Knowledge system is not enabled for this account. Redirecting to LiveHelpNow... Illinois Other Subtractions
Get the POWER of PRO!
Support Center > Knowledge base> Article: Illinois Other Subtractions

Illinois Other Subtractions

Article ID: 33525 Print
Question
What Categories Fall Under Illinois Other Subtractions?

Answer

Other Subtractions to Income Include:

Line 12 — Contributions you made to "Bright Start" and "Bright Directions" College Savings Pools and "College Illinois" Prepaid Tuition Program

Enter the amount of contributions you made during the tax year to the "Bright Start" and "Bright Directions" College Savings Pools and the "College Illinois" Prepaid Tuition Program. You may also subtract contributions made on your behalf to one of these plans by your employer. You may not subtract contributions made to any other college savings program. If your contributions were made by rolling over funds from another college savings program into a "Bright Start," "Bright Directions," or "College Illinois" account, you may not subtract any income that was earned in the other savings program and rolled over into your Illinois account.

The total of Lines 12a, 12b, and 12c may not exceed $10,000 ($20,000 if married filing a joint return).

Line 13 — Distributive share of subtractions from a partnership, S corporation, trust, or estate

Enter the amount of your distributive share of subtractions from a partnership, S corporation, trust, or estate. The partnership, S corporation, trust, or estate is required to notify you of your share of any of these subtractions. You may enter the amount of such subtractions only if you are notified. An Illinois entity will send you a Schedule K-1-P or K-1-T specifically identifying your subtractions.

Your distributive share of subtractions from a partnership, S corporation, trust, or estate for

contributions you made to a job training project should be included on Line 13, not Line 15.

special depreciation should be included on Line 13, not Line 18.

U.S. government obligations should be included on Line 13, not Line 20.

Your beneficiary share of payments from certain retirement plans and retirement payments to retired partners reported on Schedule K-1-T should be included on Line 13, not Form IL-1040, Line 5.

Do not include any distributive share of river edge redevelopment zone and high impact business dividend subtractions from a partnership, S corporation, trust, or estate on this line. These subtractions should be included on Line 22 of this schedule.

a copy of Illinois Schedule K-1-P or K-1-T, which identifies you as a partner, shareholder, or beneficiary and lists your Social Security number, or a copy of the notification (which includes the Federal Employer’s Identification Number) furnished to you that specifically details the amount of the subtraction being claimed as your distributive share. We will not accept a federal Schedule K-1 or a Schedule K-1 worksheet.

If the notification you received from a partnership, S corporation, trust, or estate identifies that entity as a grantor trust or disregarded entity and does not show you as the person who will report the income or loss from the grantor trust or disregarded entity, attach a detailed statement explaining the situation.

Line 14 — Restoration of amounts held under claim of right

Enter the amount equal to

the deduction used to compute the federal tax credit for restoration of amounts held under claim of right under the Internal Revenue Code, Section 1341, or

any itemized deduction taken from adjusted gross income in the computation of taxable income for restoration of amounts held under claim of right for the taxable year.

Line 15 — Contributions to a job training project

Enter the amount equal to the contributions you made under the Tax Increment Allocation Redevelopment Act to a job training project. For more information, see Informational Bulletin FY 90-40.

Do not include your distributive share of any contributions to a job training project from a partnership, S corporation, trust, or estate on this line. Your distributive share of subtractions should be included on Line 13.

Line 16 — Expenses related to federal credits or federally tax-exempt income

Enter the amount

of any expenses that were disallowed as federal deductions under Internal Revenue Code (IRC) Section 45G(e)(3), 171(a)(2), 265, or 280C because they are related to income that is exempt from federal tax which you added back on Form IL-1040, Line 2 or because a credit was allowed for the expenses, or

included in your adjusted gross income under IRC Section 87.

Line 17 — Home Ownership Made Easy Program interest

If you bought a home under the Home Ownership Made Easy (HOME) Program, you may subtract the total amount of interest income you earned over the life of your HOME account in the tax year that you bought your home.

Line 18 — Special Depreciation subtraction

Enter the subtraction amount from Form IL-4562, Step 3, Line 10. See Form IL-4562 instructions for more information.

Do not include your distributive share of any special depreciation subtraction from a partnership, S corporation, trust, or estate on this line. Your distributive share of subtractions should be included on Line 13.

Form IL-4562.

Line 19 — Military pay earned

Enter the amount of military pay that you received from the U.S. Armed Forces or the National Guard of any state.

You may not subtract the following:

combat pay that is not included in your federal adjusted gross income, Line 1

pay you received

under the Voluntary Separation Incentive,

from the military as a civilian,

under the Ready Reserve Mobilization Income Insurance Program,

for duty as an officer in the Public Health Service

For more information, see Publication 102, Illinois Filing Requirements for Military Personnel.

Form W-2 showing your military pay.

Line 20 — U.S. Treasury bonds, bills, notes, savings bonds, and U.S. agency interest

Enter the income included in your Form IL-1040, Line 1, you received from U.S. Treasury bonds, bills, notes, savings bonds, U.S. agency income, and other similar obligations from your U.S. 1040A or 1040, or

mutual fund statement plus

any income listed in Publication 101, Income Exempt from Tax, under

"What if I have income from obligations of the United States Government?"

"What federally-taxable income is exempt from Illinois Income Tax by other federal statutes?"

"What if I have distributions from money market trusts (mutual funds)?"

Mutual fund distributions

Include the entire amount of federally taxed distributions

received from mutual funds investing exclusively in U.S. government obligations. If the mutual fund invests in

U.S. government obligations and non-exempt obligations, your deduction is the distribution received from the mutual fund attributable to the U.S. government obligations, as determined by the mutual fund. If the mutual fund does not provide this percentage amount, multiply the total distribution by a fraction. The numerator is the amount invested by the fund in exempt U.S. government obligations, and the denominator is the fund’s total investment.

This subtraction is the amount net of any related bond premium amortization.

Savings bond interest that is not included in your federal adjusted gross income is not an allowable subtraction.

Do not include your distributive share of a subtraction for U.S. government obligations from a partnership, an S corporation, a trust, or an estate on this line. Your distributive share of subtractions should be included on Line 13.

a copy of U.S. 1040A or 1040, Schedule B, if required federally, a copy of the statement from the mutual fund, and any worksheets that clearly identify your interest from U.S. obligations.

For more details, see Publication 101, Income Exempt from

Tax.

 

Line 21 — August 1, 1969, valuation limitation

 

Enter the amount of your August 1, 1969, valuation limitation from Schedule F, Gains from Sales or Exchanges of Property Acquired Before August 1, 1969, Line 17.

 

Schedule F and copies of required federal forms.

 

Line 22 — River edge redevelopment zone and high impact business dividend subtraction

 

Enter the amount from Schedule 1299-C, Step 2, Line 7.

 

Schedule 1299-C.

 

Line 25 — Recovery of items previously deducted on U.S. 1040, Schedule A

 

Enter the amount of recovery of items (including refunds of any state and local income taxes, other than Illinois) that you deducted on your U.S. 1040, Schedule A in a prior year. You must have included these items on your U.S. 1040, page 1, and your Form IL-1040, Line 1, for this tax year.

 

a copy of U.S. 1040, page 1, and any schedule or attachment to your U.S. 1040 that shows the nature and source of this deduction.

 

Line 26 — Ridesharing money and other benefits

 

Enter the amount of ridesharing money and benefits (other than salary) received by a driver in a ridesharing arrangement using a motor vehicle if these amounts are included in your Form IL-1040, Line 1.

Line 27 — Payment of life insurance, endowment, or annuity benefits received

Enter the amount of payment of life insurance, endowment, or annuity benefits received before the time they would have ordinarily been paid as an indemnity for a terminal illness. This amount must be included in your Form IL-1040, Line 1.

Line 28 — Lloyds plan of operations income if reported on your behalf on Form IL-1065

Enter the income included in your adjusted gross income from a Lloyds plan of operations if that amount was reported on your behalf on Form IL-1065.

Line 29 — Income from Illinois pre-need funeral, burial, and cemetery trusts

Enter the amount of income earned by trust accounts established under the Illinois Pre-Need Cemetery Sales Act or the Illinois Funeral or Burial Funds Act. You may claim this amount only if this income is included on your Form IL-1040, Line 1 or Line 3.

Line 30 — Education loan repayments for primary care physicians

Enter the amount of education loan repayments made for primary care physicians who agree to practice in designated shortage areas for a specified period of time under the terms of the Family Practice Residency Act. You may claim this amount only if this income is included on your Form IL-1040, Line 1 or Line 3.

Line 31 — Reparations or other amounts received as a victim of persecution by Nazi Germany

Enter the amount of reparations or other amounts received as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime that are included in your adjusted gross income. Also include any reparations or other amounts received as an heir of such victim that are included in your adjusted gross income.

Line 32 — Interest on tax-exempt obligations of state and local government

Enter the amount of interest on obligations of Illinois state and local governments included on Form IL-1040, Line 1, 2, or 3. This amount is the amount net of any related bond premium amortization.

Interest from state and local government obligations is not exempt from Illinois Income Tax except where legislation has been specifically adopted to provide for an exemption.

The following is a list of securities that are exempt. However, income from these obligations is not exempt if you own them indirectly through owning shares in a mutual fund.

Securities exempt from Illinois Income Tax include

Illinois Housing Development Authority bonds and notes (except housing-related commercial facilities bonds and notes)

Tri-County River Valley Development Authority bonds

Illinois Development Finance Authority bonds, notes, and other obligations (only venture fund and infrastructure bonds)

Quad Cities Regional Economic Development Authority bonds and notes (only those bonds declared exempt from taxation by the Authority)

College Savings bonds

Illinois Sports Facilities Authority bonds

Higher Education Student Assistance Act bonds

Illinois Development Finance Authority bonds issued

under the Illinois Development Finance Authority Act,

Sections 7.80 - 7.87

Rural Bond Bank Act bonds and notes

Illinois Development Finance Authority bonds issued under the Asbestos Abatement Finance Act

Quad Cities Interstate Metropolitan Authority bonds

Southwestern Illinois Development Authority bonds

Illinois Finance Authority bonds issued under the Illinois Finance Authority Act, Sections 820.60 and 825.55 or the Asbestos Abatement Finance Act

Illinois Power Agency bonds issued by the Illinois Finance Authority

Central Illinois Economic Development Authority bonds

Eastern Illinois Economic Development Authority bonds

Southeastern Illinois Economic Development Authority bonds

Southern Illinois Economic Development Authority bonds

Illinois Urban Development Authority bonds

Downstate Illinois Sports Facilities Authority bonds

Western Illinois Economic Development Authority bonds

Upper Illinois River Valley Development Authority Act bonds

Will-Kankakee Regional Development Authority bonds

For more information see Publication 101.

Line 33 — Interest on tax-exempt obligations of non-U.S. governments

Enter the amount of interest on obligations of non-U.S. governments included on Form IL-1040, Line 1, 2, or 3. This amount is the amount net of any related bond premium amortization.

Interest from non-U.S. government obligations is not exempt from Illinois Income Tax except where legislation has been specifically adopted to provide for an exemption.

Non-U.S. securities exempt from Illinois Income Tax include

Bonds issued by the government of Guam

Bonds issued by the government of Puerto Rico

Bonds issued by the government of the Virgin Islands

Bonds issued by the government of American Samoa

Bonds issued by the government of the Northern Mariana islands

Mutual mortgage insurance fund bonds

Line 34 — Your child’s interest reported on U.S. Form 8814

Enter the amount of your child’s income that you reported on U.S. Form 8814, Parents’ Election To Report Child’s Interest and Dividends, that would be allowed as a subtraction on Lines 20, 32, or 33 of this schedule if you had received it rather than your child. You may claim this amount only if your child’s income is included on your Form IL-1040, Line 1 or Line 3.

Line 35 — Railroad sick pay and railroad unemployment compensation

Enter the amount of any railroad sick pay and unemployment compensation that is included in your Form IL-1040, Line 1.

Do not include retirement or third party sick pay on this line.

Form 1099-G or Form W-2 showing railroad sick pay and unemployment compensation and a copy of page 1 of your federal return.

Line 36 — Unjust imprisonment compensation

Enter the amount of any compensation you were awarded by the Illinois Court of Claims for time unjustly served in an Illinois prison if it is included in your Form IL-1040, Line 1.

Line 37 — Distributions from "Bright Start," "College Illinois," and "Bright Directions" college savings plans

Enter the amount of distributions from the "Bright Start," "College Illinois," and "Bright Directions" college savings plans if you included them in your federal adjusted gross income because you claimed a federal American Opportunity Credit or Lifetime Learning Credit for the expenditures.

 

 


related articles

Article Details
Views: 1448 Created on: Jun 15, 2013
Date updated: Aug 20, 2015
Posted in: STATES, Illinois

Poor
Outstanding