Individuals
Same-Sex Civil Unions
Beginning with the 2012 tax year, if you are in a same-sex civil union you may file your Illinois return electronically. You must file your Illinois return as if you had filed your federal return as married (jointly or separately), and include the new Schedule CU, Civil Union Income Report, with your Illinois return. See the filing status instructions for details.
Schedule M, Other Additions and Subtractions for Individuals
Schedule M, Other Additions and Subtractions for Individuals, includes a new subtraction for Will-Kankakee Regional Development Authority bonds.
Schedule 1299-C, Income Tax Subtractions and Credits
A River Edge Historic Preservation Credit, Live Theater Production Tax Credit, and Hospital Credit have been added to Schedule 1299-C. The Enterprise Zone Dividend Subtraction, Jobs Tax Credit, and
Veterans Jobs Credit have been modified. See the Schedule 1299-C Instructions for details. In addition, this form may now be filed electronically.
Exemption Allowance
Taxpayers and their dependents will receive an increased standard exemption allowance this year. The standard exemption allowance has increased from $2,000 to $2,050 for tax year 2012.
Earned Income Credit
The Illinois Earned Income Credit (EIC) percentage has increased from 5 percent to 7.5 percent. If you claimed a federal EIC, you may now claim 7.5 percent of this credit on your Illinois return.
Underpayment of Estimated Tax Penalty
A new check-box has been added to Step 11 of the IL-1040 for taxpayers that were not required to file an Illinois Individual Income Tax return in the previous tax year.
Schedule G, Voluntary Charitable Donations
You may donate to several new charitable funds this year. See Schedule G for a description of each fund.
Form 1099-G
We no longer automatically mail 1099-G forms to report your prior year Illinois Individual Income Tax overpayment unless you specifically request a paper form. Instead, we ask that you get this information at our website. If you want us to mail you a paper Form 1099-G, you must check the appropriate box in Step 13 of your IL-1040.
Debit Card Refunds
Beginning in 2013, taxpayers that use our free WebFile program to file their Form IL-1040 may choose to receive their Individual Income Tax refund as a debit card.
Businesses
IL-990-T, IL-1023-C, IL-1041, IL-1065, IL-1120, IL-1120-ST, and IL-1000
The mailing address is now required information on Step 1.
If you wish to allow us to speak with your preparer about your return, check the box on the return and see Specific Instructions for more information.
IL-1120, Corporation Income and Replacement Tax Return
We have a new address for filing Form IL-1120
with a payment attached. The new address is: ILLINOIS DEPARTMENT OF REVENUE, PO BOX 19028, SPRINGFIELD, IL 62794-9028.
The address for filing Form IL-1120
without a payment attached remains the same: ILLINOIS DEPARTMENT OF REVENUE, PO BOX 19008, SPRINGFIELD, IL 62794-9008.
Schedule NLD and Schedule UB/NLD
For tax years ending on or after December 31, 2012, and before December 31, 2014, corporations, other than S corporations, are allowed an Illinois net loss deduction (NLD) up to a maximum of $100,000. Schedule NLD, Illinois Net Loss Deduction, and Schedule UB/NLD, Unitary Illinois Net Loss Deduction, have been redesigned to account for the NLD limitation. See Specific Instructions for more information.
Schedule INS and Schedule UB/INS
Schedule INS and Schedule UB/INS have-been redesigned to present the tax reduction calculated on the schedules as a reduction in tax on Step 8, Lines 50a and 51a. Do not apply the tax reduction figured on Schedules INS or UB/INS directly to Form IL-1120, Lines 50 or 51. Please review the instructions carefully.
Income Allocable to Illinois
Figure your income allocable to Illinois, has been modified. You must indicate whether your base income or loss is derived inside Illinois only, if it is derived both inside and outside Illinois, or entirely outside Illinois. See Specific Instructions for more information.
Schedule 1299-A, Tax Subtractions and Credits (for partnerships and S corporations)
The Enterprise Zone Dividend Subtraction and Enterprise Zone Interest Subtraction have been modified. If you are eligible to take these subtractions, do not include any dividends or interest received or accrued on or after August 7, 2012. See the Specific Instructions on Schedule 1299-A for more information.
For tax years ending on or after December 31, 2012, and on or before December 31, 2016, the Veterans Jobs Credit has been modified to allow a credit for either “qualified veterans” or “qualified unemployed veterans.” See Schedule 1299-A instructions for more information.
For tax years ending on or after December 31, 2012, a Hospital Credit is available. See the specific instructions for more information.
Schedule 1299-B, Enterprise Zone or Foreign Trade Zone (sub-zone) Subtractions (for corporations & fiduciaries)
The Enterprise Zone Dividend Subtraction and Enterprise Zone Interest Subtraction have been modified. If you are eligible to take these subtractions, do not include any dividends or interest received or accrued on or after August 7, 2012. See the Specific Instructions on Schedule 1299-B for more information.
Schedule 1299-D, Income Tax Credits (for corporations & fiduciaries)
The Jobs Tax Credit has been modified. When computing your Jobs Tax Credit you may not include any employees hired in an enterprise zone in your calculation of eligible employees.
For tax years ending on or after December 31, 2012, and on or before December 31, 2016, the Veterans Jobs Credit has been modified to allow a credit for either “qualified veterans” or “qualified unemployed veterans.” See Schedule 1299-D instructions for more information.
For tax years ending on or after December 31, 2012, a Hospital Credit is available. See the specific instructions for more information.
Schedule M, Other Additions and Subtractions (for businesses)
Schedule M, Line 19 has expanded to include Bonds issued by the Will-Kankakee Regional Development Authority under the Will-Kankakee Regional Development Authority Law.
IL-477, Replacement Tax Investment Credits
If you are claiming a distributive share of replacement tax investment from partnerships or S corporations on Form IL-477, you must attach a copy of the Schedule K-1-P you received from a partnership or S corporation reporting the distribution.
Schedule 4255, Recapture of Investment Tax Credits
Schedule 4255 has been modified to allow taxpayers to report the amount of recapture that was passed through to a partner or shareholder.
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
Schedule K-1-P and K-1-T have been expanded to allow Grantor Trusts and other federally disregarded entities to identify the taxpayer that will report the income or loss shown on the Schedule K-1-P or Schedule K-1-T. Please see the Schedule K-1-P or Schedule K-1-T instructions for more information.
Software Vendors/e-Filers
For tax years ending on or after December 31, 2012, electronic filing for taxpayers filing Form IL-1065 and accompanying schedules, is available as part of the federal-state electronic filing program. Currently, developers can obtain the XML layout information for Illinois forms and schedules from our website.
