Illinois department of revenue, directs you to the instruction booklet for payment options.
All that's left is to sign, date, and record your phone and social security numbers. If you used a tax preparer, they should know to do the same.
The Chicago (football) Bears were known as the Monsters of the Midway. On their way to a historic 1985 season, they were big, mean, and seriously stressed their opponents. This form is neither big nor mean and is sure to cause little or no stress. So don't wait for Ditka to come back to coaching to fill it out.
