Line 1 — Your child’s federally tax-exempt interest and dividend income
Write the amount of any federally tax-exempt interest and dividends earned by your child if you elected to report your child’s interest and dividend income on U.S. Form 8814, Parents’ Election To Report Child’s Interest and Dividends.
Line 2 — Distributive share of additions from a partnership, S corporation, estate, or trust
Include your distributive share of additions received from a partnership, S corporation, trust, or estate. The partnership, S corporation, trust, or estate is required to notify you of your share of this type of income. An Illinois entity will send you a Schedule K-1-P, Partner’s or Shareholder’s Share of Income, Deductions, Credits, and Recapture, or Schedule K-1-T, Beneficiary’s Share of Income and Deductions, specifically identifying your income.
Line 3 — Lloyds plan of operations loss
Add back any loss that you included in your adjusted gross income from a Lloyds plan of operation if that loss was reported on your behalf on Form IL-1023-C, Composite Income and Replacement Tax Return.
Line 4 — IRC Section 529 college savings plans earnings
Include earnings distributed from IRC Section 529 college savings and tuition programs if these earnings are not included in your adjusted gross income on Form IL-1040, Line 1.
Do not include earnings if they were rolled over tax-free into another program.
Also, do not include earnings received from the following, which are exempt from tax:
"Bright Start" College Savings Pool
"Bright Directions" College Savings Pool
"College Illinois" Prepaid Tuition Program
Qualified IRC Section 529 tuition programs that
comply with the College Savings Plans Network’s disclosure principles, and
annually inform Illinois residents and those distributing the program that in-state programs exist.
Line 5 — Special depreciation addition
Write the addition amount from Form IL-4562, Special Depreciation, Step 2, Line 4. See Form IL-4562 instructions for more information.
Do not include your distributive share of any special depreciation addition from a partnership, S corporation, trust, or estate on this line. Your distributive share of additions should be included on Schedule M, Line 2.
Line 6 — Business expense recapture (nonresidents only)
If you reported income from an asset or activity as business income in prior years and reported any income from that asset or activity as nonbusiness income on this Schedule M or on your Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax, for this year, include on this line all deductions you claimed for expenses connected with that income in this year and in your two most recent tax years.
Line 7 — Recapture of deductions for contributions to college savings plans transferred to an out-of-state plan
If you made a rollover from an Illinois plan to another state’s plan, write the smaller of
the amount of deductions you claimed for amounts contributed to an Illinois college savings plan, minus any deductions recaptured in prior years, or
the amount you transferred during the tax year from the Illinois plan to an out-of-state plan.
Line 8 — Credit for student-assistance contributions
Include any amount equal to the credit you received on Schedule 1299-C, Income Tax Subtractions and Credits (for individuals), for student-assistance contributions made as an employer on behalf of your employees for this tax year. This credit amount is 25% of the contribution for each employee, but cannot exceed $500 per employee.
Line 9 — Recapture of deductions for contributions to college savings plans withdrawn for nonqualified expenses or refunded
If you withdrew funds or received a refund of contributions from a qualified tuition program, the funds were not used for qualified expenses at an eligible institution, and the withdrawal or refund did not result from the death or disability of a beneficiary of the program, include the amount equal to the amount of deductions you claimed for contributions related to the nonqualified withdrawal or refund amount. Write the smaller of
the amount of deductions you claimed for amounts contributed to an Illinois college savings plan, minus any amount recaptured on Line 7 for this year and any deductions recaptured in prior years for that plan, or
the refund or amount you withdrew during the tax year that was not used for qualified expenses in an eligible institution plus any refund of contributions.
Line 10 — Other income
Include any other amounts that you are required to add to your federal adjusted gross income to arrive at your Illinois base income. Please include a detailed description of each addition on the line provided or on an attached statement.
Please review the Schedule M instructions for further updates and information.