Illinois Department of Revenue
                                                                          Use for tax year ending on or after 
                                                                          December 31, 2023, and before 
                                                                          December 31, 2024.
            IL-1041 Instructions                                                                                            2023

                 What’s New?                                              Table of Contents

•  The address change checkbox has been removed from Step 1,              What’s New? ........................................................ 1
    Line B, of the Form IL-1041.
•  A grantor trust checkbox has been added to Step 1, Line D, of the      General Information ............................................ 1
    Form IL-1041.
•  IL-4562 has been expanded and includes 60 percent bonus                Specific Instructions ........................................... 8
    depreciation.
•  Schedule D, Section B, has been reformatted from 4 columns to 3 
                                                                          Illinois Schedule D Instructions ....................... 17
    columns. 
•  Schedule M has been expanded and includes a new subtraction 
    line for cannabis establishments that had deductions disallowed       Appendix A - Extension Tax Payment 
    federally under IRC Section 280E.                                     Worksheet .......................................................... 20
•  Income Tax Credits -- Information about all the credits can be 
    found in Schedule 1299-I.                                             Appendix B - Tax Prepayment 
      • The following credits have updated expiration dates:              Worksheets ........................................................ 21
          • Historic Preservation tax credit (Credit Code 1030) - ending 
            on or before December 31, 2028
          • New Markets Development tax credit (Credit Code 5500) - 
            ending on or before June 30, 2031
      • No new credits will be issued for the:
          • Agritourism Liability Insurance income tax credit (Credit 
            Code 5440) for tax years ending after December 31, 2023
          • Invest in Kids credit (Credit Code 5660) for tax years ending 
            after December 31, 2023
  •     Illinois business payment vouchers are no longer year specific. 
        To avoid processing delays, taxpayers submitting paper 
        business vouchers to the Illinois Department of Revenue should 
        ensure that the month and year of their filing period are entered 
        on each voucher. Do not enter your estimated payment due date.

                                              General Information
Who must file Form IL-1041?                                                “Grantor” trusts are not required to file Form IL-1041. 
You must file Form IL-1041 if you are a fiduciary of a trust or           Estates do not pay replacement tax.
an estate, and the trust or the estate                                    If the trust or estate is a charitable organization exempt from 
•       has net income or loss as defined under the Illinois              federal income tax by reason of Internal Revenue Code 
        Income Tax Act (IITA), regardless of any deduction for            (IRC) Section 501(a), it is not required to file Form IL-1041. 
        distributions to beneficiaries; or                                However, unrelated business taxable income, as determined 
                                                                          under IRC Section 512, is subject to tax (without any 
•       is a resident of Illinois and files, or is required to file, a 
                                                                          deduction for the Illinois income tax) and must be reported 
        federal income tax return (regardless of net income or 
                                                                          on Form IL-990-T, Exempt Organization Income and 
        loss). (See “When is nonbusiness income allocable to 
                                                                          Replacement Tax Return, instead of Form IL-1041. For more 
        Illinois?” to help you complete your Form IL-1041); or
                                                                          information, see Form IL-990-T Instructions.
•       is a nonresident of Illinois but received income from 
        Illinois sources which was not reported as pass-through 
        withholding on Form IL-1120-ST, Small Business 
        Corporation Replacement Tax Return; Form IL-1065, 
        Partnership Replacement Tax Return; or Form IL-1041, 
        Fiduciary Income and Replacement Tax Return. You must 
        also file Illinois Schedule NR (Form IL-1041), Nonresident 
        Computation of Fiduciary Income, to determine the 
        income that is taxed by Illinois during the tax year. For 
        more information, see Illinois Schedule NR (Form IL-1041) 
        with revision date 12/23.
IL-1041 Instructions (R-12/23)              Printed by the authority of the state of Illinois - electronic only - one copy. Page 1 of 23

What forms must I use?                                           If an unpaid liability is disclosed when you file your return, 
In general, you must obtain and use forms prescribed             then you may owe penalty and interest charges in addition to 
by the Illinois Department of Revenue (IDOR). Separate           the tax. See the “What are the penalties and interest?” section 
statements not on forms provided or approved by IDOR             below. An extension of time to file your Form IL-1041 is 
will not be accepted and you will be asked for appropriate       not an extension of time for payment of Illinois tax.
documentation. Failure to comply with this requirement           Additional extensions beyond the automatic extension 
may result in failure to file penalties, a delay in the          period — We will grant an extension of more than six months 
processing of your return, or a delay in the generation of       only if an extension is granted by the Internal Revenue 
any overpayment. Additionally, failure to submit appropriate     Service (IRS) beyond the date of the Illinois automatic 
documentation when requested may result in a referral to our     extension. Your additional Illinois extension will be for the 
Audit Bureau for compliance action.                              length of time approved by the IRS. You must attach a copy of 
Trusts and Estates must complete Form IL-1041. Do                the approved federal extension to your Form IL-1041.
not send a computer printout with line numbers and dollar        When should I pay?
amounts attached to a blank copy of the return. Computer 
                                                                 Payment of tax — You must pay your Illinois Income and 
generated printouts are not acceptable, even if they are in the 
                                                                 Replacement Tax and pass-through withholding reported on 
same format as IDOR’s forms. Computer generated forms 
                                                                 behalf of your beneficiaries in full on or before the original 
from an IDOR-approved software developer are acceptable.
                                                                 due date of the return. Failure to pay the tax due on or before 
    Form IL-1041 (R12/23) is for tax year ending                 the original due date of the return may result in penalty and 
on or after December 31, 2023, and ending before                 interest. This payment date applies even though an automatic 
December 31, 2024. For tax year ending on or after               extension for filing the return has been granted. All payments 
December 31, 2022 and before December 31, 2023, use the          must be made using Form IL-1041-V, Payment Voucher for 
2022 form. Using the wrong form will delay the processing of     Fiduciary Income and Replacement Tax.
your return.
                                                                 Estimated tax payments — For state purposes, trusts 
How do I register my business?                                   and estates are not required to make estimated payments, 
If you are required to file Form IL-1041, you should register    although they may be required to make federal estimated 
with IDOR. You may register                                      payments. 
•  online with MyTax Illinois, our free online account           Extension Payments - If you expect tax to be due, you must 
   management program for taxpayers;                             pay any tentative tax due by the original due date of the return 
                                                                 using Form IL-1041-V. See Appendix A for more information. 
•  by completing Form REG-1, Illinois Business Registration 
   Application, and mailing it to the address on the form; or    Voluntary Prepayments - You may make voluntary 
                                                                 prepayments of your own tax liability as well as make 
•  by visiting a regional office.
                                                                 pass-through withholding prepayments on behalf of your 
Visit our website at tax.illinois.gov for more information.      beneficiaries using Form IL-1041-V. See Appendix B for more 
Registering with IDOR prior to filing your return ensures        information. 
that your tax returns are accurately processed. 
                                                                 We encourage you to make your payments electronically 
Your identification numbers as an Illinois business taxpayer     using MyTax Illinois or Modernized E-File (MeF) systems, 
are your federal employer identification number (FEIN) and       or you may use Form EFT-1, Authorization Agreement for 
your Illinois account number.                                    Certain Electronic Payments, to set up an ACH credit or 
When should I file?                                              phone debit transaction. These options can be found on 
                                                                 our website at tax.illinois.gov. If you make your payments 
Your Illinois filing due date is the same as your federal filing using MyTax Illinois, MeF, or EFT, do not mail us your 
due date. In general, Form IL-1041 is due on or before the       Form IL-1041-V. You must use one of our electronic payment 
15th day of the 4th month following the close of the tax year.   options if the IDOR has notified you that you are required to 
Automatic six-month extension — We grant you an                  make payments electronically.
automatic six-month extension of time to file your fiduciary     We will apply each payment to the earliest due date until 
tax return. The automatic extension of time to file is granted   that liability is paid, unless you provide specific instructions 
whether or not you request it. You are not required to file a    to apply it to another period. You may also be assessed a 
form in order to obtain this automatic extension. If you expect  bad check penalty if your remittance is not honored by your 
tax to be due, you must pay any tentative tax due, by the        financial institution.
original due date of the return, in order to avoid interest and 
penalty on tax not paid by that date. To pay any tax due by      Who should sign the return?
the original due date of your return:                            Your Form IL-1041 must be signed by the fiduciary of the 
•   visit tax.illinois.gov, for information about ACH credit,    trust or estate. If there are two or more joint fiduciaries, the 
•  pay using mytax.illinois.gov, or                              signature of one will comply with the requirements of the 
                                                                 IITA. The signature verifies by written declaration (and under 
•  mail Form IL-1041-V, Payment Voucher for Fiduciary            penalties of perjury) that the signing fiduciary has personally 
   Income and Replacement Tax, using the address on the 
                                                                 examined the return and the return is true, correct, and 
   form. 
                                                                 complete. The fact that a fiduciary’s name is signed to a return 
                                                                 is prima facie evidence that the fiduciary is authorized to sign 
                                                                 the return on behalf of the trust or estate.
IL-1041 Instructions (R-12/23)                                                                                  Page 2 of 23

Any person paid to prepare the return (other than a fiduciary     Request for prompt determination — You may make a 
of the trust or estate, or a regular, full-time employee of the   request for prompt determination of liability, in accordance 
taxpayer, such as a clerk, secretary, or bookkeeper) must         with IITA 35 ILCS 5/905(i), if you are an estate that has 
provide a signature, date the return, enter the preparer tax      terminated. A completed tax return must be on file with us 
identification number (PTIN) issued to them by the Internal       before you can submit a request for prompt determination. Do 
Revenue Service, and provide their firm’s name, FEIN,             not submit your return and request at the same time. Mail your 
address, and phone number.                                        initial return to the address indicated on the form. You should 
      If your return is not signed, any overpayment of tax is     allow 12 weeks for processing. If your request is properly 
considered forfeited if, after notice and demand for signature,   made, the expiration of the statute of limitations (absent 
you fail to provide a signature within three years from the date  fraud) will not extend beyond 18 months from the date of 
your return was filed.                                            your request. Mail your request and a copy of your previously 
                                                                  submitted return to:
What are the penalties and interest?                                ILLINOIS DEPARTMENT OF REVENUE
Penalties  — You will owe                                           PO BOX 19044
•  a late-filing penalty if you do not file a processable return    SPRINGFIELD IL 62794-9044
   by the extended due date;                                         The procedure described above does not apply to 
•  a late-payment penalty if you do not pay the tax you owe       11 U.S.C. Section 505 Determination of Tax Liability requests. 
   by the original due date of the return;                        What if I need to correct or change my return?
•  a bad check penalty if your remittance is not honored by 
                                                                  Do not file another Form IL-1041 with “amended” figures 
   your financial institution; 
                                                                  to change your originally filed Form IL-1041. If you need 
•  a cost of collection fee if you do not pay the amount you      to correct or change your return after it has been filed, you 
   owe within 30 days of the date printed on your bill.           must file Form IL-1041-X, Amended Fiduciary Income and 
Interest —Interest is calculated on tax from the day after the    Replacement Tax Return. Returns filed before the extended 
original due date of your return through the date you pay the     due date of the return are treated as your original return for 
tax.                                                              all purposes. For more information, see Form IL-1041-X 
We will bill you for penalties and interest. For more information Instructions.
about penalties and interest, see Publication 103, Penalties      You should file Form IL-1041-X only after you have filed 
and Interest for Illinois Taxes.                                  a processable Illinois Income Tax return. You must file a 
                                                                  separate Form IL-1041-X for each tax year you wish to 
What if I am discontinuing my business?
                                                                  change. 
Terminated — If you are the fiduciary of a trust or estate that 
                                                                  State changes only — File Form IL-1041-X promptly if you 
has terminated during any tax year, you are still required to 
                                                                  discover an error on your Illinois return that does not relate to 
file the tax return. Also, we will pursue the assessment and 
                                                                  an error on your federal return but rather was caused by
collection of taxes if
                                                                  • a mistake in transferring information from your federal 
•  the trust or estate was liable for income and replacement 
                                                                    return to your Illinois return;
   tax for that or any previous tax period; or,
                                                                  • failing to report or misreporting to Illinois an item that has 
•  the beneficiaries had income allocable to Illinois and 
                                                                    no effect on your federal return; or
   were liable for income and replacement tax for that or any 
   previous tax period, due to a distribution from the trust or   • a mistake in another state’s tax return that affects the 
   estate.                                                          computation of your Illinois tax liability.
Sales or transfers — If you are a fiduciary that, outside the     If you are claiming an overpayment, Form IL-1041-X must be 
usual course of business, sells or transfers the major part of    filed within three years after the extended due date or the date 
any one or more of                                                the return was filed, or within one year after the tax giving rise 
•  the stock of goods which you are in the business of            to the overpayment was paid, whichever is latest.
   selling,                                                       Federal changes only — File Form IL-1041-X if you have 
•  the furniture or fixtures of your business,                    filed an amended federal return or if you have been notified 
                                                                  by the IRS that they have made changes to your return. This 
•  the machinery and equipment of your business, or
                                                                  includes any change in your federal income tax liability, any 
•  the real property of your business,
                                                                  tax credit, or the computation of your federal taxable income 
you or the purchaser must complete and send us Form               as reported for federal income tax purposes, if the change 
CBS-1, Notice of Sale, Purchase, or Transfer of Business          affects any item entering into the computation of net income, 
Assets, no later than 10 business days prior to the date the      net loss, or any credit for any year under the IITA. You must 
sale takes place. Send this form, along with copies of the        file Form IL-1041-X no later than 120 days after the federal 
sales contract and financing agreement, to:                       changes have been agreed to or finally determined to avoid a 
   ILLINOIS DEPARTMENT OF REVENUE                                 late-payment penalty.
   BULK SALES UNIT
   PO BOX 19035                                                   If your federal change decreases the tax due to Illinois and 
   SPRINGFIELD IL  62794-9035                                     you are entitled to a refund or credit carryforward, you must 
or                                                                file Form IL-1041-X within two years plus 120 days of federal 
   REV.BulkSales@illinois.gov                                     finalization.

IL-1041 Instructions (R-12/23)                                                                                     Page 3 of 23

Attach a copy of federal finalization or proof of acceptance      If you need more information about Illinois NLDs see the 
from the IRS along with a copy of your amended federal form,      Schedule NLD Instructions or 86 Ill. Adm. Code Sections 
if applicable, to your Form IL-1041-X. Examples of federal        100.2050 and 100.2300 through 100.2330.
finalization include a copy of one or more of the following 
                                                                  What are the limitations of the Illinois NLD?
items:
                                                                  For tax years 
• your federal refund check,                                                    ending on or after December 31, 2021, Illinois 
                                                                  net losses cannot be carried back and can only be carried 
• your audit report from the IRS, or                              forward for 20 tax years. 
• your federal transcript verifying your federal taxable          For tax years ending on or after December 31, 2003, and 
  income.                                                         before December 31, 2021, Illinois net losses can no longer 
          For amended tax returns filed on or after January       be carried back, and can only be carried forward for 12 years. 
1, 2024, a late payment penalty will be assessed for              However, the carryover period of any net loss that has not 
any amended return not filed and the resulting liability          expired as of November 16, 2021, shall be extended from 
not paid within 120 days of the federal change. See               12 years to 20 years. 
35 ILCS 735/3-3(b-25) for more information.
                                                                  For tax years ending on or after December 31, 1999, 
What records must I keep?                                         and before December 31, 2003, all Illinois net losses 
You must maintain books and records to substantiate any           must be carried back two years (unless an election to only 
information reported on your Form IL-1041. Your books and         carryforward is made) then forward 20 years. The election 
records must be available for inspection by our authorized        to carry a loss forward only was made by checking the 
agents and employees.                                             appropriate box on the original or amended loss-year return, 
                                                                  whichever showed the loss first. Once the election was made 
Do IDOR and the IRS exchange income tax                           to forgo the Illinois carryback provision, the election was 
information?                                                      irrevocable. 
IDOR and the IRS exchange income tax information for the          Illinois net losses in tax years ending before 
purpose of verifying the accuracy of information reported on      December 31, 1999, are allowed as a carryback or 
federal and Illinois tax returns. All amounts you report on       carryforward deduction only in the manner allowed under 
Form IL-1041 are subject to verification and audit.               IRC Section 172, including, for example, the 10-year 
Should I round?                                                   carryback allowed to banks for bad debt losses.
You must round the dollar amounts on Form IL-1041 and             The following are the carryback and carryforward years 
accompanying schedules to whole-dollar amounts. To do this,       generally allowed for Illinois net losses in tax years ending 
you should drop any amount less than 50 cents and increase        before December 31, 1999. Illinois net losses in tax years 
any amount of 50 cents or more to the next higher dollar.         beginning
                                                                  •  after August 5, 1997, and ending before 
What if I have an Illinois net loss deduction (NLD)?
                                                                     December 31, 1999, must be carried back two years, then 
An Illinois net loss deduction (NLD) can be used to reduce           forward 20 years.
the base income allocable to Illinois only if the loss year       •  on or before August 5, 1997, must be carried back three 
return has been filed and to the extent the loss was not used        years, then forward 15 years.
to offset income from any other tax year. Use Schedule NLD, 
Illinois Net Loss Deduction, to determine any NLD.                    For tax years ending on or after December 31, 1996, 
                                                                  and before December 31, 2003, you may have made the 
To determine your “Illinois net loss” start with federal taxable  election to forgo any of the previously mentioned Illinois 
income and apply all addition and subtraction modifications       NLD carryback periods by checking the appropriate box on 
and all allocation and apportionment provisions.                  your loss year return. This election must have been made 
In order to have any available NLD applied to your return, you    by the extended due date of your return and once made was 
must claim the deduction on Step 4, Line 30. See the specific     irrevocable for that tax year.
instructions for Step 4, Line 30.                                 In addition, the special carryover periods in IRC Section 172, 
If you have an Illinois net loss for this tax year, you must file as in effect for a particular tax year, would apply to losses 
Form IL-1041 reporting the loss in order to carry the loss        incurred in that year. For example, a “specified liability loss” 
forward to another year.                                          incurred in 1998 may be carried back 10 years under IRC 
If corrections have been made to the loss amount                  Section 172(b)(1)(c).
(e.g., federal audit or amended return), you must report the      Also, no limitations under IRC Section 382 or the separate 
corrected amount when you file.                                   return limitation year provisions of the federal consolidated 
          Ensure you have filed returns for all periods in which  return regulations apply to any NLD carryover.
you were required to file an Illinois return. Unfiled returns may 
result in disallowed losses, processing delays, and further 
correspondence from IDOR. 

IL-1041 Instructions (R-12/23)                                                                                           Page 4 of 23

What if I have a discharge of indebtedness?                           If you are required to attach any Schedule(s) K-1-T, 
                                                                      Beneficiary’s Share of Income and Deductions, only attach 
If you had discharge of indebtedness income for a taxable 
                                                                      Schedule(s) K-1-T you received which lists your name and 
year ending on or after December 31, 2008, and all or a 
                                                                      FEIN in Step 2 of Schedule K-1-T. Do not attach copies of 
portion of this income was excluded from your federal gross 
                                                                      Schedule(s) K-1-T you issued and which lists your name and 
income due to bankruptcy or insolvency, then you may be 
                                                                      FEIN in Step 1 of Schedule K-1-T.
required to reduce either or both (i) the net operating loss 
incurred in the taxable year of the discharge, and (ii) any net          When filing your Form IL-1041 include only forms 
operating loss carryovers to the taxable year of the discharge.       and schedules required to support your return. Send 
If you were required to reduce a federal net operating loss           correspondence separately to: 
in the year of the discharge, you may have been required to             ILLINOIS DEPARTMENT OF REVENUE
reduce any Illinois net loss you incurred for the same year.            TAXPAYER CORRESPONDENCE
This reduction is made on the Illinois income tax return you            PO BOX 19044
                                                                        SPRINGFIELD IL  62794-9044
filed for the loss year using the Loss Reduction Worksheet 
on Page 11 of these instructions. If you are a corporation            Definitions to help you complete your Form IL-1041.
(other than an S corporation) or trust and you were required          Resident means
to reduce or eliminate a federal net operating loss carryover         • an individual who is present in Illinois for other than a 
because you had discharge of indebtedness income, you may               temporary or transitory purpose;
be required to reduce or eliminate your Illinois net operating 
                                                                      • an individual who is absent from Illinois for a temporary or 
loss carryovers. This reduction is calculated on the Discharge 
                                                                        transitory purpose but who is domiciled in Illinois;
of Indebtedness Worksheet on Schedule NLD. Attach a 
copy of your federal Form 982, Reduction of Tax Attributes            • the estate of a decedent who at his or her death was 
Due to Discharge of Indebtedness, to your return. For more              domiciled in Illinois;
information, see 86 Ill. Adm. Code Section 100.2310(c).               • a trust created by a will of a decedent who at his or her 
                                                                        death was domiciled in Illinois; or
What is the standard exemption?
                                                                      • an irrevocable trust, whose grantor was domiciled in 
The standard exemption is $1,000. If you have a change in               Illinois at the time the trust became irrevocable. For 
your tax year end, and the result is a tax period of less than          purposes of this definition, a trust is irrevocable to the 
12 months, the standard exemption is prorated based on                  extent that the grantor is not treated as the owner of the 
the number of days in the short tax year. However, if this is           trust under IRC Sections 671 through 678. For a more 
your first or final return, you are allowed to use the full-year        detailed explanation of “domicile” and “resident,” see 
standard exemption even if it is a short tax year. If you are           Form IL-1040 Instructions, Illinois Individual Income Tax 
a nonresident, you must use Schedule NR (Form IL-1041)                  Return, General Information.
to compute your exemption allowance. If you need further 
information, see the 35 ILCS 5/401(b).                                Nonresident means a person who is not a resident of Illinois, 
                                                                      as defined previously.
 For tax years beginning on or after January 1, 2017, 
the standard exemption may not be claimed if the taxpayer’s              In the following definitions, all references to “income” 
adjusted gross income for the taxable year is $250,000 or             include losses.
more. See specific instructions for more information.                 Illinois base income is your federal taxable income, plus 
                                                                      any additions on Lines 2 through 10, less any subtractions on 
What attachments do I need?                                           Line 25. See specific instructions for Steps 2 and 3. 
When filing your return there are certain types of income items       Business income means all income (other than 
and subtraction modifications that require the attachment             compensation) that may be apportioned by formula among 
of Illinois or federal forms and schedules. Breakdowns,               the states in which you are doing business without violating 
statements, and other documentation may also be required.             the Constitution of the United States. All income of a trust or 
Instructions for these attachments appear throughout the              estate is business income unless it is clearly attributable to 
specific instructions for completing your return.                     only one state and is earned or received through activities 
 All Illinois forms and schedules include an                          totally unrelated to any business you are conducting in more 
“IL Attachment No.” in the upper right corner of the form.            than one state. Business income is net of all deductions 
Required attachments should be ordered numerically behind             attributable to that income.
the tax return, as indicated by the IL Attachment No. Failure to      Nonbusiness income means all income other than 
attach forms and schedules in the proper order may result in          business income or compensation. For more information 
processing delays.                                                    about the different types of nonbusiness income, see  Illinois 
Required copies of documentation from your federal return             Schedule NB Instructions.
or other sources should be attached behind the completed              A pass-through entity is any entity treated as a partnership, 
Illinois return.                                                      subchapter S corporation, or trust for federal income tax 
You must attach a copy of your U.S. Form 1041, Pages 1                purposes.
and 2, to your Illinois return if you are required to file federally. Pass-through entity income is the income that any 
Schedule D, Beneficiary Information, must be completed and            partnership, subchapter S corporation, or trust passes through 
attached to all Form IL-1041 filings.                                 to its partners, shareholders, or beneficiaries.

IL-1041 Instructions (R-12/23)                                                                                              Page 5 of 23

PTE tax is an amount equal to 4.95 percent (.0495) of the         All residents and pass-through entities must file their own 
taxpayer’s calculated net income for the tax year paid by a       annual Illinois Income Tax return to claim a credit for any 
partnership (other than a publicly traded partnership under       pass-through withholding reported to them.
Section 7704 of the Internal Revenue Code) or subchapter               Beginning with tax years ending on or after 
S corporation who elects to pay the tax for taxable years         December 31, 2023, investment partnerships are required to 
ending on or after December 31, 2021, and beginning prior to      withhold an amount for their nonresident partners. Investment 
January 1, 2026.                                                  partnerships will use the pass-through withholding line 
PTE tax credit is the distributive share of the credit allowed    of Schedule K-1-P (Step 7, Line 55) to report investment 
as a result of a partnership or S corporation having elected to   partnership withholding credit. Trusts and estates will treat 
pay the PTE tax.                                                  the investment partnership withholding credit the same as the 
                                                                  pass-through withholding credit. See Schedule K-1-P(2) for 
PTE tax credit                                                    more information.
• distributed to your beneficiaries is reported on                When is business income allocable to Illinois? 
  Schedule K-1-T, Line 50.
                                                                  If the trust or estate is a resident, all income received, 
• retained by the fiduciary is reported on Form IL-1041,          regardless of source, is allocable to Illinois.
  Line 55d.
                                                                  If the trust or estate is a nonresident and business income is 
Pass-through withholding is the amount required to be             derived 
reported and paid by the pass-through entity on behalf of its 
nonresident partners, shareholders, and beneficiaries             • wholly inside Illinois, the entire amount of business 
                                                                    income is allocable to Illinois;
• who have not submitted Form IL-1000-E, Certificate 
  of Exemption for Pass-through Withholding, to the               • wholly outside of Illinois, none of the business income is 
  pass-through entity, and                                          allocable to Illinois;
• who receive business and nonbusiness income from the            • inside and outside of Illinois, complete Illinois 
  pass-through entity.                                              Schedule NR (Form IL-1041), Step 6. See the instructions 
                                                                    for Illinois Schedule NR (Form IL-1041), Step 6.
Pass-through withholding is
                                                                  • from subchapter S corporations, partnerships, and other 
• reported to your beneficiaries on the Schedule K-1-T you          fiduciaries, the business income may be allocable to 
  send to them,                                                     Illinois. See the Illinois Schedule(s) K-1-P, furnished by 
• reported to IDOR on your Form IL-1041 and Illinois                the subchapter S corporation or partnership or the Illinois 
  Schedule D, and                                                   Schedule(s) K-1-T furnished by the other fiduciary to 
• paid with your return or voluntarily prepaid with                 determine what income is allocable to Illinois.
  Form IL-1041-V.
                                                                  When is nonbusiness income allocable to Illinois? 
   If any of your beneficiaries are pass-through entities 
themselves, they are required to report and pay pass-through      If the trust or estate is a resident, all nonbusiness income is 
withholding on behalf of their own nonresident partners,          allocable to Illinois.
shareholders, or beneficiaries on the income you passed           If the trust or estate is a nonresident, items of income and 
through. Your beneficiaries may claim a credit on their Illinois  deduction which constitute nonbusiness income are allocable 
Income Tax return for pass-through withholding you reported       to Illinois according to the following rules:
and paid on their behalf.                                         • Interest and dividend income received by a nonresident 
Trusts can both make and receive pass-through withholding.          trust or estate is not allocable to Illinois. 
Estates can receive pass-through withholding.                     • Net rents and royalties 
• Pass-through withholding you owe on behalf of your                Real property — Rents and royalties from real property 
  beneficiaries is a payment of pass-through withholding            are allocable to Illinois if the property is located in Illinois.
  you make on behalf of your nonresident beneficiaries 
                                                                    Tangible personal property — Rents and royalties from 
  who have not submitted Form IL-1000-E to you. This 
                                                                    tangible personal property are allocable to Illinois to the 
  amount will be reported on Form IL-1041, Line 53. 
                                                                    extent the property is used in Illinois. The extent of use 
• Pass-through withholding reported to you is a                     of tangible personal property in a state is determined 
  credit for pass-through withholding you receive on                by multiplying the rents and royalties derived from the 
  Schedules K-1-P and K-1-T as a partner, shareholder, or           property by a fraction, in which the numerator is the 
  beneficiary of a pass-through entity. This amount will be         number of days the property is located in the state during 
  reported on Form IL-1041, Line 55c.                               the rental and royalty period in the tax year and the 
If you are a nonresident and the pass-through withholding           denominator is the total number of days during all rental or 
reported to you satisfies your Illinois Income Tax liability, you   royalty periods in the tax year.
are not required to file an Illinois Income Tax return. If you    • Patent and copyright royalties are allocable to Illinois to 
had Illinois income from other sources and the pass-through         the extent the patent or copyright is used in Illinois. 
withholding made on your behalf does not cover your liability, 
                                                                    A patent is used in Illinois to the extent that it is employed 
you must file a return to report the tax on all of your Illinois 
                                                                    in production, fabrication, manufacturing, or other 
income and claim a credit for pass-through withholding made 
                                                                    processing in Illinois or to the extent that a patented 
on your behalf. 
                                                                    product is produced in Illinois.
IL-1041 Instructions (R-12/23)                                                                                        Page 6 of 23

  Acopyright is used in Illinois to the extent that printing or   completed Illinois Schedule K-1-T and a copy of the Illinois 
  other publication originates in Illinois.                       Schedule K-1-T(2), Beneficiary’s Instructions, to each 
• Gains and losses from sales or exchanges of real or             beneficiary. Do not file copies of Illinois Schedule K-1-T 
  tangible property are in Illinois if the property is located in that you issued to your beneficiaries with your 
  Illinois at the time of the sale or exchange. Gains or losses   Form IL-1041. However, you must keep a copy of each 
  from the sale or exchange of intangible personal property       Illinois Schedule K-1-T with your tax records. See Illinois 
  are not allocable to Illinois.                                  Schedule K-1-T(1), Instructions for Trusts and Estates 
                                                                  Completing Schedule K-1-T and Schedule K-1-T(3), for more 
• Income from subchapter S corporations, partnerships             information.
  and other fiduciaries paid to the trust or estate is 
  allocable to Illinois as if the trust or estate received it     Trusts only -You must use Illinois Schedule K-1-T(3), 
  directly. See the Illinois Schedule(s) K-1-P furnished by       Pass-through Withholding Calculation for Nonresident 
  the subchapter S corporation or partnership or the Illinois     Members, to calculate the required tax you must report 
  Schedule(s) K-1-T furnished by the other fiduciary to           and pay on behalf of your nonresident beneficiaries who 
  determine what income is allocable to Illinois.                 receive business or nonbusiness income from you. You must 
                                                                  complete the schedule if you have business or nonbusiness 
• Illinois state lottery winnings, and proceeds from 
                                                                  income distributable to Illinois nonresident beneficiaries who 
  sales or other transfers of rights to lottery winnings          have not provided you with Form IL-1000-E. You are required 
  received by a nonresident fiduciary are allocable to Illinois. 
                                                                  to complete Schedule K-1-T(3) for each such beneficiary and 
• Gross receipts of winnings from sports wagering                 keep a copy of the completed schedule in your files. Do not 
  conducted in accordance with the Sports Wagering Act for        submit Schedule K-1-T(3) to IDOR unless we request it 
  taxable years ending on or after December 31, 2021, are         from you. The information entered on this schedule will assist 
  allocable to Illinois.                                          you in completing Illinois Schedule D. See Schedule K-1-T(1) 
• Other unspecified items of income or deduction of a             for more information.
  nonresident taxpayer are not allocable to Illinois.             You must use Illinois Schedule D to supply us with a 
What does taxable in other states mean?                           listing of your beneficiaries, certain items of income, and 
                                                                  pass-through withholding you made on their behalf. You must 
Taxable in other states means you are subject to and actually     complete all lines of Illinois Schedule D, as applicable, and file 
pay “tax” in another state. “Tax” means net income tax,           it with your Form IL-1041.
franchise tax measured by net income, or franchise tax for 
the privilege of doing business. You are considered taxable in    What if the trust makes an accumulation or capital 
another state if that state has jurisdiction to subject you to a  gain distribution?
net income tax, even though that state does not impose such       If the trust makes an accumulation distribution or a capital 
a tax. This definition is for purposes of allocating nonbusiness  gain distribution (both as defined in IRC Section 665), 
income and apportioning business income inside or outside         the portion of the distribution included in the income of a 
Illinois.                                                         nonresident or part-year resident beneficiary (under IRC 
What is the fiduciary’s share or beneficiary’s share              Sections 668 and 669) is taxable to the extent that the trust 
of income?                                                        income was allocable to Illinois before distribution.
The fiduciary’s share of an item of income or deduction is        What if I participated in a reportable transaction?
that amount required to be taken into account in computing        If you participated in a reportable transaction, including a 
fiduciary taxable income for federal income tax purposes          “listed transaction,” during this tax year and were required to 
for the tax year and is not paid, credited, or required to        disclose that transaction to the IRS, you are also required to 
be distributed to the beneficiaries of the trust or estate for    disclose that information to Illinois.
that year. The fiduciary’s share of each of the addition and 
                                                                  You must send us two copies of the form used to disclose the 
subtraction items required under the IITA is that part of each 
                                                                  transaction to the IRS.
item that relates and is attributable to the fiduciary’s share of 
the items of income and deduction.                                • Mail the first copy of the federal disclosure statement to:
                                                                    ILLINOIS DEPARTMENT OF REVENUE
The beneficiary’s share of each of the items is the amount          PO BOX 19029
that was properly paid, credited, or required to be distributed     SPRINGFIELD IL  62794-9029
to the beneficiary for the tax year. The items of income and 
                                                                  • Attach the second copy to your Illinois Income Tax return 
deduction and the additions and subtractions that are deemed 
                                                                    for the tax year that the IRS disclosure was required. Mail 
to have been paid, credited, or distributed must be taken into 
                                                                    the second copy and your Illinois Income Tax return to the 
account by the beneficiaries in proportion to their respective 
                                                                    address shown on your return. Do not mail the second 
shares of the distributable net income.
                                                                    copy and your Illinois Income Tax return to the address 
When must I use Illinois Schedules K-1-T, K-1-T(3),                 listed above.
and D?
You must use Illinois Schedule K-1-T to supply each 
beneficiary with that individual’s or entity’s share of the 
amounts reported on your federal and Illinois tax returns. 
For Illinois Income Tax purposes, you must give a 
IL-1041 Instructions (R-12/23)                                                                                         Page 7 of 23

What if I need additional assistance or forms?                   Where should I file?
•    For assistance, forms, or schedules, visit our website at   •  If a payment  isenclosed with your return, mail your 
     tax.illinois.gov or scan the QR code provided.                 Form IL-1041 to
                                                                    ILLINOIS DEPARTMENT OF REVENUE
                                                                    PO BOX 19053
                                                                    SPRINGFIELD IL  62794-9053
                                                                 •  If a payment is not enclosed, mail your Form IL-1041 to:
                                                                    ILLINOIS DEPARTMENT OF REVENUE 
                                                                    PO BOX 19009
                                                                    SPRINGFIELD IL  62794-9009
•    Write us at: 
     ILLINOIS DEPARTMENT OF REVENUE
     PO BOX 19001
     SPRINGFIELD IL  62794-9001
•    Call 1 800 732-8866 or 217 782-3336 (TTY at 
     1 800 544-5304). 
•    Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. 
     (Springfield office) and 8:30 a.m. to 5:00 p.m. (all other 
     offices), Monday through Friday. 

                                          Specific Instructions
Specific instructions for most of the lines are provided on the  F — Indicate your method of accounting by checking the 
following pages. If a specific line is not referenced, follow    appropriate box. You must use the same accounting method 
the instructions on the form.                                    (e.g., cash or accrual) and tax year that you used for federal 
Step 1 — Identify your fiduciary                                 income tax purposes.
A — All taxpayers: Type or print your legal business             G — Enter your entire federal employer identification number 
name. If you have a name change from last year, check the        (FEIN). A partial FEIN will delay the processing of your return. 
corresponding box.                                               H — If you are required to disclose reportable transactions 
B — Type or print your mailing address.                          and you have attached federal Form 8886, check the box. 
                                                                 See “What if I participated in a reportable transaction?” for 
      Any related correspondence issued by IDOR will be          more information.
mailed to the address entered on Step 1, Line B.
                                                                 I — If your residency is not in Illinois, check the box and attach 
C — Indicate if you are a trust or an estate by checking the     a completed Illinois Schedule NR (Form IL-1041) to your tax 
appropriate box.                                                 return.
Note: If you are filing a qualified revocable trust who has      J — If you earned or can carryforward credits on Illinois 
made a federal Section 645 election, you must mark the           Schedule 1299-D, Income Tax Credits (for corporations and 
estate box.                                                      fiduciaries), check the box and attach Illinois Schedule 1299-D 
D — Indicate if you are an Electing Small Business Trust         and any other required support listed on Schedule 1299-D 
(ESBT), an individual bankruptcy estate, a complex trust or      to your tax return, even if you are unable to use any of the 
estate without distributions, or a grantor trust by checking the credits in this tax year.
appropriate box or boxes (you may check more than one).          K — If you are claiming a special depreciation addition or 
      You may only indicate you are an                           subtraction modifications on Form IL-1041, check the box and 
•    ESBT or grantor trust if you checked the “Trust” box on     attach Form IL-4562, Special Depreciation, to your tax return.
     Step 1, Line C; or                                          L — If you are claiming other addition or subtraction 
•    individual bankruptcy estate if you checked the “Estate”    modifications on Form IL-1041, check the box and attach 
     box on Step 1, Line C.                                      Schedule M, Other Additions and Subtractions (for 
                                                                 businesses), to your tax return.
      For individual bankruptcy estates, Illinois follows 
the federal filing procedures. You should complete               M — If you are claiming related-party expense modifications 
Form IL-1040, Individual Income Tax Return, and carry            on your Form IL-1041, check the box and attach 
the tax amount to Step 6 of Form IL-1041 and check the           Schedule 80/20, Related-Party Expenses, to your tax return.
Individual Bankruptcy box. On the top of Form IL-1040,           N — Check the box and attach a detailed statement if you 
write “Individual Bankruptcy Estate. Do not detach.”             must adjust your loss or loss carryover due to Discharge of 
Attach Form IL-1040 to the back of Form IL-1041.                 Indebtedness. For more information, see the instructions for 
E — If this is your first or final return, check the             Line 28, the Loss Reduction Worksheet on Page 11 of these 
appropriate box and the box on Line 58 if you have a credit      instructions, Schedule NLD, and Schedule NLD Instructions.
carryforward on your final return.  

IL-1041 Instructions (R-12/23)                                                                                         Page 8 of 23

O — Check this box if you are a 52/53-week filer.                 Line 7 — Enter the addition amount calculated on 
A 52/53-week filer is a fiscal filer with a tax year that varies  Form IL-4562, Step 2, Line 4. For more information, see 
from 52 to 53 weeks because their tax year ends on the same       Form IL-4562 and Instructions. Attach Form IL-4562 to your 
day of the week instead of the last day of the month.             Form IL-1041. 
         You must complete an IDOR-issued or previously            The sum of the amounts reported in columns A and 
approved Form IL-1041 and corresponding schedules.                B of this line should match the total amount reported on 
Do not send a computer printout or spreadsheets with line         Form IL-4562, Step 2, Line 4.
numbers and dollar amounts attached to a blank copy of the        Line 8 — Enter the interest or intangible expenses, or 
return.                                                           insurance premiums paid to an affiliated company, to the 
Step 2 — Figure your income or loss                               extent these expenses exceed any taxable dividends you 
Line 1 — Enter the amount from U.S. Form 1041, Line 23.           received from the affiliated company. To compute the amount 
Attach a copy of your federal return.                             of this addition, complete Step 2 of Illinois Schedule 80/20, 
                                                                  and enter on Line 8 the total from Illinois Schedule 80/20, 
         Do not include any capital gains on the lump-sum 
                                                                  Step 2, Line 9. Attach Illinois Schedule 80/20 to your 
distribution from a retirement plan that you reported on 
                                                                  Form IL-1041.
your federal Form 4972, instead of on Line 8 of your U.S. 
Form 1041.                                                         The sum of the amounts reported in columns A and B 
                                                                  of this line should match the total amount reported on Illinois 
          Under federal law, Paycheck Protection Program 
                                                                  Schedule 80/20, Step 2, Line 9.
(PPP) loan forgiveness is not considered taxable income and 
the business expenses covered by the PPP loan proceeds are        Some interest and intangible expenses may be exempt 
deductible business expenses. Currently, Illinois tax law has     from this add-back provision. See Illinois Schedule 80/20 
no addition modification to change this; therefore, the same      Instructions for more information including definitions of 
treatment flows through to the Illinois return and is included as “affiliated company,” “intangible expenses,” and “intangible 
part of federal taxable income.                                   assets.”
Line 2 through 10 — Do not enter negative amounts on              Line 9 — If you are a beneficiary in another trust or 
Lines 2 through 10. If you are claiming over-accrued taxes,       estate, a partner in a partnership, or a shareholder in a 
include them on Schedule M (for business), Line 24.               subchapter S corporation, include your distributive share 
                                                                  of additions received from the trust, estate, partnership, or 
Line 2 — Enter the amount of net operating loss deduction 
                                                                  subchapter S corporation on Schedules K-1-P or K-1-T. If 
from U.S. Form 1041, Line 15b.
                                                                  you receive multiple schedules because you are a recipient 
Line 3 — If you are an Electing Small Business Trust (ESBT),      from multiple entities, you should enter the combined 
and your net taxable income from subchapter S corporations        total of Step 5, Column A, Lines 32 through 37, from all 
is positive, enter that figure here. Also, you should include     Illinois Schedules K-1-P you receive and Step 5, Column A, 
the amounts applicable from this trust in your addition and       Lines 30 through 35, from all Illinois Schedules K-1-T you 
subtraction modifications. Attach a breakdown worksheet           receive. Attach a copy of all Illinois Schedules K-1-P and 
explaining each amount. If your net taxable income from           K-1-T to your Form IL-1041.
subchapter S corporations is a loss, report it on Line 23.
                                                                   The trust or estate is required to send you 
Line 4 — Enter the exemption amount from your                     an Illinois Schedule K-1-T and Schedule K-1-T(2), 
U.S. Form 1041, Line 21. If you are a qualified disability trust, Beneficiary’s Instructions, and the partnership or 
enter $100 or the amount of your exemption, whichever is          subchapter S corporation is required to send you an Illinois 
less.                                                             Schedule K-1-P and Schedule K-1-P(2), Instructions for 
Lines 5 through 10 - Addition Modifications — Any addition  Partnerships and S Corporations Completing Schedule K-1-P, 
modification required in the computation of base income           and Schedule K-1-P(3), specifically identifying your share of 
should be adjusted by any amount permanently set aside for        income.
charitable purposes pursuant to IRC Section 642(c).                            Include only additions reported to you on the 
Enter the addition modifications in Column A if the item is       Schedule(s) K-1-P or K-1-T you received from a pass-through 
included in figuring your beneficiaries’ income.                  entity in which you are an investing partner or shareholder or 
Enter the addition modifications in Column B if the item is       a beneficiary. Do not attach copies of Schedules K-1-T you 
included in figuring your income.                                 issued to your beneficiaries. You should keep copies of these 
                                                                  schedules in your records. 
Line 5 — You must add back any amount of Illinois Income 
and Replacement taxes and surcharge that you deducted on          Line 10 — Enter the addition amount calculated on Illinois 
your U.S. Form 1041 to arrive at your federal taxable income.     Schedule M, Step 2, Line 11. Attach a copy of Illinois 
You are not required to add back taxes from other states that     Schedule M to your Form IL-1041. 
you included as a federal deduction.                               The sum of the amounts reported in columns A and B 
Line 6 — Enter the total of all amounts excluded from federal     of this line should match the total amount reported on Illinois 
taxable income that were received or accrued as interest          Schedule M, Step 2, Line 11.
during the tax year.                                              The following are examples of items that must be added to 
                                                                  taxable income and are included on the Illinois Schedule M.

IL-1041 Instructions (R-12/23)                                                                                          Page 9 of 23

•  Notes, bonds, debentures, or obligations issued by the      •  an Individual Retirement Account (IRA), a self-employed 
   Governments of Guam, American Samoa, Puerto Rico,              retirement plan (SEP), or a 401(k) plan.
   the Northern Mariana Islands, or the Virgin Islands.        •  a lump-sum distribution of cash or property from a 
•  Lloyd’s plan of operations loss if reported on your behalf     qualified plan (e.g., employer securities or retirement 
   on Form IL-1065, Partnership Replacement Tax Return,           income, endowment or life insurance contracts). Report 
   and included in your federal taxable income.                   the total distribution treated as long-term capital gain 
•  Nonresidents only: Business Expense Recapture -                shown on federal Schedule D plus any amount treated 
   Deductions you claimed this year and in your two most          as ordinary income and included in U.S. Form 1041, 
   recent tax years for expenses connected with income            Line 8. Attach a copy of federal Schedule D and 
   from an asset or activity which were reported as business      U.S. Form 1041, Page 1, and supporting schedule for 
   income in prior years and as nonbusiness income on             Line 8.
   this return. This recapture should be allocated to the      •  the redemption of U.S. Retirement Bonds. Attach a copy 
   fiduciary to the extent the business expenses were             of U.S. Form 1041, Page 1, and supporting schedule 
   allocated to the fiduciary in the year they were deducted.     for Line 8.
   See Illinois Schedule NR (Form IL-1041) and Illinois        •  gain on the sale or exchange of employer securities. 
   Schedule NR (Form IL-1041) Instructions for more               Complete Form IL-4644, Gains from Sales of Employer’s 
   information.                                                   Securities Received from a Qualified Employee Benefit 
•  Any other state’s income tax deducted from federal             Plan, to compute the subtraction. Attach Form IL-4644 to 
   taxable income, if a corresponding credit is claimed on        your Form IL-1041.
   Illinois Schedule CR (Form IL-1041), Credit for Tax Paid          Do not subtract any capital gains on the lump-sum 
   to Other States. Only add back the taxes for which you      distribution from a retirement plan that you reported on 
   are claiming a credit.                                      your federal Form 4972, rather than on U.S. Form 1041, 
•  The smaller of any capital loss on U.S. Form 1041, Line 4   Line 8. These amounts are excluded from your federal 
   that you may carryforward or any negative amount on         taxable income on Form IL-1041, Line 1, and cannot be 
   U.S. Form 1041, Line 22.                                    subtracted.
Step 3 — Figure your base income or loss                                   You must notify each beneficiary of his or 
                                                               her share of any amount included on Line 14, Column A, 
Lines 13 through 25 - Subtraction Modifications — Do not 
                                                               that is attributable to a capital gain distribution or to a gain 
enter negative amounts on Lines 13 through 25. 
                                                               realized on the disposition of employer securities. You must 
Any subtraction modification required in the computation       also advise the beneficiary that his or her share of any 
of base income should be adjusted by any amount                such amount is to be reported only if he or she is limiting 
permanently set aside for charitable purposes pursuant to      capital gain on the disposition of property acquired before 
IRC Section 642(c).                                            August 1, 1969, on Illinois Schedule F. If the beneficiary is 
Enter the subtraction modifications in Column A if the item is an individual, he or she will include the amount on Illinois 
included in figuring your beneficiaries’ income.               Schedule F (Form IL-1040), Line 13. If the beneficiary is a 
Enter the subtraction modifications in Column B if the item is trust or estate, the fiduciary will include the amount on Illinois 
included in figuring your income.                              Schedule F (Form IL-1041), Line 14.
A double deduction is prohibited by IITA Section 203(g). You   Line 15 — Enter the total interest received or accrued from 
cannot deduct the same item more than once when figuring       U.S. Treasury bonds, notes, bills, federal agency obligations, 
your subtractions.                                             and savings bonds that is included in your federal taxable 
                                                               income. You may not subtract anything that is not identified 
Line 13 — Enter the amount from Illinois Schedule F 
                                                               in Illinois Publication 101, Income Exempt from Tax. This 
(Form IL-1041), Gains from Sales or Exchanges of Property 
                                                               amount is net of any bond premium amortization deducted 
Acquired Before August 1, 1969, Line 18. Capital gain, or 
                                                               federally.
Section 1245 or 1250 gain, on property acquired before 
August 1, 1969, may be limited by the value of the property    Line 16 — Enter any retirement payments to retired partners 
on August 1, 1969. See Illinois Schedule F for instructions.   that were received by the trust or estate and excluded 
Attach Illinois Schedule F, and a copy of federal              in computing net earnings from self-employment by IRC 
Schedule D (or federal Form 8949), federal Form 4797,          Section 1402.
and federal Form 6252, if filed.                                     You must attach Illinois Schedule 1299-B, 
       Do not enter an amount on Line 13a.                     River Edge Redevelopment Zone or Foreign Trade Zone 
                                                               (or sub-zone) Subtractions, to your Form IL-1041 if you 
Line 14 — Enter the federally taxed portion of any qualified 
                                                               have an amount on Lines 17 and 18.
distribution received from
                                                               Line 17 — Enter the River Edge Redevelopment Zone 
•  a qualified employee pension, profit sharing, stock 
                                                               Dividend subtraction from Illinois Schedule 1299-B, Step 1, 
   bonus, or bond purchase plan, or from a government 
                                                               Line 3. 
   (including military) retirement or disability plan. Report 
   only such distribution that was included in taxable         Line 18 — Enter the High Impact Business Dividend 
   income on U.S. Form 1041, Line 8. Attach a copy of          subtraction from Illinois Schedule 1299-B, Step 1, Line 6. 
   U.S. Form 1041, Page 1, and supporting schedule for 
   Line 8.
IL-1041 Instructions (R-12/23)                                                                                    Page 10 of 23

Line 19 — Enter the amount of any contribution made to a                        Include only subtractions reported to you on the 
job training project established under the “Tax Increment             Schedule(s) K-1-P or K-1-T you received from a pass-through 
Allocation Redevelopment Act,” as amended. For further                entity in which you are an investing partner or shareholder or 
information, see 65 ILCS 5/11-74.4-1 et seq.                          a beneficiary. Do not attach copies of Schedules K-1-T you 
Line 20 — Enter the subtraction allowance from Form IL-4562,          issued to your beneficiaries. You should keep copies of these 
Step 3, Line 19. Attach Form IL-4562 to your Form IL-1041.            schedules in your records.
      The sum of the amounts reported in columns A and B              Line 23 — If you are an ESBT, enter the amount of net 
of this line should match the total amount reported on                taxable income if it is a loss passed through to you by 
Form IL-4562, Step 3, Line 19.                                        subchapter S corporations. Also, you should include the 
Line 21 — Enter the amount from Illinois Schedule 80/20,              amounts applicable from this trust in your addition and 
Step 4, Line 23. Attach Illinois Schedule 80/20 to your               subtraction modifications. Attach a breakdown worksheet 
Form IL-1041.                                                         explaining each amount. Net positive income from subchapter 
                                                                      S corporations is reported on Line 3.
      The sum of the amounts reported in columns A and B 
of this line should match the total amount reported on Illinois               Do not enter an amount on Line 23a.
Schedule 80/20, Step 4, Line 23.                                      Line 24 — Enter the subtraction amount calculated on Illinois 
You should use Illinois Schedule 80/20                                Schedule M, Step 3, Line 40. Attach a copy of Illinois 
                                                                      Schedule M to your Form IL-1041.
•   if you added back interest paid to an affiliated company 
    on Step 2, Line 8, you may subtract any interest received                 The sum of the amounts reported in columns A and B 
    from that affiliated company during this tax year, up to the      of this line should match the total amount reported on Illinois 
    amount of your addition for interest expense paid to that         Schedule M, Step 3, Line 40.
    company. Also, if you added back intangible expenses              You may not subtract anything that is not identified below, 
    from a transaction with an affiliated company on Line             on Schedule M (for businesses), or in Illinois Publication 101. 
    8, you may subtract any income you received during                Subtractions allowed on Illinois Schedule M include:
    the tax year from similar transactions with the affiliated        •      notes, bonds, debentures, or obligations issued by the 
    company, up to the amount of your addition for intangible                Governments of Guam, American Samoa, Puerto Rico, 
    expense for that company. To compute the amount of this                  the Northern Mariana Islands, or the Virgin Islands, to the 
    subtraction, complete Illinois Schedule 80/20.                           extent that you were required to add these amounts to 
•   if you are an affiliated company, and you received                       your federal taxable income;
    interest or intangible income from someone who had to             •      Lloyd’s plan of operations income if reported on your 
    add back the interest and intangible expense on their                    behalf on Form IL-1065 and included in your federal 
    Illinois Schedule 80/20, you may subtract your interest or               taxable income;
    intangible income from that person.                               •      the amount equal to the deduction used to compute the 
Line 22 — Enter your distributive share of subtractions                      federal tax credit for restoration of amounts held under 
passed through to you on Schedules K-1-P or K-1-T by a                       claim of right under IRC Section 1341;
partnership, S corporation, trust, or estate that you were either     •      the amounts disallowed as federal deductions or interest 
a partner, a shareholder, or a beneficiary of. Do not include                expenses under IRC Sections 171(a)(2), 265, or 280C; 
any amounts passed through that are reflected on Illinois 
                                                                      •      reparations or other amounts received as a victim of 
Schedule 1299-B. Attach a copy of all Illinois Schedules                     persecution for racial or religious reasons by Nazi 
K-1-P and K-1-T you received to your Form IL-1041.                           Germany or any other Axis regime that are included in 
      The partnership or the subchapter S corporation                        your federal taxable income. Also include any reparations 
is required to send you an Illinois Schedule K-1-P and                       or other amounts received as an heir of such victim that 
Schedule K-1-P(2) and the trust or estate is required to                     are included in your federal taxable income;
send you an Illinois Schedule K-1-T and Schedule K-1-T(2), 
specifically identifying your share of subtractions.

                                               Loss Reduction Worksheet 

  1   Enter the amount of the reduction to your federal net operating losses                                                        
     See Federal Form 982.                                                                         1     _________________ 
  2   Enter your income allocation ratio. See instructions.                                        2     _________________ 
  3  Multiply the amount on Line 1 by Line 2. This is your reduction amount.
     Enter the result here and on Form IL-1041, Line 28.                                           3     _________________
  Line 1 — Follow the instructions in Line 1.
  Line 2 — Your income allocation ratio is calculated by dividing the amount of debt cancellation income excluded from your gross income 
  that would have been allocated or apportioned to Illinois under the IITA if it was not excluded by the total amount of debt cancellation income 
  excluded from your gross income. If all of your debt cancellation income would have been business income, use the apportionment factor you 
  calculated on Schedule NR for the tax year of the debt cancellation.
  Line 3 — Follow the instructions on the form.

IL-1041 Instructions (R-12/23)                                                                                            Page 11 of 23

• any other income included on Step 2, Line 11, exempt            Step 5 — Figure your net replacement tax - For 
  from taxation by Illinois by reason of its Constitution or      trusts only, estates go to Step 6
  statutes or by the Constitution, treaties, or statutes of the   Line 35 — Enter your recapture of investment credits from 
  United States. This amount is net of any bond premium           Illinois Schedule 4255, Step 5, Column D, Line 20.
  amortization deducted federally. 
                                                                  If you claimed any Illinois investment tax credit in a prior year 
Line 26 — Subtract Line 25 from Line 12. If you are a resident    on Form IL-477, and any of the property was disqualified 
of Illinois enter this amount on Step 4, Line 27. The base        within 48 months of being placed in service, you must use 
income of a resident trust or estate is not subject to allocation Illinois Schedule 4255 to compute the amount of recapture. 
or apportionment. The entire amount is allocated to Illinois      Credit must be recaptured in the year the property became 
under the provisions of the IITA. If you are a nonresident of     disqualified.
Illinois, complete Illinois Schedule NR (Form IL-1041) before 
                                                                  Line 37 — Enter the amount from Illinois Schedule CR 
completing Step 4. Attach Illinois Schedule NR (Form IL-1041) 
                                                                  (Form IL-1041), Step 5, Line 60. Attach Illinois Schedule 
to your Form IL-1041. For more information, see Illinois 
                                                                  CR and all required supporting documents to your 
Schedule NR (Form IL-1041) Instructions.
                                                                  Form IL-1041. For more information, see Illinois Schedule CR 
Step 4 — Figure your net income                                   Instructions.
Line 27 — Follow the instructions on the form. If this amount     Line 38 — Enter the amount from Form IL-477, Step 1, 
is a loss, you may be allowed to carry it forward to other years  Line 13. Attach Form IL-477 and any other required 
as an Illinois net loss deduction (NLD).                          support listed on Form IL-477 to your Form IL-1041.
Line 28 — If you were required to reduce the net operating        You may claim a replacement tax investment credit of 
loss reported on your U.S. Form 1041 because you excluded         .5 percent (.005) of the basis of qualified property placed in 
any discharge of indebtedness income from this tax year’s         service in Illinois during the tax year.
gross income, then you may be required to reduce the net          An additional credit of up to .5 percent (.005) of the basis of 
loss reported on Line 27. Use the Loss Reduction Worksheet        qualified property is available if your Illinois base employment 
below to figure your loss reduction.                              increased over the preceding year or if your business is new 
      Check the box in Step 1, Line N.                            to Illinois. Excess credit may be carried forward for five years 
Attach a copy of your federal Form 982, Reduction of              following the excess credit year. For more information, see 
Tax Attributes Due to Discharge of Indebtedness, and a            Form IL-477 Instructions.
detailed statement, including the amounts and tax year, of        Step 6 — Figure your net income tax - For trusts and 
the debt and reason for reduction to your Form IL-1041. For       estates
more information, see 86 Ill. Adm. Code Section 100.2310(c). 
                                                                  Line 42 — Multiply Line 41 by 4.95 percent (.0495). 
      If you also have Illinois net operating loss carryovers 
                                                                  Line 43 — Enter the total of your recapture of 
to the tax year of the debt cancellation, you may also be 
                                                                  investment credits from Illinois Schedule 4255, Step 5, 
required to reduce these carryovers. See Schedule NLD and 
                                                                  Columns A, B, and C, Lines 20 and Step 6, Line 27. See 
Schedule NLD Instructions for more information.
                                                                  Schedule 4255 Instructions for more information regarding the 
Line 29 — If you have a discharge of indebtedness                 recapture of investment credits.
adjustment on Line 28, add Lines 27 (a negative number) 
                                                                  If you claimed an Illinois Enterprise Zone or River Edge 
and 28 (a positive number), and enter the result here. This 
                                                                  Redevelopment Zone Investment Credit, High Impact 
amount cannot be greater than zero. 
                                                                  Business Investment Credit, or Angel Investment Credit in a 
If you do not have a discharge of indebtedness                    prior year on Illinois Schedule 1299-D, and any of the property 
adjustment, enter zero on Line 28 and the amount from             becomes disqualified, you must use Illinois Schedule 4255 to 
Line 27 on Line 29.                                               compute the amount of recapture. Credit must be recaptured 
Line 30 — Enter your Illinois net loss deduction carryforward     in the year in which the property became disqualified. For 
as determined from Illinois Schedule NLD, Step 1, Line 7, total   more information, see Illinois Schedule 4255.
box. Attach Illinois Schedule NLD to your Form IL-1041.           Line 45 — Enter the amount from Illinois Schedule 
Line 31 — The standard exemption is $1,000. If you have           CR (Form IL-1041), Step 5, Line 59. Attach Illinois 
a change in your tax year end, and the result is a tax period     Schedule CR and all required supporting documents 
of less than 12 months, the standard exemption is prorated        to your Form IL-1041. For more information, see Illinois 
based on the number of days in the short tax year. However,       Schedule CR Instructions.
if this is your first or final return, you are allowed to use     Line 46 — Enter the amount from Illinois Schedule 1299-D, 
the full-year standard exemption even if it is a short tax        Step 2, Line 10. The total of all credits is limited to the 
year. If you are a nonresident, you must use Schedule NR          total income tax shown on Line 44. Attach Illinois 
(Form IL-1041) to compute your exemption allowance.               Schedule 1299-D and any other required support listed 
This figure cannot be greater than “$1,000.” The standard         on Schedule 1299-D to your Form IL-1041. For more 
exemption is $0.00 if your adjusted gross income (AGI) is         information, see Illinois Schedules 1299-D and 1299-I, Income 
$250,000 or more. You should make the determination about         Tax Credits Information and Worksheets.
your AGI based on AGI under IRC Section 67(e).

IL-1041 Instructions (R-12/23)                                                                                        Page 12 of 23

Step 7 — Figure your refund or balance due                                   Although a unitary business group filing combined 
Line 51 — Compassionate Use of Medical Cannabis Program              Illinois returns is treated as a single taxpayer and its members 
Act surcharge.                                                       are jointly and severally liable for any surcharge imposed on 
                                                                     the group, the group itself is not an organization registrant and 
                               Definitions
                                                                     transactions of any member that is not itself an organization 
Organization registrantmeans a corporation, partnership,             registrant are not subject to the surcharge. 
trust, limited liability company (LLC), or other organization, 
that holds either a medical cannabis cultivation center              How do I figure the surcharge?
registration issued by the Illinois Department of Agriculture        If the surcharge applies to you, complete the Surcharge 
or a medical cannabis dispensary registration issued by the          Worksheet below.
Illinois Department of Financial and Professional Regulation.        For more information, see 86 Ill. Adm. Code Section 100.2060.
Transactions subject to the surchargemeans sales and                 Line 52 —Sale of Assets by Gaming Licensee surcharge
exchanges of
                                                                                             Definitions
•   capital assets;
                                                                     Gaming licensee is an organization licensee under the Illinois 
•   depreciable business property;                                   Horse Racing Act of 1975 and/or an organization gaming 
•   real property used in the trade or business; and                 licensee under the Illinois Gambling Act.
•   Section 197 intangibles of an organization registrant.           Transactions subject to the surchargemeans sales and 
                    What is the surcharge?                           exchanges of
For each taxable year beginning or ending during the                 •      capital assets;
Compassionate Use of Medical Cannabis Program, a                     •      depreciable business property;
surcharge is imposed on all taxpayers on income arising from         •      real property used in the trade or business; and
the transactions subject to the surcharge of an organization         •      Section 197 intangibles of a gaming licensee.
registrant under the Compassionate Use of Medical Cannabis 
                                                                                           What is the surcharge?
Program Act. 
                                                                     For each taxable year 2019 through 2027, a surcharge 
The amount of the surcharge is equal to the amount of federal 
                                                                     is imposed on all taxpayers on income arising from the 
income tax liability for the taxable year attributable to the 
                                                                     transactions subject to the surcharge of a gaming licensee. 
transactions subject to the surcharge.
                                                                     The amount of the surcharge is equal to the amount of federal 
          To whom does the surcharge apply?
                                                                     income tax liability for the taxable year attributable to the 
The surcharge is imposed on any taxpayer who incurs a                transactions subject to the surcharge.
federal income tax liability on the income realized on a 
                                                                                To whom does the surcharge apply?
“transaction subject to the surcharge,” including individuals 
and other taxpayers who are not themselves the “organization         The surcharge is imposed on any taxpayer who incurs a 
registrant” that engaged in the transaction.                         federal income tax liability on the income realized on a 
                                                                     “transaction subject to the surcharge,” including individuals 
A line has been included on Schedules K-1-P and K-1-T 
                                                                     and other taxpayers who are not themselves the “gaming 
to identify the amount of federal income attributable to 
                                                                     licensee” that engaged in the transaction.
transactions subject to the surcharge that was passed through 
to you on federal Schedule K-1.                                      The surcharge imposed shall not apply if 
                                                                     •      the organization gaming license, organization license, or 
                                                                            racetrack property is transferred as a result of any of the 
                                                                            following:

                                          Surcharge Worksheet for IL-1041
Instructions:  Complete the appropriate column for the surcharge(s)                        A                           B
you are claiming.                                                               Compassionate Use                 Sale of assets
                                                                                of Medical Cannabis               by gaming
                                                                                      Program Act                 licensee

  1 Enter your federal income tax liability for the taxable year.               1  ______________              1  ______________
  2 Enter your federal income tax liability for the taxable year computed 
    as if “transactions subject to the surcharge” made in that year had not 
    been made by the organization registrant in Column A or a gaming 
    licensee in Column B.                                                       2  ______________              2  ______________
  3 Subtract Line 2 from Line 1. Enter the result here.  
    Enter the Column A total on Form IL-1041, Step 7, Line 51 or the 
    Column B total on Form IL-1041, Step 7, Line 52.                            3  ______________             3  ______________

IL-1041 Instructions (R-12/23)                                                                                              Page 13 of 23

•    bankruptcy, a receivership, or a debt adjustment             Line 54 — Add Lines 49 through 53 and enter the total on 
     initiated by or against the initial licensee or the          this line. This is your total net income and replacement taxes, 
     substantial owners of the initial licensee;                  surcharge, and pass-through withholding you owe.
•    cancellation, revocation, or termination of any such         Line 55a — Enter the sum of any overpayment from your 
     license by the Illinois Gaming Board or the Illinois         prior year tax returns that you requested to be applied to this 
     Racing Board;                                                year’s tax return. Take into account any correspondence we 
•    a determination by the Illinois Gaming Board that            may have sent you that changed the amount of your credit 
     transfer of the license is in the best interests of Illinois carryforward from the previous year.
     gaming;                                                      Line 55b — Enter the sum of any 
•    the death of an owner of the equity interest in a            • voluntary estimated payments or tax prepayments made 
     licensee;                                                      before the date this return is filed,
•    acquisition of a controlling interest in the stock or        • extension payments made before the original due date of 
     substantially all of the assets of a publicly traded           the return, and 
     company;                                                     • other payments made before the date this return is filed.
•    a transfer by a parent company to a wholly owned             Line 55c — Enter the amount of Illinois pass-through 
     subsidiary; or                                               withholding (including any eligible investment partnership 
•    the transfer or sale to or by one person to another          withholding) reported to you by partnerships, S corporations, 
     person where both persons were initial owners of the         or trusts on Schedule(s) K-1-P or K-1-T. If you received more 
     license when the license was issued;                         than one Schedule K-1-P or K-1-T, add the amounts you wish 
•    the controlling interest in the organization gaming          to claim from all the schedules and enter the total on Line 55c.
     license, organization license, or racetrack property is             Do not include on Line 55c any pass-through 
     transferred in a transaction to lineal descendants in        withholding or pass-through entity tax you owe on behalf of 
     which no gain or loss is recognized or as a result of        your beneficiaries. Pass-through withholding amounts you 
     a transaction in accordance with Section 351 of the          owe on behalf of your beneficiaries is included on Step 7, 
     Internal Revenue Code in which no gain or loss is            Line 53. 
     recognized; or                                               Line 55d — Enter the amount of PTE tax credit reported 
•    live horse racing was not conducted in 2010 at a             to you on Schedule(s) K-1-P and K-1-T that is retained by 
     racetrack located within 3 miles of the Mississippi          the fiduciary. If you received more than one Schedule K-1-P 
     River under a license issued pursuant to the Illinois        or K-1-T, add the amounts you wish to claim from all the 
     Horse Racing Act of 1975.                                    schedules and enter the total on Line 55d.
The transfer of an organization gaming license, organization      PTE tax credit passed through to beneficiaries is reported on 
license, or racetrack property by a person other than the initial Schedule K-1-T, Line 50. 
licensee to receive the organization gaming license is not               Do not include any PTE tax credit passed through to 
subject to a surcharge.                                           beneficiaries on Schedule D Section B, Line H.
A line has been included on Schedule K-1-P and                    For both Lines 55c and 55d:
Schedule K-1-T to identify the amount of taxable gains 
                                                                  Attach copies of the Schedules K-1-P and K-1-T you received 
attributable to transactions subject to the surcharge that was 
                                                                  from pass-through entities to your Form IL-1041. 
passed through to you on federal Schedule K-1.
                                                                  Schedules K-1-P and K-1-T, Step 1, Line 3, must be 
      Although a unitary business group filing combined 
                                                                  completed or you will not receive credit for the pass-through 
Illinois returns is treated as a single taxpayer and its members 
                                                                  withholding or PTE tax credit reported to you. 
are jointly and severally liable for any surcharge imposed 
on the group, the group itself is not a gaming licensee and       See “Definitions to help you complete your Form IL-1041” in 
transactions of any member that is not itself a gaming licensee   these instructions for more information.
are not subject to the surcharge.                                             Do not attach copies of Schedules K-1-T you 
         How do I figure the surcharge?                           issued to your beneficiaries. You should keep copies of these 
                                                                  schedules in your records.
If the surcharge applies to you, complete the Surcharge 
Worksheet on Page 13.                                             Line 55e — Enter the amount of Illinois income tax withheld 
                                                                  on wages and salaries (of a decedent), gambling withholding, 
Line 53 — Complete all sections of Illinois Schedule D and 
                                                                  and sports wagering winnings withholding that was received 
enter the amount from Illinois Schedule D, Section A, Line 3 
                                                                  by you. 
on this line. This is the amount of pass-through withholding 
you owe on behalf of your beneficiaries. Attach Illinois          This withholding must be claimed by the fiduciary. Also 
Schedule D to your Form IL-1041. See “Definitions to help         include any Illinois Income Tax withheld as reported on 
you complete your Form IL-1041” in these instructions for         any federal 1099 forms you received. Attach Forms W-2, 
more information.                                                 W-2G, and any federal 1099 forms you received to your 
                                                                  Form IL-1041.
      Do not include on Line 53 any pass-through 
withholding reported to you on Schedule(s) K-1-P or K-1-T. 
Pass-through withholding amounts reported to you are 
included on Step 7, Line 55c.
IL-1041 Instructions (R-12/23)                                                                                       Page 14 of 23

   For Lines 55c, 55d, and 55e – Grantor trusts                           If you wish to apply the credit to a different tax year, 
distribute all amounts reported on any Schedule K-1-P or           see “May I apply my credit to a different tax year?”
K-1-T they receive to the grantor identified on Schedule K-1-P,    With what date will my credit apply against my tax 
Line 9b, or Schedule K-1-T, Line 8b. The distributed amounts       liability?
are reported by the grantor on their own Illinois return. Review 
                                                                   If your 2023 return was filed
the Schedule K-1-P(2) or Schedule K-1-T(2) Instructions.
                                                                   ‰  on or before the extended due date of your return 
Line 58 — Enter the amount of overpayment you elect to be 
                                                                     (October 15, 2024, for calendar-year filers), your credit 
credited forward. Check the box on this line if this is your final 
                                                                     is considered to be paid on the original due date of this 
return and any remaining carryforward is being transferred 
                                                                     return (April 15, 2024, for calendar-year filers). 
to another entity. Attach a detailed statement to your return 
listing the FEIN of the entity receiving the credit carryforward,    However, if all or a portion of your overpayment results 
the date the credit was transferred, and the reason for the          from payments made after the original due date of this 
transfer.                                                            return, that portion of your credit is considered to be paid 
                                                                     on the date you made the payment.
   Step 1, Line E, must also be completed if you are 
transferring an overpayment to another entity.                            Example 1: You file your 2023 calendar-year return 
                                                                          on or before the extended due date of your return 
Your credit carryforward will not be applied if you do not file a 
                                                                          requesting $500 be applied as a credit. All of your 
processable return.
                                                                          payments are made before the original due date of 
   Your credit carryforward may be reduced by us                          your return. Your credit of $500 will be considered to 
due to corrections we make to your return, or to satisfy any              be paid on April 15, 2024. 
unpaid tax, penalty, and interest due for this year or any other 
                                                                          Example 2: You file your 2023 calendar-year 
year. If we reduce your credit carryforward, it may result in a 
                                                                          return on or before the extended due date of your 
late-payment penalty in a subsequent year.
                                                                          return requesting $500 be applied as a credit. Your 
To which tax year will my credit apply?                                   overpayment includes payments of $400 you made 
If your 2023 return was filed                                             before the original due date of your return, and a $100 
‰ on or before the original filing and payment due date                   payment you made on June 3, 2024. Your credit of 
  of your return, your credit will be applied to the next full            $400 will be considered to be paid on April 15, 2024. 
  tax year, unless you elect to apply the credit to a different           The remaining $100 credit will be considered to be 
  tax year.                                                               paid on June 3, 2024. 
   Example 1: You file your 2023 calendar-year                     ‰  after the extended due date of your return, your credit 
   return on March 1, 2024, requesting to receive your               is considered to be paid on the date you filed the return on 
   overpayment as a credit. March 1, 2024, falls before              which you made the election.
   the original filing and payment due date of the 2023                   Example 3: You file your 2023 calendar-year return  
   tax year (April 15, 2024, for calendar-year filers).                   on December 2, 2024, requesting $500 be applied  
   Your credit will be applied against your 2024 tax year                 as a credit. Your credit of $500 will be considered to  
   liability.                                                             be paid on December 2, 2024, because you filed  
‰ after the original filing and payment due date of your                  your return after the extended due date of your 2023  
  return, your credit will be applied to the next full tax year           calendar-year return.
  in which timely payments can be made as of the date you             If you are filing your return after the extended due 
  are filing this return, unless you elect to apply the credit to  date, you may only elect to claim an overpayment credit for 
  a different tax year.                                            payments received on or before the date you filed your return. 
   Example 2: You file your 2023 calendar-year return              Any payments made after the date you filed that return can 
   on August 5, 2024, requesting to receive your                   only be claimed as an overpayment credit on a subsequent 
   overpayment as a credit. August 5, 2024, is after the           amended return. 
   original filing and payment due date of the 2023 tax            May I apply my credit to a different tax year? 
   year (April 15, 2024, for calendar-year filers), but is         Yes. If you wish to apply your credit to a tax year other than 
   before the original filing and payment due date of the          the one during which you file this return, you must submit a 
   2024 tax year (April 15, 2025, for calendar-year filers).       separate request in writing to: 
   Your credit will be applied against your 2024 tax year          ILLINOIS DEPARTMENT OF REVENUE
   liability.                                                      PO BOX 19004
   Example 3: You file your 2023 calendar-year                     SPRINGFIELD IL 62794-9004
   return on April 23, 2025, requesting to receive your                   Submit your request at the time you file your return. 
   overpayment as a credit. April 23, 2025, is after the           Do not submit your return to this address.
   original filing and payment due date of the 2024 tax            Your request must include 
   year (April 15, 2025, for calendar-year filers), but is 
                                                                   • your name, 
   before the original filing and payment due date of the 
   2025 tax year (April 15, 2026, for calendar-year filers).       • your FEIN, 
   Your credit will be applied against your 2025 tax year          • the tax year of the return creating the overpayment, and
   liability.                                                      • the tax year you wish to have the credit apply.
IL-1041 Instructions (R-12/23)                                                                                          Page 15 of 23

If you do not follow these instructions, your election will be         We do not support international ACH transactions. 
considered invalid and we will not apply your credit as you      We will only deposit refunds into accounts located within the 
requested.                                                       United States. If your financial institution is located outside the 
If you submit a valid request, we will apply your credit as you  United States, we will send you a check instead of depositing 
requested and notify you. Once made, your election to change     your refund into your account. 
the tax year to which your credit will apply is irrevocable.     Line 61 — Follow the instructions on the form. This is your 
Requests will be worked in the order we receive them.            amount of tax due that must be paid in full if $1 or more. If you 
       You may only apply your credit to tax years occurring     are not paying electronically, complete a payment voucher, 
after the year of the return creating the overpayment. If you    Form IL-1041-V, make your check or money order payable to 
request to apply more credit than our records show you have      “Illinois Department of Revenue” and attach them to the 
available, we will apply the maximum amount available and        front of your return.
notify you of the difference.                                          If you are paying electronically do not complete and 
Lines 59 — Follow the instructions on the form. Your refund      attach a payment voucher.
will not be issued if you do not file a processable return.      You should also enter the amount you are paying in the 
       Your refund may be reduced by us to satisfy any           box located on the top of Page 1 of the Form IL-1041.
unpaid tax, penalty, and interest due for this year or any other We encourage you to let us figure your penalties and interest 
year.                                                            and send you a bill instead of determining these amounts 
Line 60 — Direct deposit information.                            yourself. We will compute any penalty and interest due and 
If you choose to deposit your refund directly into your          notify you (see General Information, “What are the penalties 
checking or savings account, you must                            and interest?”). 
• Enter your routing number.                                     Step 8 — Signature, date, and paid preparer’s 
  •    For a checking account, your routing number must          information
       be nine digits and the first two digits must be 01        You must sign and date your return. If you do not sign your 
       through 12 or 21 through 32.                              return, it will not be considered filed and you may be subject 
                                                                 to a 
       The sample check following these instructions has         nonfiler penalty.
       an example of a routing number.                           If you pay someone to prepare your return, the income tax 
                                                                 return preparer must also sign and date the return, enter the 
  •    For a savings account, you must contact your    
                                                                 preparer tax identification number (PTIN) issued to them by 
       financial institution for your routing number.
                                                                 the Internal Revenue Service, and provide their firm’s name, 
•  Check the appropriate box to indicate whether you want        FEIN, address, and phone number.
  your refund deposited into your checking or savings   
                                                                 If you want to allow the paid preparer listed in this step 
  account.
                                                                 to discuss this return with IDOR, check the box. This 
•  Enter your account number.                                    authorization will allow your paid preparer to answer any 
  •    For a checking account, your account number may           questions that arise during the processing of your return, call 
       be up to 17 digits.                                       us with questions about your return, and receive or respond 
       The sample check following these instructions             to notices we send. The authorization will automatically end 
       has an example of an account number.                      no later than the due date for filing your next year’s tax return 
                                                                 (excluding extensions). You may revoke the authorization at 
  •    For a savings account, you must contact your    
                                                                 any time by calling or writing us.
       financial institution for your account number. 

Do not use your account and routing numbers from your 
checking or savings account deposit slip.Do not include 
your check number. Include hyphens, but omit spaces and 
special symbols. You may have unused boxes. 
       If your financial institution does not honor your request 
for direct deposit, we will send you a check instead.

IL-1041 Instructions (R-12/23)                                                                                Page 16 of 23

                               Illinois Schedule D Instructions
                   General Information                           of any overpayment. Additionally, failure to submit 
                                                                 appropriate documentation when requested may result in a 
Read this information before completing Illinois Schedule D. 
                                                                 referral to our Audit Bureau for compliance action.
Amounts listed on the Schedule(s) K-1-T and 
Schedule(s) K-1-T(3) you complete are carried to your            Fiduciaries must complete Illinois Schedule D. Do not 
Illinois Schedule D and then reported on your Form IL-1041.      send a computer printout with line numbers and dollar 
Therefore, you must complete Schedule(s) K-1-T and               amounts attached to a blank copy of the schedule. Computer 
Schedule(s) K-1-T(3) before completing Schedule D.               generated printouts are not acceptable, even if they are in the 
                                                                 same format as IDOR’s forms. Computer generated forms 
In order to ensure you complete Schedule D correctly, do the 
                                                                 from an IDOR-approved software developer are acceptable.
following in order:
‰  Complete all Schedule(s) K-1-T and                            What is a resident?
 Schedule(s) K-1-T(3), as applicable, for your beneficiaries     A resident is
 before completing any section of Illinois Schedule D.           • an individual who is present in Illinois for other than a 
 The information reported on Schedule(s) K-1-T and                 temporary or transitory purpose;
 Schedule(s) K-1-T(3) will be used to complete Illinois          • an individual who is absent from Illinois for a temporary or 
 Schedule D. See Schedule K-1-T(1) for more information.           transitory purpose but who is domiciled in Illinois;
‰  Complete Section B of Illinois Schedule D before              • the estate of a decedent who at his or her death was 
 completing Section A of Illinois Schedule D. Section B            domiciled in Illinois;
 reports specific amounts from each Schedule K-1-T and 
 Schedule K-1-T(3) you completed. Section B is required          • a trust created by a will of a decedent who at his or her 
 to be completed in full in order to avoid processing delays,      death was domiciled in Illinois; or
 further correspondence, or delays in the processing of any  •     an irrevocable trust, whose grantor was domiciled in 
 overpayments.                                                     Illinois at the time the trust became irrevocable. For 
‰  Complete Section A of the Illinois Schedule D. Section A        purposes of this definition, a trust is irrevocable to the 
 reports total amounts from Section B, and is required to          extent that the grantor is not treated as the owner of the 
 be completed in full in order to avoid processing delays,         trust under IRC Sections 671 through 678. 
 further correspondence, or delays in the processing of any      What is a nonresident?
 overpayments.                                                   A nonresident is a person who is not a resident, as previously 
‰  Carry the amount from Illinois Schedule D, Section A,         defined. Corporations, S corporations, partnerships, and 
 Line 3, to your Form IL-1041, as applicable.                    exempt organizations are considered nonresidents for 
See the Schedule K-1-T(1) Instructions and Illinois              purposes of Illinois Schedule D.
Schedule D, Specific Instructions, for more information.         What do Section B, Lines F and G report?
What is the purpose of Illinois Schedule D?                      Lines F and G report certain items of income and 
The purpose of Illinois Schedule D, Beneficiary Information,     pass-through withholding you reported to your nonresident 
is for you to identify any person who was a beneficiary during   beneficiaries on the Schedule K-1-T you issued to them.
your tax year.                                                   How do I determine the amounts to report in Section B, 
Illinois Schedule D also allows you to identify your             Lines F and G?
beneficiaries that are subject to the Illinois Personal Property Before completing Illinois Schedule D you must complete 
Tax Replacement Income Tax and to figure the share               Schedule(s) K-1-T and Schedule(s) K-1-T(3) for each of 
of distributable income or loss that is to be added to or        your nonresident beneficiaries, as applicable. The amounts 
subtracted from your base income.                                reported on those schedules will be used to complete Illinois 
Is Schedule D required?                                          Schedule D, Section B, Lines F and G. 
Yes. You are required to have a copy of this form on file. You   Estates are not required to make pass-through withholding on 
must attach a copy to your Form IL-1041, Illinois Fiduciary      behalf of their nonresident beneficiaries.
Income and Replacement Tax Return.                               See Schedule K-1-T(1) for instructions and more information 
Illinois Schedule D supports the amount reported on              about Schedule K-1-T(3).
Form IL-1041, Step 7, Line 53, as pass-through withholding       What does Section B, Line H report?
you owe on behalf of your nonresident beneficiaries. 
                                                                 Line H reports the amount of pass-through entity tax credit  
Therefore, you must follow the instructions for Illinois 
                                                                 you received that is being distributed to your beneficiaries. 
Schedule D, complete it in full, and attach it to your return.
                                                                 This amount will also be reported on the Schedule K-1-T 
     You must use forms prescribed by IDOR. Separate             distributed to the beneficiary.
statements not on forms provided or approved by IDOR 
will not be accepted and you will be asked for appropriate 
documentation. Failure to comply with this requirement 
may delay the processing of your return or the generation 
IL-1041 Instructions (R-12/23)                                                                                       Page 17 of 23

                   Specific Instructions                         Section B — Beneficiaries’ information
Section A — Total beneficiaries’ information                     Columns 1 through 3 — 
       Complete Schedule(s) K-1-T and                            Line A — Enter the name and address of each beneficiary. 
Schedule(s) K-1-T(3), as applicable, and all of Illinois         Use the following examples as a guide.
Schedule D, Section B, before completing this section.           If the beneficiary is an individual, use the following formats:
Illinois Schedule D, Section A should be completed using the     John Doe               John and Mary Doe    John Doe
                                                                 111 W. Main Street     111 W Main Street    % Mary Doe
totals from Illinois Schedule D, Section B. When you submit      Anytown                Anytown              111 W Main St. #5A
your return you should only attach a single page of Section A.   IL  62666               IL  62666             Anytown
If you require multiple pages of Section B, you may attach as                                                  IL  62666
many pages of Section B as required behind Section A.            If the beneficiary is a trust or an estate, use the following 
                                                                 formats:
Line 1 — Report amounts for both resident and 
                                                                 John Doe Bankruptcy Trust         Estate of John Doe
nonresident beneficiaries — Add the amounts you reported         % Mary Doe, Trustee               111 W Main St., Ste 4A
on Step 3, Column A, Line 9 through Line 18, of all the          111 W Main Street, Suite 4A       Anytown
Schedule(s) K-1-T you issued to your beneficiaries and enter     Anytown                            IL  62666
the total here.                                                  IL  62666
Line 2 — Report amounts for nonresident beneficiaries            If the beneficiary is a corporation (including S 
only.                                                            corporations), or a partnership, use the following formats:
Line 2a — Enter the total amount of pass-through withholding     Illinois Big Business Group       Illinois Small Business Group
                                                                 % John Doe, VP Finance            % Mary Doe
you reported on the Schedule(s) K-1-T you issued to your         111 West Main Street, Suite 4  111 West Main Street
nonresident individual beneficiaries only. Total the             Anytown                           Anytown
amounts reported in Section B, Line G, for beneficiaries that    IL  62666                         IL  62666
are identified with an “I” in Section B, Line B, and enter it    Line B — Indicate the type of each beneficiary. Enter
here.
                                                                 •  “I” for individual  
Line 2b — Enter the total amount of pass-through withholding 
                                                                 •  “P” for partnership      
you reported on the Schedule(s) K-1-T you issued to your 
nonresident estate beneficiaries only. Total the amounts         •  “C” for C corporation
reported in Section B, Line G, for beneficiaries that are        •  “S” for S corporation
identified with an “M” in Section B, Line B, and enter it here.  •  “T” for trust 
Line 2c — Enter the total amount of pass-through withholding     •  “M” for estate
you reported on the Schedule(s) K-1-T you issued to your 
                                                                 •  “A” for exempt organization (trust)
partnership and S corporation beneficiaries only. Total the 
amounts reported in Section B, Line G, for beneficiaries that    •  “N” for exempt organization (corporation)
are identified with a “P” or “S” in Section B, Line B, and enter         If this beneficiary is a grantor trust or other 
it here.                                                         disregarded entity, enter the letter that corresponds to the tax 
Line 2d — Enter the total amount of pass-through withholding     type of the grantor or owner.
you reported on the Schedule(s) K-1-T you issued to your         Line C — Enter the Social Security number (SSN) or federal 
nonresident trust beneficiaries only. Include beneficiaries      employer identification number (FEIN) of each beneficiary. 
identified as an exempt organization (trust). Total the amounts          If the beneficiary is a foreign entity and does not have 
reported in Section B, Line G, for beneficiaries that are        an SSN or FEIN, leave this line blank for that beneficiary. If 
identified with a “T” or “A” in Section B, Line B, and enter it  you leave this line blank, you may be contacted for further 
here.                                                            information.
Line 2e — Enter the total amount of pass-through withholding     Line D — Enter the amount of base income or loss that was 
you reported on the Schedule(s) K-1-T you issued to your         distributed or deemed distributed to this beneficiary.
C corporation beneficiaries only. Include beneficiaries 
                                                                 Line E — If the beneficiary was excluded from pass-through 
identified as an exempt organization (corporation). Total the 
                                                                 withholding indicate the reason by entering
amounts reported in Section B, Line G, for beneficiaries that 
are identified with a “C” or “N” in Section B, Line B, and enter •    “R” if the beneficiary is an Illinois resident,
it here.                                                         •    “E” if the beneficiary provided you a Form IL-1000-E, 
Line 3 — Add Section A, Lines 2a through 2e of this Illinois       Certificate of Exemption for Pass-through Withholding, 
Schedule D and enter this amount here and on Form IL-1041,         indicating that they would pay their own tax liability,
Line 53. The amount on Line 3 should match the total amount                 Beneficiaries who provide you Form IL-1000-E           
from Schedule D, Section B, Line G, for all beneficiaries on all        must not be individual taxpayers. 
pages.                                                           •    “M” if you are an estate and therefore not required 
If you completed multiple pages of Section B, complete             to make pass-through withholding on behalf of your 
Section A one time reporting the totals from all pages of          beneficiaries, or
Section B. Place all pages of Section B behind the single        • “N” if the beneficiary was an exempt organization and you 
page of Section A, and attach them to your return.                 did not make pass-through withholding on their behalf. 

IL-1041 Instructions (R-12/23)                                                                                           Page 18 of 23

 Taxpayers are not required to make pass-through 
withholding on behalf of their exempt organization 
beneficiaries, but may do so for tax years ending on or after 
December 31, 2014.
If you elected to make pass-through withholding on behalf of 
an exempt organization beneficiary, leave Line E blank for that 
beneficiary and complete Lines F and G.
Line F — Enter the amount you reported on Step 3, Line 12, 
of the Schedule K-1-T(3) you completed for this beneficiary. 
This amount is this beneficiary’s share of Illinois income 
subject to pass-through withholding. 
 This amount is a dollar amount. Do not list a 
percentage in this column.
Line G — Enter the amount of pass-through withholding 
that was made on behalf of the beneficiary and reported to 
them on Schedule K-1-T, Step 7, Line 49.
 This should match the amount reported on Step 3, 
Line 13, of the Schedule K-1-T(3) you completed for this 
beneficiary.
If you have more than three beneficiaries to report, and 
additional space is needed, complete and attach additional 
pages of Illinois Schedule D, Section B. After you have 
completed Section B, listing all required amounts for your 
beneficiaries, complete the single page of Illinois Schedule D, 
Section A.
Line H — Enter each beneficiary’s distributive share 
of PTE tax credit you are passing through from 
Schedule(s) K-1-P or K-1-T you received. The PTE tax 
credit is passed through to your beneficiaries in the same 
proportion that the pass-through income is distributed to 
your beneficiaries. Also list each beneficiary’s share on their 
Schedule K-1-T, Step 7, Line 50.
 Do not include any PTE tax credit passed through 
to you from Schedule(s) K-1-P or K-1-T that you retain and 
report on Form IL-1041, Step 7, Line 55d.

IL-1041 Instructions (R-12/23)                                  Page 19 of 23

                               Appendix A - Extension Tax Payment Worksheet

Use this worksheet if all of the following apply to you:
•    you are required to file Form IL-1041,
•    you cannot file your annual tax return by the due date, and
•    you complete this worksheet and determine you owe a tentative tax. 
If Line 8 of the worksheet shows you owe tentative tax, pay the full amount due either by filing and paying with Form IL-1041-V or by making 
your payment electronically. An extension of time to file does not extend the amount of time you have to make your payment. 

Extension Tax Payment Worksheet (for your records)
    1  Enter the total income (trusts and estates) and replacement (trusts only) taxes you expect to owe (including recapture of 
    investment credits, pass-through withholding you will owe on behalf of your beneficiaries, and surcharges from the
    Compassionate Use of Medical Cannabis Program Act and the sale of assets by gaming licensee).             1 
    2Enter any previous tax payments or prepayments you made and any overpayment you elected to be 
    credited to this tax year.                                                                                2 
 3   Enter any withholding reported to you and pass-through withholding (including any eligible  
    investment partnership withholding) made on your behalf or PTE tax credit reported to you and  
    retained by you in this tax year.                                                                         3                                 
 4   Resident fiduciary only, enter any credit for income tax paid to other states expected in this tax year. 4 
  5  Enter the estimated income tax credits expected for this tax year.                                       5 
  6  Enter the estimated replacement tax investment credits expected for this tax year.                       6 
  7  Add lines 2 through 6 and enter the result here.                                                         7 
  8  Subtract Line 7 from Line 1. This is your tentative tax due. Enter the result here and on 
    Form IL-1041-V.                                                                                           8 

Extension Tax Payment Worksheet Instructions
Line 1 — Enter the total amount of income (trusts and estates) and replacement (trusts only) taxes (including the amount of recapture of    
           investment tax credit that you expect to report on Schedule 4255, Recapture of Investment Tax Credits, pass-through withholding  
           you expect to owe on behalf of your beneficiaries, and surcharges from the Compassionate Use of Medical Cannabis Program Act  
           and the sale of assets by gaming licensee you expect to owe for the tax year).
Line 2 — Enter the total amount of any previous tax payments or prepayments you made and any overpayment you elected to be credited to this  
           tax year. 
Line 3 —  Enter the total amount of Illinois income tax withheld on Forms W-2 and W-2G, and the amount of pass-through withholding (including  
           any eligible investment partnership withholding) made on your behalf and reported to you on Illinois Schedule(s) K-1-P or Schedule 
           K-1-T or the amount of PTE tax credit received on Illinois Schedule(s) K-1-P or Schedule K-1-T and retained by the fiduciary.
Line 4 — If you are a resident fiduciary, enter the estimated Illinois credit for income tax paid to other states (the sum of Schedule CR, Step 5,  
           Lines 59 and 60). See the instructions for Schedule CR (Form IL-1041).
Line 5 — Enter the total of any estimated income tax credits (including any credit carryforward) from Schedule 1299-D.
Line 6 — Enter the amount of any estimated replacement tax investment credits from Form IL-477.
Line 7 — Follow the directions on the worksheet. This is your total tax payments and credits.
Line 8 — Subtract Line 7 from Line 1. This is your tentative tax due. If Line 8 is $1 or more, you must pay the amount due. If Line 8 is less  
           than $1, you do not have to pay or file Form IL-1041-V. Do not attach your Federal Form 7004 to your Form IL-1041-V.

        Pay electronically at tax.illinois.gov or use Form IL-1041-V, Payment Voucher for Fiduciary Income and 
Replacement Tax. 

Failure to use the correct voucher for your payments may result in your payment being misapplied, penalties and interest, a delay in the 
processing of your return, or a delay in the generation of any overpayment. 

IL-1041 Instructions (R-12/23)                                                                                                   Page 20 of 23

                               Appendix B - Tax Prepayment Worksheets

Use this worksheet to determine the amount to voluntarily prepay:
• pass-through withholding on behalf of your beneficiaries or 
• your own tax liability. 
Prepayments are entirely voluntary; however, we suggest that you make your prepayments in four equal installments during the course of a 
year. 
Check the following boxes to determine which worksheets you should complete. (You may check multiple boxes.)
  1   If you have nonresident individual and estate beneficiaries that you wish to voluntarily prepay pass-through
      withholding on behalf of, check this box and complete Worksheet 1  .  .  .  . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
  2   If you have partnership or S corporation beneficiaries that you wish to voluntarily prepay pass-through withholding
      on behalf of, check this box and complete Worksheet 2 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
  3   If you have nonresident trust beneficiaries that you wish to voluntarily prepay pass-through withholding on behalf of,
      check this box and complete Worksheet 3  .  .  .  . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
  4   If you have corporation beneficiaries that you wish to voluntarily prepay pass-through withholding on behalf of, check
      this box and complete Worksheet 4  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
  5   If you wish to prepay your own estimated tax liability, check this box 
      and complete Worksheet 5.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Once the worksheets are complete, add the total from each worksheet:  
Worksheet 1, Line 7            ____________
Worksheet 2, Line 7            ____________ 
Worksheet 3, Line 7            ____________
Worksheet 4, Line 7            ____________
Worksheet 5, Line 11           ____________
                               TOTAL _____________

This is the amount of each of your voluntary quarterly prepayments to be made with  Form IL-1041-V. These payments may be made at any 
time, up to and including the original due date of your return. 

       Pay electronically at tax.illinois.gov or use Form IL-1041-V to mail your payment. 
Failure to use the correct voucher for your prepayments may result in your payment being misapplied, penalties and interest, a delay in the 
processing of your return, or a delay in the generation of any overpayment. 

Worksheet 1:  Figure your pass-through withholding prepayments for nonresident individual and estate beneficiaries. If you have nonresi-
dent individual and estate beneficiaries that you wish to voluntarily prepay pass-through withholding on behalf of, complete this worksheet to 
determine the amount of your prepayment. Keep this record for your files.
  1   Enter your nonresident individual and estate beneficiaries’ share of business income apportioned 
      to Illinois expected in the tax year (cannot be less than zero).                                 1  
  2   Enter your nonresident individual and estate beneficiaries’ share of nonbusiness income allocable
      to Illinois expected in the tax year (cannot be less than zero).                                        2 
  3   Add Lines 1 and 2 and enter the result.                                                          3 
  4   Multiply Line 3 by 4.95 percent (.0495) and enter the result.                                    4 
  5   Enter the amount of surcharge from the Compassionate Use of Medical Cannabis Program Act and 
      the surcharge from the sale of assets by gaming licensee passed-through to you and 
      distributed to nonresident individual and estate beneficiaries.                                  5 
  6   Add Lines 4 and 5.                                                                               6 
  7   Divide Line 6 by 4. This is the amount of each of your voluntary prepayments for nonresident
      individual and estate beneficiaries.                                                             7 

IL-1041 Instructions (R-12/23)                                                                                              Page 21 of 23

Worksheet 2:  Figure your pass-through withholding prepayments for partnership or S corporation beneficiaries. If you have partnership or 
S corporation beneficiaries that you wish to voluntarily prepay pass-through withholding for, complete this worksheet to determine the amount 
of your prepayment. Keep this record for your files.
 1 Enter your partnership or S corporation beneficiaries’ share of business income apportioned 
   to Illinois expected in the tax year (cannot be less than zero).                                   1  
 2 Enter your partnership or S corporation beneficiaries’ share of nonbusiness income allocable
   to Illinois expected in the tax year (cannot be less than zero).                                         2 
 3 Add Lines 1 and 2 and enter the result.                                                            3 
 4 Multiply Line 3 by 1.5 percent (.015) and enter the result.                                        4 
 5 Enter the amount of surcharge from the Compassionate Use of Medical Cannabis Program Act and 
   the surcharge from the sale of assets by gaming licensee passed-through to you and 
   distributed to partnership and S corporation beneficiaries.                                        5 
 6 Add Lines 4 and 5.                                                                                 6 
 7 Divide Line 6 by 4.This is the amount of each of your voluntary prepayments for partnership
   or S corporation beneficiaries.                                                                    7 

Worksheet 3:  Figure your pass-through withholding prepayments for nonresident trust beneficiaries. If you have nonresident trust 
beneficiaries that you wish to voluntarily prepay pass-through withholding for, complete this worksheet to determine the amount of your 
prepayment. Keep this record for your files.
 1 Enter your nonresident trust beneficiaries’ share of business income apportioned to Illinois
   expected in the tax year (cannot be less than zero).                                               1  
 2 Enter your nonresident trust beneficiaries’ share of nonbusiness income allocable to Illinois
   expected in the tax year (cannot be less than zero).                                                     2 
 3 Add Lines 1 and 2 and enter the result.                                                            3 
 4 Multiply Line 3 by 6.45 percent (.0645) and enter the result.                                      4 
 5 Enter the amount of surcharge from the Compassionate Use of Medical Cannabis Program Act and 
   the surcharge from the sale of assets by gaming licensee passed-through to you and 
   distributed to nonresident trust beneficiaries.                                                    5 
 6 Add Lines 4 and 5.                                                                                 6 
 7 Divide Line 6 by 4. This is the amount of each of your voluntary prepayments for nonresident
   trust beneficiaries.                                                                               7 

Worksheet 4:  Figure your pass-through withholding prepayments for corporation beneficiaries. If you have corporation beneficiaries that 
you wish to voluntarily prepay pass-through withholding for, complete this worksheet to determine the amount of your prepayment. Keep this 
record for your files.
 1 Enter your corporation beneficiaries’ share of business income apportioned to Illinois expected in
   the tax year (cannot be less than zero).                                                           1  
 2 Enter your corporation beneficiaries’ share of nonbusiness income allocable to Illinois expected in
   the tax year  (cannot be less than zero).                                                                2 
 3 Add Lines 1 and 2 and enter the result.                                                            3 
 4 Multiply Line 3 by 9.5 percent (.095) and enter the result.                                        4 
 5 Enter the amount of surcharge from the Compassionate Use of Medical Cannabis Program Act and 
   the surcharge from the sale of assets by gaming licensee passed-through to you and 
   distributed to corporation beneficiaries.                                                          5 
 6 Add Lines 4 and 5.                                                                                 6 
 7 Divide Line 6 by 4. This is the amount of each of your voluntary prepayments for corporation
   beneficiaries.                                                                                     7 

IL-1041 Instructions (R-12/23)                                                                                Page 22 of 23

Worksheet 5:  Figure your own tax liability prepayments. If you wish to voluntarily prepay your own income and replacement tax liability 
complete this worksheet to determine the amount of your prepayment. Keep this record for your files.

 1   Enter the amount of Illinois net income expected in this tax year.                                    1 
 2   Figure your tax before credits. Multiply Line 1 by 4.95 percent (.0495) for estates or 
     6.45 percent (.0645) for trusts.                                                                      2 
 3   Enter the amount of recapture of investment credits expected in this tax year.                        3 
 4   Enter the sum of the Compassionate Use of Medical Cannabis Program Act surcharge and the 
     Sale of Assets by Gaming Licensee surcharge you expect in this tax year.                              4 
 5   Add Lines 2 through 4 and enter the result.                                                           5 
 6   Enter the amount of Illinois tax credits expected in this tax year as calculated on the corresponding 
     Form IL-477, Schedule CR, or Schedule 1299-D.                                                         6
 7   Enter the amount of pass-through withholding (including any eligible investment partnership withholding)  
     expected to be made on your behalf or PTE tax credit expected in the next tax year on any  
     Schedule K-1-P or Schedule K-1-T you receive.                                                         7 
 8   Enter the amount of Illinois withholding you expect in this tax year as shown on any Federal
     Forms W-2, W-2G, or 1099 you expect to receive.                                                       8
 9   Add Lines 6 through 8 and enter the result.                                                           9 
  10 Subtract Line 9 from Line 5 and enter the result.                                                     10 
  11 Divide Line 10 by 4. This is the amount of each of your voluntary prepayments for your own tax
     liability.                                                                                            11 

IL-1041 Instructions (R-12/23)                                                                                 Page 23 of 23