Illinois Department of Revenue                                         Use for tax year ending on or 
                                                                           after December 31, 2023, and 
                                                                           before December 31, 2024.    
    IL-1120 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-1120.
  • IL-4562 has been expanded and includes 60 percent bonus              General Information ............................................ 1
    depreciation.
  • Schedule M has been expanded and includes a new subtraction          Specific Instructions ........................................... 6
    line for cannabis establishments that had deductions disallowed 
    federally under IRC Section 280E. 
                                                                         Apportionment Formulas .................................. 15
  • Income Tax Credits -- Information about all the credits can be 
    found in Schedule 1299-I.
                                                                         Appendix A - Extension Tax Payment 
•   No new credits will be issued for the:
                                                                         Worksheet .......................................................... 18
    •  Agritourism Liability Insurance income tax credit (Credit Code 
    5440) for tax years ending after December 31, 2023                   Appendix B - Estimated Payment 
    •  Invest in Kids credit (Credit Code 5660) for tax years ending     Worksheets ........................................................ 19
    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-1120?                                              Foreign corporations — If you are a foreign corporation, you must 
You must file Form IL-1120 if you are a corporation that                 observe the same filing requirements as U.S. domestic corporations. 
                                                                         For Illinois purposes, you should report the taxable income you are 
•   has net income or loss as defined under the Illinois Income Tax      reporting for federal purposes under IRC Sections 881 through 885. 
    Act (IITA); or                                                       You must use only the domestic factor information regarding sales 
•   is qualified to do business in the state of Illinois and is required information in the “everywhere” denominator when apportioning 
    to file a federal income tax return (regardless of net income or     business income to Illinois. If you are a foreign corporation that is a 
    loss).                                                               member of a unitary business group, see Illinois Schedule UB and 
Unitary filers — If you are a corporation that is a member of            Instructions for information about filing requirements.
a unitary business group, see Illinois Schedule UB, Combined             Domestic international sales corporations and foreign sales 
Apportionment for Unitary Business Group, and its Instructions for       corporations — If you are a Domestic International Sales 
information about filing requirements.                                   Corporation (DISC) under IRC Section 992, you are not subject to 
Political organizations and homeowners’ associations — If you            the taxes imposed by IRC Subtitle A (except for the tax imposed on 
are a corporation that falls under the definition in Internal Revenue    transfers to avoid income tax under IRC Section 1491). Similarly, you 
Code (IRC), Sections 527 and 528, and you report your federal            are not required to file Form IL-1120.
taxable income on U.S. Form 1120-POL or U.S. Form 1120-H, you            For Illinois purposes, distributions from DISCs are treated in 
are subject to Illinois Income and Replacement Taxes and must file       accordance with the federal rules pertaining to dividends, dividend 
Form IL-1120.                                                            exclusions, and dividend-received deductions.
Cooperatives — If you are a corporation operating on a cooperative       If you are a Foreign Sales Corporation (FSC) for federal purposes 
basis under IRC Section 1381, and file U.S. Form 1120-C, you are         and have federal taxable income apportionable or allocable to Illinois, 
subject to Illinois Income and Replacement Taxes and must file           you are subject to Illinois tax rules applicable to all corporations. You 
Form IL-1120.                                                            are taxed by Illinois to the extent that your nonexempt foreign trade 
Settlement funds — If you are a settlement fund under IRC                income, investment income, and carrying charges (taxable for federal 
Section 468B and you report your federal taxable income on               purposes) are apportionable or allocable to Illinois.
U.S. Form 1120-SF, you are subject to Illinois Income and                  Corporate shareholders who derive income from Illinois 
Replacement Taxes and must file Form IL-1120.                            should include actual and deemed distributions from a DISC or FSC 
Limited liability companies — If you are a limited liability company     in business income.
and you file as a corporation for federal income tax purposes, you       Real estate mortgage investment conduits (REMIC) — If you 
are treated as a corporation for Illinois purposes.                      are a real estate mortgage investment conduit in accordance 
                                                                         with IRC Section 860A through G, you are not required to file 
                                                                         Form IL-1120.
IL-1120 Instructions (R-12/23)             Printed by the authority of the State of Illinois - web only - one copy.               Page 1 of 20

Charitable organizations, etc. — If you are an organization exempt     Automatic extension — 
from federal income tax by reason of IRC Section 501(a), you are 
not required to file Form IL-1120. However, unrelated business          Determine the date your tax year ends. If your tax year ends on
taxable income, as determined under IRC Section 512, is subject         •  a date other than June 30, we grant you an automatic 
to tax (without any deduction for Illinois Income Tax) and must            extension of time to file your annual return of seven months.* 
be reported on Form IL-990-T, Exempt Organization Income and            •  June 30, we grant you an automatic extension of time to file 
Replacement Tax Return. For more information, see Form IL-990-T            your annual return of eight months.*
Instructions.
                                                                        See 86 Ill. Adm. Code Section 100.5020 for more information.
Small business corporations — If you are an S corporation, as           *If you are a cooperative, we grant you an automatic extension of 
defined by IITA, Section 1501(a)(28), you are subject only to Illinois  time to file your annual return of seven months regardless of when 
Replacement Tax and must file Form IL-1120-ST, Small Business           your tax year ends.
Corporation Replacement Tax Return. The shareholders of these 
corporations are taxed by Illinois on their distributive shares of the The automatic extension of time to file is granted whether or not 
corporation’s income. For more information, see Form IL-1120-ST        you request it. You are not required to file a form in order to obtain 
Instructions.                                                          this automatic extension. If you expect tax to be due, you must pay 
                                                                       any tentative tax due by the original due date of the return in order 
What forms must I use?                                                 to avoid interest and penalty on tax not paid by that date. Use the 
In general, you must obtain and use forms prescribed by the Illinois   Extension Payment Worksheet in Appendix A to determine if you will 
Department of Revenue (IDOR). Separate statements not on forms         owe a tentative tax due payment. To pay any tax due by the original 
provided or approved by IDOR will not be accepted and you will         due date of your return:
be asked for appropriate documentation. Failure to comply with         •   visit tax.illinois.gov, for information about ACH credit, 
this requirement may result in failure to file penalties, a delay      •   pay using mytax.illinois.gov, or
in the processing of your return, or a delay in the generation 
of any overpayment. Additionally, failure to submit appropriate        •   mail  Form IL-1120-V, Payment Voucher for Corporation Income 
documentation when requested may result in a referral to our Audit         and Replacement Tax, using the address on the form. 
Bureau for compliance action.                                          If an unpaid liability is disclosed when you file your return, then you 
Corporations must complete Form IL-1120. Do not send a                 may owe penalty and interest charges in addition to the tax. See the 
computer printout with line numbers and dollar amounts attached        “What are the penalties and interest?”section below. An extension 
to a blank copy of the return. Computer generated printouts are not    of time to file your Form IL-1120 is not an extension of time for 
acceptable, even if they are in the same format as IDOR’s forms.       payment of Illinois tax. 
Computer generated forms from an IDOR-approved software                Additional extensions beyond the automatic extension period — 
developer are acceptable.                                              We will grant an additional extension only if an extension is granted 
   Form IL-1120 (R12/23) is for tax years ending on or after           by the Internal Revenue Service (IRS) beyond the date of the Illinois 
December 31, 2023, and before December 31, 2024. For tax years         automatic extension. Your additional Illinois extension will be equal to 
ending before December 31, 2023, use the 2022 form. Using the          the federal extension, plus one month. You must attach a copy of the 
wrong form will delay the processing of your return.                   approved federal extension to your Form IL-1120.
How do I register my business?                                         When should I pay?
If you are required to file Form IL-1120, you should register with     Payment of tax — You must pay your Illinois Income and 
IDOR. You may register                                                 Replacement Tax in full on or before the original due date of the 
                                                                       return. Failure to pay the tax due on or before the original due date 
• online with MyTax Illinois, our free online account management       of the return may result in penalty and interest. This payment date 
  program for taxpayers;                                               applies even though an automatic extension for filing your return has 
• by completing Form REG-1, Illinois Business Registration             been granted.
  Application, and mailing it to the address on the form; or           Estimated tax payments — If you reasonably expect your Illinois 
• by visiting a regional office.                                       Income and Replacement Tax and surcharge liability to be more than 
Visit our website at tax.illinois.gov for more information.            $400 for the tax year, you are required to make quarterly payments 
Registering with the IDOR prior to filing your return ensures that     of estimated tax using Form IL-1120-V, Payment Voucher for 
your tax returns are accurately processed.                             Corporation Income and Replacement Tax. 
Your identification numbers as an Illinois business taxpayer are       You should complete the Estimated Payment Worksheet in 
your federal employer identification number (FEIN) and your Illinois   Appendix B to figure your estimated tax and to determine if you are 
account number.                                                        required to make estimated tax payments. Taxpayers with short 
                                                                       tax years must make estimated payments. See 86 Ill. Adm. Code 
When should I file?                                                    Section 100.8010(f).
Original filing date — Your Illinois filing due date is the same as    The due dates for filing your estimated payments are the 15th day of 
your federal filing due date. See the table on the next page.          the 4th, 6th, 9th, and 12th months of your tax year.
Determine the date your tax year ends. If your tax year ends on        We encourage you to make your payments electronically using 
                                                                       MyTax Illinois or Modernized E-File (MeF) systems, or you may 
• a date other than June 30, Form IL-1120 is due on or before          use Form EFT-1, Authorization Agreement for Certain Electronic 
  the 15th day of the 4th month following the close of the tax 
                                                                       Payments, to set up ACH credit or phone debit. These options 
  year.* 
                                                                       can be found on our website at tax.illinois.gov. If you make your 
• June 30, Form IL-1120 is due on or before the 15th day of the        payments using MyTax Illinois, MeF, or EFT, do not mail us your 
  3rd month following the close of the tax year.*                      IL-1120-V forms. You must use one of our electronic payment 
*If you are a cooperative, Form IL-1120 is due on the 15th day         options if IDOR has notified you that you are required to make 
of the 9th month following the close of the tax year regardless of     payments electronically.
when your tax year ends.
IL-1120 Instructions (R-12/23)                                                                                                  Page 2 of 20

Unitary business groups must make estimated payments on a                 Sales or transfers — If you are a corporation that, outside the usual 
combined basis using the designated agent’s federal employer              course of business, sells or transfers the major part of any one or 
identification number (FEIN) only. For more information about             more of
designated agents or combined estimated payments, refer to                • the stock of goods which you are in the business of selling, 
86 Ill. Adm. Code Section 100.5220 and 100.5230, respectively.              furniture or fixtures of your business,
If you do not pay the required estimated tax payments on time,            • the machinery and equipment of your business, or
you may be assessed a late-payment penalty. We will apply each 
                                                                          • the real property of your business,
payment to the earliest due date until that liability is paid, unless you 
provide specific instructions to apply it to another period.              you or the purchaser must complete and send us Form CBS-1, 
                                                                          Notice of Sale, Purchase, or Transfer of Business Assets, no later 
You may also be assessed a bad check penalty if your remittance 
                                                                          than 10 business days prior to the date the sale takes place. Send 
is not honored by your financial institution.
                                                                          this form, along with copies of the sales contract and financing 
Who should sign the return?                                               agreement, to: 
Your Form IL-1120 must be signed by the president, vice president,          ILLINOIS DEPARTMENT OF REVENUE
                                                                            BULK SALES UNIT
treasurer, or any other officer duly authorized to sign the return.         PO BOX 19035 
In the case of a bankruptcy, a receiver, trustee, or assignee must          SPRINGFIELD IL 62794-9035
sign any return required to be filed on behalf of the corporation.        or
The signature verifies by written declaration (and under penalties          REV.BulkSales@illinois.gov
of perjury) that the signing individual has personally examined the 
return and the return is true, correct, and complete. The fact that       Request for prompt determination — You may make a 
                                                                          request for prompt determination of liability, in accordance with 
an individual’s name is signed to a return is prima facie evidence 
                                                                          IITA 35 ILCS 5/905(i), if you are a corporation in the process of 
that the individual is authorized to sign the return on behalf of the 
                                                                          dissolution. A completed tax return must be on file with us before 
corporation.
                                                                          you can submit a request for prompt determination. Do not submit 
Any person paid to prepare the return (other than a regular               your return and request at the same time. Mail your initial return to 
employee of the taxpayer, such as a clerk, secretary, or bookkeeper)      the address indicated on the form. You should allow 12 weeks for 
must provide a signature, date the return, enter the preparer tax         processing. If your request is properly made, the expiration of the 
identification number (PTIN) issued to them by the Internal Revenue       statute of limitations (absent fraud) will not extend beyond 18 months 
Service, and provide their firm’s name, FEIN, address, and phone          from the date of your request. Mail your request and a copy of your 
number.                                                                   previously submitted return to:
     If your return is not signed, any overpayment of tax is                ILLINOIS DEPARTMENT OF REVENUE
considered forfeited if, after notice and demand for signature, you fail    PO BOX 19044
to provide a signature within three years from the date your return         SPRINGFIELD IL 62794-9044
was filed.                                                                        The procedure described above does not apply to 
                                                                          11 U.S.C. Section 505 Determination of Tax Liability requests. 
What are the penalties and interest?
Penalties — You will owe                                                  What if I need to correct or change my return?
• a late-filing penalty if you do not file a processable return by        Do not file another Form IL-1120 with “amended” figures to change 
  the extended due date;                                                  your originally filed Form IL-1120. If you need to correct or change 
                                                                          your return after it has been filed, you must file Form IL-1120-X, 
• a late-payment penalty if you do not pay the tax you owe by the         Amended Corporation Income and Replacement Tax Return. 
  original due date of the return;                                        Returns filed before the extended due date of the return are treated 
• a late-payment penalty for underpayment of estimated tax if             as your original return for all purposes. For more information, see 
  you were required to make estimated tax payments and failed to          Form IL-1120-X Instructions.
  do so, or failed to pay the required amount by the payment due 
                                                                          You should file Form IL-1120-X only after you have filed a 
  date;                                                                   processable Illinois Income Tax return. You must file a separate 
• a bad check penalty if your remittance is not honored by your           Form IL-1120-X for each tax year you wish to change. 
  financial institution; or                                                                       File Form IL-1120-X promptly if you discover 
                                                                          State changes only —
• a cost of collection fee if you do not pay the amount you owe           an error on your Illinois return that does not relate to an error on your 
  within 30 days of the date printed on your bill.                        federal return but rather was caused by
Interest — Interest is calculated on tax from the day after the original  • a mistake in transferring information from your federal return to 
due date of your return through the date you pay the tax.                   your Illinois return;
We will bill you for penalties and interest. For more information about   • failing to report or misreporting to Illinois an item that has no ef-
penalties and interest, see Publication 103, Penalties and Interest for     fect on your federal return; or
Illinois Taxes.
                                                                          • a mistake in another state’s tax return that affects the computa-
What if I am discontinuing my business?                                     tion of your Illinois tax liability.
Liquidation, withdrawal from Illinois, or loss of charter — If you        If you are claiming an overpayment, Form IL-1120-X must be filed 
are a corporation that is liquidated, withdraws either voluntarily or     within three years after the extended due date or the date the 
involuntarily from Illinois, or in any manner surrenders or loses your    return was filed, or within one year after the tax giving rise to the 
charter during any tax year, you are still required to file tax returns.  overpayment was paid, whichever is latest.
Also, we will pursue the assessment and collection of taxes owed by 
you or your shareholders.

IL-1120 Instructions (R-12/23)                                                                                                       Page 3 of 20

Federal changes only — File Form IL-1120-X if you have filed              •     corporation included in the filing of a consolidated income 
an amended federal return or if you have been notified by the IRS               tax return for the tax year, for federal income tax purposes, 
that they have made changes to your return. This includes any                   your taxable income is determined as if you had filed a separate 
change in your federal income tax liability, any tax credit, or the             return for federal income tax purposes for the tax year and each 
computation of your federal taxable income as reported for federal              preceding tax year you were a member of an affiliated group. 
income tax purposes, if the change affects any item entering into the           Your separate taxable income must be determined as if the 
computation of net income, net loss, or any credit for any year under           election provided by IRC Section 243(b)(2) had been in effect for 
the IITA. You must file Form IL-1120-X no later than 120 days after             all years.
the federal changes have been agreed to or finally determined to 
avoid a late-payment penalty.                                             •     cooperative or association, your taxable income is the 
                                                                                taxable income determined in accordance with the provisions of 
If your federal change decreases the tax due to Illinois and                    IRC Sections 1381 through 1388.
you are entitled to a refund or credit carryforward, you must file 
Form IL-1120-X within two years plus 120 days of federal finalization.    •     foreign corporation, your taxable income is the amount 
                                                                                of federal taxable income described in IRC Sections 881 
Attach a copy of federal finalization or proof of acceptance from the           through 885.
IRS along with a copy of your amended federal form, if applicable, to 
your Form IL-1120-X. Examples of federal finalization include a copy      What if I have an Illinois net loss deduction (NLD)?
of one or more of the following items:                                    An Illinois net loss deduction (NLD) can be used to reduce the base 
• your federal refund check                                               income allocable to Illinois only if the loss year return has been 
• your audit report from the IRS                                          filed and to the extent the loss was not used to offset income from 
                                                                          any other tax year. Corporations, excluding S corporations, that are 
• your federal transcript verifying your federal taxable income
                                                                          members of a unitary group, should use Schedule UB/NLD, Unitary 
       For amended tax returns filed on or after January 1, 2024,         Illinois Net Loss Deduction, to determine any NLD. S corporations 
a late payment penalty will be assessed for any amended return not        and partnerships, including any that are members of a unitary group, 
filed and the resulting liability not paid within 120 days of the federal trusts, and non-unitary corporations should use Schedule NLD, 
change. See 35 ILCS 735/3-3(b-25) for more information.                   Illinois Net Loss Deduction, to determine any NLD. 
                                                                          To determine your “Illinois net loss” start with federal taxable income 
What records must I keep?                                                 and apply all addition and subtraction modifications and all allocation 
You must maintain books and records to substantiate any information       and apportionment provisions.
reported on your Form IL-1120. Your books and records must be 
                                                                          In order to have any available NLD applied to your return, you must 
available for inspection by our authorized agents and employees.
                                                                          claim the deduction on Step 5, Line 38. See specific instructions for 
Do the IDOR and the IRS exchange income tax                               Step 5, Line 38.
information?                                                              If you have an Illinois net loss for this tax year, you must file 
                                                                          Form IL-1120 reporting the loss in order to carry the loss forward to 
The IDOR and the IRS exchange income tax information for the 
                                                                          another year.
purpose of verifying the accuracy of information reported on federal 
and Illinois tax returns. All amounts you report on Form IL-1120 are      If corrections have been made to the loss amount (e.g., federal audit 
subject to verification and audit.                                        or amended return), you must report the corrected amount when you 
                                                                          file. 
Should I round?                                                                  Ensure you have filed returns for all periods in which you 
You must round the dollar amounts on Form IL-1120 and                     were required to file an Illinois return. Unfiled returns may result in 
accompanying schedules to whole-dollar amounts. To do this, you           disallowed losses, processing delays, and further correspondence 
should drop any amount less than 50 cents and increase any amount         from IDOR. 
of 50 cents or more to the next higher dollar.                            If you need more information about Illinois NLD, see Schedule NLD, 
                                                                          Schedule NLD Instructions, Schedule UB/NLD, Schedule UB/NLD 
What is base income/taxable income?
                                                                          Instructions or 86 Ill. Adm. Code Sections 100.2050 and 100.2300 
Your base income or loss is your federal taxable income or loss, plus     through 100.2330.
any additions on Lines 2 through 8, less any subtractions on Line 22. 
See specific instructions for Steps 2 and 3.                              What if I am a cooperative and have an Illinois NLD?
“Taxable income” as reported for federal income tax purposes is           If you are a cooperative, filing form U.S. Form 1120-C and you are 
determined differently for certain corporations. If you are a             carrying an Illinois NLD, you must claim the deduction on Step 5, 
• life insurance company subject to the tax imposed by                    Line 38. See specific instructions for Step 5, Line 38.
  IRC Section 801, your taxable income is the life insurance              If you are a cooperative, filing form U.S. Form 1120-C and you make 
  company taxable income, plus the amount of distributions from           the election to split your patronage and nonpatronage income and 
  pre-1984 policyholder surplus accounts as calculated under              loss amounts, you must complete Schedule INL, Illinois Net Loss 
  IRC Section 815(a).                                                     Adjustments for Cooperatives and REMICs. You are required to 
• nonlife mutual or nonlife stock insurance company subject               complete Schedule INL every year and make the loss computation 
  to the tax imposed by IRC Section 831, your taxable income is           on Schedule NLD. 
  the insurance company taxable income.
                                                                          What are the limitations of the Illinois NLD?
• regulated investment company subject to the tax imposed 
                                                                          When determining the years to which a loss can be carried forward, 
  by IRC Section 852, your taxable income is the investment 
                                                                          corporations, other than S corporations, do not count
  company taxable income.
                                                                          •     tax years ending after December 31, 2010, and before 
• real estate investment trust subject to the tax imposed                       December 31, 2012, (NLD suspension); 
  by IRC Section 857, your taxable income is the real estate 
  investment trust taxable income.
IL-1120 Instructions (R-12/23)                                                                                                    Page 4 of 20

• tax years ending on or after December 31, 2012, and before             copy of your federal Form 982, Reduction of Tax Attributes Due to 
  December 31, 2014, for which the deduction would exceed                Discharge of Indebtedness, to your return. For more information, see 
  $100,000 (NLD limitation). You must count any years in which           86 Ill. Adm. Code Section 100.2310(c).
  the deduction you took did not exceed $100,000; and
                                                                         What attachments do I need?
• tax years ending on or after December 31, 2021, and before 
                                                                         When filing your return there are certain types of income items 
  December 31, 2024, for which the deduction would exceed 
                                                                         and subtraction modifications that require the attachment of 
  $100,000 (NLD limitation). You must count any years in which 
                                                                         Illinois or federal forms and schedules. Breakdowns, statements, 
  the deduction you took did not exceed $100,000.                        and other documentation may also be required. Instructions for 
What are the carry provisions of Illinois NLD?                           these attachments appear throughout the specific instructions for 
For tax years ending on or after December 31, 2021, Illinois net         completing your return.
losses cannot be carried back and can only be carried forward for                  All Illinois forms and schedules include an “IL Attachment 
20 tax years.                                                            No.” in the upper right corner of the form. Required attachments 
For tax years ending on or after December 31, 2003, and before           should be ordered numerically behind the tax return, as indicated by 
December 31, 2021, Illinois net losses can no longer be carried          the IL Attachment No. Failure to attach forms and schedules in the 
back, and can only be carried forward for 12 years. However,             proper order may result in processing delays. 
the carryover period of any net loss that has not expired as of          Required copies of documentation from your federal return or other 
November 16, 2021, shall be extended from 12 years to 20 years.          sources should be attached behind the completed Illinois return.
For tax years ending on or after December 31, 1999, and before           All taxpayers, including unitary business groups, must 
December 31, 2003, all Illinois net losses must be carried back two      attach a copy of your U.S. Form 1120, Pages 1 through 5, and 
years (unless an election to only carry forward is made) then forward    Schedules L, M-1, M-2, and M-3 to your Illinois return. 
20 years. The election to carry a loss forward only was made by 
                                                                         •
checking the appropriate box on the original or amended loss-year           Exception no. 1 — If you are a corporation, but do not file 
return, whichever showed the loss first. Once the election was made        U.S. Form 1120, you must attach a copy of the form that 
to forgo the Illinois carryback provision, the election was irrevocable.   you file federally, including, U.S. Form 1120-L, Page 1, or 
                                                                           U.S. Form 1120-PC, Page 1 (and Schedule A, if filed), 1120-POL, 
Illinois net losses in tax years ending before December 31, 1999, 
                                                                           1120-H, or 1120-SF.
are generally allowed for tax years beginning
                                                                         • 
•  after August 5, 1997, and ending before December 31, 1999,              Exception no. 2 — If you are a corporation whose taxable 
                                                                           income is included in a consolidated federal tax return, you must 
  must be carried back two years, then forward 20 years.
                                                                           provide a pro forma copy of U.S. Forms 1120, 1120-L, 1120-PC, 
•  on or before August 5, 1997, must be carried back three years,          and all applicable schedules, as if you had filed a separate federal 
  then forward 15 years.                                                   return. Please label your pro forma federal return “pro forma”.
   For tax years ending on or after December 31, 1996, and                         When filing your Form IL-1120, include only forms and 
before December 31, 2003, you may have made the election to forgo        schedules required to support your return. Send correspondence 
any of the previously mentioned Illinois NLD carryback periods by        separately to:
checking the appropriate box on your loss year return. This election       ILLINOIS DEPARTMENT OF REVENUE
must have been made by the extended due date of your return and            TAXPAYER CORRESPONDENCE
once made was irrevocable for that tax year.                               PO BOX 19044
In addition, the special carryover periods in IRC Section 172, as in       SPRINGFIELD IL 62794-9044
effect for a particular tax year, would apply to losses incurred in that What if I participated in a reportable transaction?
year. For example, a “specified liability loss” incurred in 1998 may be  If you participated in a reportable transaction, including a “listed 
carried back 10 years under IRC Section 172(b)(1)(c).                    transaction,” during this tax year and were required to disclose 
Also, no limitations under IRC Section 382 or the separate return        that transaction to the IRS, you are also required to disclose that 
limitation year provisions of the federal consolidated return            information to Illinois.
regulations apply to any NLD carryover.                                  You must send us two copies of the form used to disclose the 
What if I have a discharge of indebtedness?                              transaction to the IRS.
If you had discharge of indebtedness income for a taxable year           •  Mail the first copy of the federal disclosure statement to:
ending on or after December 31, 2008, and all or a portion of              ILLINOIS DEPARTMENT OF REVENUE
this income was excluded from your federal gross income due                PO BOX 19029
                                                                            SPRINGFIELD IL 62794-9029
to bankruptcy or insolvency, then you may be required to reduce 
either or both (i) the net operating loss incurred in the taxable year   •  Attach the second copy to your Illinois Income Tax return for the 
of the discharge, and (ii) any net operating loss carryovers to the        tax year that the IRS disclosure was required. Mail the second 
taxable year of the discharge. If you were required to reduce a            copy and your Illinois Income Tax return to the address shown on 
federal net operating loss in the year of the discharge, you may           your return. Do not mail the second copy and your Illinois Income 
have been required to reduce any Illinois net loss you incurred for        Tax return to the address listed above.
the same year. This reduction is made on the Illinois income tax         What are Illinois Schedules K-1-T and K-1-P?
return you filed for the loss year using the Loss Reduction Worksheet 
                                                                         Illinois Schedule K-1-T, Beneficiary’s Share of Income and 
on Page 10 of these instructions. If you are a corporation (other 
                                                                         Deductions, is provided for trusts and estates to supply each 
than an S corporation) or trust and you were required to reduce 
                                                                         beneficiary with income amounts that are taxable to Illinois and 
or eliminate a federal net operating loss carryover because you 
                                                                         pass-through withholding payments made on the beneficiary’s 
had discharge of indebtedness income, you may be required to 
                                                                         behalf. If you are a beneficiary of a trust or an estate, you should 
reduce or eliminate your Illinois net operating loss carryovers. This 
                                                                         receive a completed Illinois Schedule K-1-T and a copy of Illinois
reduction is calculated on the Discharge of Indebtedness Worksheet                                                                             
                                                                         Schedule K-1-T(2), Beneficiary’s Instructions, from that trust or 
on Schedule NLD or Schedule UB/NLD Instructions. Attach a 
                                                                         estate.
IL-1120 Instructions (R-12/23)                                                                                                         Page 5 of 20

Illinois Schedule K-1-P, Partner’s or Shareholder’s Share of Income,     PTE tax is an amount equal to 4.95 percent (.0495) of the taxpayer’s 
Deductions, Credits, and Recapture, is for partnerships and S            calculated net income for the taxable year paid by a partnership 
corporations to supply each partner or shareholder with income           (other than a publicly traded partnership under Section 7704 of the 
amounts that are taxable to Illinois, the partner’s or shareholder’s     Internal Revenue Code) or subchapter S corporation who elects to 
share of Illinois credits, and pass-through withholding (including       pay the tax for taxable years ending on or after December 31, 2021, 
investment partnership withholding) payments made on the partner’s       and beginning prior to January 1, 2026.
or shareholder’s behalf. If you are a partner in a partnership or a      PTE tax credit is the distributive share of the credit allowed as a 
shareholder in an S corporation, you should receive a completed          result of a partnership or S corporation having elected to pay the 
Illinois Schedule K-1-P and a copy of Illinois Schedule K-1-P(2),        PTE tax. 
Partner’s or Shareholder’s Instructions, from that partnership or S 
corporation.                                                             PTE tax credit is
                                                                          •      reported  toyou on Schedule(s) K-1-P and K-1-T, and
What is pass-through withholding and pass-through 
                                                                          •      reported 
entity (PTE) tax?                                                                         by you on Form IL-1120, Line 61d.
A pass-through entity is any entity treated as a partnership,            What if I need additional assistance or forms?
subchapter S corporation, or trust for federal income tax purposes.      •  For assistance, forms, or schedules, visit our website at 
Pass-through entity income is the income that any partnership,              tax.illinois.gov or scan the QR code provided.
subchapter S corporation, or trust passes through to its partners, 
shareholders, or beneficiaries.
Pass-through withholding is the amount required to be reported 
and paid by the pass-through entity on behalf of its nonresident 
partners, shareholders, and beneficiaries 
•   who have not submitted Form IL-1000-E, Certificate of 
    Exemption for Pass-through Withholding, to the pass-through 
    entity, and                                                          •  Write us at: 
•   who receive business and nonbusiness income allocable to                     ILLINOIS DEPARTMENT OF REVENUE
    Illinois from the pass-through entity.                                       PO BOX 19001
                                                                                 SPRINGFIELD IL 62794-9001
Corporations can receive pass-through withholding. Pass-through          •  Call 1 800 732-8866 or 217 782-3336 (TTY at 1 800 544-5304).
withholding reported to you is a credit for pass-through 
withholding you receive on Schedules K-1-P and K-1-T as a partner,       •  Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. 
shareholder, or beneficiary of a pass-through entity. This amount will      (Springfield office) and 8:30 a.m. to 5:00 p.m. (all other offices), 
be reported on Form IL-1120, Line 61c.                                      Monday through Friday.
         Beginning with tax years ending on or after                     Where should I file?
December 31, 2023, investment partnerships are required to withhold      If a payment is enclosed with your return, mail your Form IL-1120 to:
an amount for their nonresident partners. Investment partnerships        ILLINOIS DEPARTMENT OF REVENUE
will use the pass-through withholding line of Schedule K-1-P (Step       PO BOX 19038
7, Line 55) to report investment partnership withholding credit.         SPRINGFIELD IL 62794-9038
Partners in an investment partnership must determine how they are 
treating the income passed to them from the investment partnership       If a payment is not enclosed, mail your Form IL-1120 to: 
to determine if they are eligible to use the investment partnership      ILLINOIS DEPARTMENT OF REVENUE 
withholding credit. Eligible partners will treat the investment          PO BOX 19048
partnership withholding credit the same as the pass-through              SPRINGFIELD IL 62794-9048
withholding credit. See Schedule K-1-P(2) for more information.

                                                 Specific Instructions
Specific instructions for most of the lines are provided on the              — If you are a foreign insurer, check the box and, if you are 
following pages. If a specific line is not referenced, follow the        entitled to a tax reduction, attach a completed Illinois Schedule INS, 
instructions on the form.                                                Tax for Foreign Insurers. 
Step 1 — Identify your corporation                                           — If you are filing a combined return and one or more 
                                                                         members are foreign insurers, check both boxes. If your unitary 
A — All taxpayers: Type or print your legal business name. If you        group is entitled to a tax reduction, attach a completed Illinois 
have a name change from last year, check the corresponding box.          Schedule UB/INS, Tax for a Unitary Business Group with Foreign 
B — Type or print your mailing address.                                  Insurer Members. For more information, see Illinois Schedule INS or 
         Any related correspondence issued by IDOR will be               Illinois Schedule UB/INS.
mailed to the address entered on Step 1, Line B.                                  See the instructions for Lines 51 and 54 in order to claim the 
C — If this is your first or final return, check the appropriate box and tax reduction calculated on Schedule INS or Schedule UB/INS.
the box on Line 64 if you have a credit carry forward on your final      F   —If you are required to disclose reportable transactions and 
return.                                                                  you have completed federal Form 8886 or federal Schedule M-3, 
D — If you checked final return on Line C, answer the questions on       Part II, Line 12, check the appropriate box and attach a copy of the 
Line D, if applicable.                                                   federal form or schedule to this return. See “What if I participated in a 
E — If you are filing an Illinois combined return, check the box and     reportable transaction?” for more information.
attach a completed Illinois Schedule UB. For more information, see 
Illinois Schedule UB Instructions.
IL-1120 Instructions (R-12/23)                                                                                                        Page 6 of 20

G — Apportionment Formulas — If you earn income both inside                 W — Check the box if you annualized your income on 
and outside of Illinois, check the appropriate box(es). If you are a        Form IL-2220, Computation of Penalties for Businesses, and attach 
unitary business group, check as many boxes as applicable. If more          Form IL-2220 to your tax return.
than one box is checked, you must complete a Subgroup Schedule              X — Check this box only if you have sales into Illinois and you 
for each checked box that is not a sales company. If you earn income        are not required to allocate them because you are protected by 
only inside Illinois, leave this line blank. For more information, see      Public Law 86-272. Complete Steps 1 through 5 of Form IL-1120.
the specific instructions for “Apportionment Formulas.”                     Y — Check this box if you are a 52/53-week filer. A 52/53-week 
H — If you are a unitary business group and completed                       filer is a fiscal filer with a tax year that varies from 52 to 53 weeks 
Schedule UB, check the box and attach Schedule UB to your return.           because their tax year ends on the same day of the week instead of 
I — If you are a unitary business group and completed Subgroup              the last day of the month. 
Schedule, check this box and attach Subgroup Schedule. See                          You must complete an IDOR-issued or previously 
Subgroup Schedule (UB) and Schedule UB Instructions for more                approved Form IL-1120 and corresponding schedules. Do not 
information.                                                                send a computer printout or spreadsheets with line numbers and 
J — If you earned or can carry forward credits on Illinois                  dollar amounts attached to a blank copy of the return. 
Schedule 1299-D, Income Tax Credits (for corporations and 
                                                                            Step 2 — Figure your income or loss
fiduciaries), you must check the box on Line J and attach Illinois 
Schedule 1299-D and any other required support listed on                    In accordance with IITA, Section 203(e)(2)(E), if you are filing as part 
Schedule 1299-D to your tax return, even if you are unable to use           of a federal consolidated group, you must compute federal taxable 
any of the credits in this tax year.                                        income as though you had filed a separate federal return.
K — If you are claiming a special depreciation addition or                  If you are filing as a combined taxpayer, see Illinois Schedule UB, 
subtraction modifications on Form IL-1120, check the box and attach         Specific Instructions for Completing Form IL-1120.
Form IL-4562, Special Depreciation, to your tax return.                     Line 1 — Enter the amount from U.S. Form 1120, Line 30, or 
L — If you are claiming other addition or subtraction modifications on      equivalent. Attach a copy of your federal return.
Form IL-1120, check the box and attach Schedule M, Other Additions                  Under federal law, Paycheck Protection Program (PPP) 
and Subtractions (for businesses), to your tax return.                      loan forgiveness is not considered taxable income and the business 
M — If you are claiming related-party expenses modifications on             expenses covered by the PPP loan proceeds are deductible business 
your Form IL-1120, check the box and attach Schedule 80/20,                 expenses. Currently, Illinois tax law has no addition modification 
Related-Party Expenses, to your tax return.                                 to change this; therefore, the same treatment flows through to the 
                                                                            Illinois return and is included as part of federal taxable income. 
N — Enter your entire federal employer identification number. A 
partial FEIN will result in the delay of the processing of your return.     Line 2   —Enter the amount of net operating loss deduction from 
If you are a unitary business group, enter the entire FEIN of the           U.S. Form 1120, Line 29a, or equivalent.
designated agent.                                                                   Do not enter negative amounts on Lines 2 through 8. If 
O — If you are a member of a federal consolidated group, enter the          you are claiming over-accrued taxes, include them on Schedule M, 
entire FEIN of the federal parent. See General Information, “What is        Line 24.
base income/taxable income?” and “What attachments do I need?”              Line 3 — Enter the following amounts excluded from the amount on 
P — Enter your North American Industry Classification System                Line 1 that were paid or accrued to you during the taxable year:
(NAICS) Code. If you are unsure of your code, you can research the          •   Tax-exempt interest from U.S. Form 1120, Schedule M-1, 
information at www.census.gov/naics or www.irs.gov.                             Line 7 (or equivalent). 
Q — Enter your Illinois corporate file (charter) number assigned to                    If you are a life insurance company, the gross 
you by the Illinois Secretary of State. If you are filing a unitary return,     investment income earned from federally tax-exempt sources 
enter the corporate file (charter) number of the designated agent.              must be added back.
R— If you keep your accounting records in a location different from         •   All tax-exempt interest distributions received from regulated 
the address indicated on Line B, enter the city, the two-letter state           investment companies.
abbreviation, and the ZIP Code for the location the records are kept.                  Do not include tax-exempt interest distributions 
S — If you are making the election to treat all of your income other            received from regulated investment companies that are 
than compensation as business income for this tax year, you must                passed through to you. Instead include these passed-through 
check the box on this line and enter zero on Step 4, Lines 24 and 32.           tax-exempt interest distributions on Line 7.
This election must be made by the extended due date of this                 Line 4 — You must add back any amount of Illinois Income and 
return. Once made, the election is irrevocable.                             Replacement taxes and surcharge that you deducted on your 
T — Indicate your method of accounting by checking the appropriate          U.S. Form 1120 to arrive at your federal taxable income. You are not 
box. You must use the same accounting method (e.g., cash or                 required to add back taxes from other states that you included as a 
accrual) and tax year that you used for federal income tax purposes.        federal deduction.
U — Check the box and attach a detailed statement if you must               Line 5 — Enter the addition amount calculated on Form IL-4562, 
adjust your loss or loss carryover due to Discharge of Indebtedness.        Line 4. For more information, see Form IL-4562 Instructions. Attach 
For more information, see the instructions for Line 36, the Loss            Form IL-4562 to your Form IL-1120.
Reduction Worksheet on Page 10 of these instructions, and                   Line 6 — Enter the interest or intangible expenses, or insurance 
Schedules NLD and UB/NLD.                                                   premiums paid to an affiliated company, to the extent these expenses 
V — Check the box if you are a cooperative and completed                    exceed any taxable dividends you received from the affiliated 
Schedule INL, Illinois Net Loss Adjustments for Cooperatives and            company. To compute the amount of this addition, complete Step 2 
REMIC Owners, either to make a first-time election for treatment            of Illinois Schedule 80/20 and enter on Line 6 the total from Illinois 
of income or to figure your patronage and nonpatronage income or            Schedule 80/20, Step 2, Line 9. Attach Illinois Schedule 80/20 to 
loss, or if you are REMIC that completed Schedule INL to make an            your Form IL-1120.
adjustment to Illinois income. Attach Schedule INL to your tax return.

IL-1120 Instructions (R-12/23)                                                                                                         Page 7 of 20

Some interest and intangible expenses may be exempt from this          Line 11 — Enter the River Edge Redevelopment Zone Dividend 
add-back provision. See Illinois Schedule 80/20 Instructions for more  subtraction from Illinois Schedule 1299-B, Line 11. 
information including definitions of “affiliated company,” “intangible Line 12 — Enter the River Edge Redevelopment Zone Interest 
expenses,” and “intangible assets.”                                    subtraction from Illinois Schedule 1299-B, Line 20. 
Line 7   —If you are a partner in a partnership, a shareholder in      Line 13   —Enter the High Impact Business Dividend subtraction from 
an S corporation, or a beneficiary of a trust or an estate, include    Illinois Schedule 1299-B, Line 14. 
your distributive share of additions received from the partnership,    Line 14 — For financial organizations only — Enter the High 
S corporation, trust, or estate on Schedules K-1-P, Partner’s or       Impact Business within a Foreign Trade Zone (or sub-zone) 
Shareholder’s Share of Income, Deductions, Credits, and Recapture,     Interest subtraction from Illinois Schedule 1299-B, Line 23. 
or K-1-T, Beneficiary’s Share of Income and Deductions. If you 
receive multiple schedules because you are a recipient from multiple   Line 15 — Enter the amount of any Contribution subtraction from 
                                                                       Illinois Schedule 1299-B, Line 17.
entities, you should enter the combined total of Step 5, Column 
A, Lines 32 through 37, from all Illinois Schedules K-1-P you          Line 16 — Enter the amount of any contribution made to a job 
receive and Step 5, Column A, Lines 30 through 35, from all Illinois   training project established under the “Tax Increment Allocation 
Schedules K-1-T you receive.                                           Redevelopment Act,” as amended. For further information, see 
                                                                       65 ILCS 5/11-74.4-1 et seq.
       Include tax-exempt interest distributions received from 
regulated investment companies that are passed through to you.         Line 17 — Enter the amount shown on Illinois Schedule J, Foreign 
Pass-through tax-exempt interest distributions from regulated          Dividends, Step 1, Line 24, for foreign dividends received. Attach 
investment companies should not be included on Line 3.                 Illinois Schedule J and U.S. Form 1120, Schedule C (or 
Attach a copy of all Illinois Schedules K-1-P and K-1-T you            equivalent) to your Form IL-1120.
received to your Form IL-1120.                                                 You must use Illinois Schedule J to figure the “foreign 
       The partnership or S corporation is required to send you        dividend gross-up (IRC Section 78)” included in your taxable income 
an Illinois Schedule K-1-P and the trust or estate is required to send if you are electing a foreign tax credit under the provisions of 
you an Illinois Schedule K-1-T, specifically identifying your share of IRC Section 901. Do not include this deduction in other subtractions 
income.                                                                on Illinois Schedule M or Form IL-1120, Line 21. 
Line 8 — Enter the addition amount calculated on the Illinois          Line 18 — Enter the subtraction allowance from Form IL-4562, 
Schedule M, Step 2, Line 11. Attach a copy of Illinois Schedule M      Line 19. Attach Form IL-4562 to your Form IL-1120. 
to your Form IL-1120. The following are examples of items that         Line 19   —Enter the amount from Illinois Schedule 80/20, Step 4, 
must be added to taxable income and are included on the Illinois       Line 23. Attach Illinois Schedule 80/20 to your Form IL-1120.
Schedule M.                                                            You should use Illinois Schedule 80/20 if
•  If you are a regulated investment company, include the              • you added back interest paid to an affiliated company on 
   excess of the net long-term capital gain for the tax year, over       Step 2, Line 6. You may subtract any interest received from that 
   the amount of capital gain dividends designated as such in            company during this tax year, up to the amount of your addition 
   accordance with IRC Section 852(b)(3)(C) and any amount               for interest expense paid to that company. Also, if you added 
   designated under IRC Section 852(b)(3)(D), attributable to the        back intangible expenses from a transaction with an affiliated 
   tax year.                                                             company on Line 6, you may subtract any income you received 
•  Notes, bonds, debentures, or obligations issued by the                during the tax year from similar transactions with the affiliated 
   Governments of Guam, American Samoa, Puerto Rico, the                 company, up to the amount of your addition for intangible 
   Northern Mariana Islands, or the Virgin Islands.                      expense for that company. 
•  Lloyd’s plan of operations loss if reported on your behalf on         To compute the amount of this subtraction, complete Illinois 
   Form IL-1065, Partnership Replacement Tax Return, and                 Schedule 80/20.
   included in your federal taxable income.                            • you are an affiliated company, and you received interest 
                                                                         or intangible income from someone who had to add back the 
•  If you reported income from an asset or activity as business 
                                                                         interest and intangible expense, or insurance premiums on 
   income in prior years, and reported any income from that asset 
                                                                         their Illinois Schedule 80/20. You may subtract your interest or 
   or activity as nonbusiness income on this return, include on this 
                                                                         intangible income from that person.
   line all deductions you claimed for expenses connected with 
   that income in this year and in your two most recent tax years.     Line 20 — Enter your distributive share of subtractions passed 
   See Illinois Schedule NB, Nonbusiness Income, Line 11, and          through to you by a partnership, S corporation, trust, or estate on 
   Illinois Schedule NB Instructions for more information.             Schedules K-1-P or K-1-T. If you receive multiple schedules because 
                                                                       you are a recipient from multiple entities, you should enter the 
Step 3 — Figure your base income or loss                               combined total of Step 5, Column A, Lines 38a and b, and Lines 44 
       Do not enter negative amounts on Lines 10 through 22.           through 47, from all Illinois Schedules K-1-P you receive and Step 
A double deduction is prohibited by IITA, Section 203(g). You          5, Column A, Lines 36a through 38 and Lines 41 through 45, from 
cannot deduct the same item more than once when figuring your          all Illinois Schedules K-1-T you receive. Do not include any amounts 
subtractions.                                                          passed through that are reflected on Illinois Schedule 1299-B. 
Line 10 — Enter the total interest received or accrued from            Attach a copy of all Illinois Schedules K-1-P and K-1-T you 
U.S. Treasury bonds, notes, bills, federal agency obligations, and     received to your Form IL-1120.
savings bonds that is included in your federal taxable income.                 The partnership or S corporation is required to send you an 
You may not subtract anything that is not identified in Illinois       Illinois Schedule K-1-P and the trust or the estate is required to send 
Publication 101, Income Exempt from Tax. This amount is net of any     you an Illinois Schedule K-1-T, specifically identifying your share of 
bond premium amortization deducted federally.                          subtractions.
       You must attach Illinois Schedule 1299-B, River Edge            Line 21 — Enter the subtraction amount calculated on Illinois 
Redevelopment Zone or Foreign Trade Zone (or sub-zone)                 Schedule M (for businesses), Step 3, Line 40. Attach a copy of 
Subtractions (for corporations and fiduciaries), to your               Illinois Schedule M (for businesses) to your Form IL-1120.
Form IL-1120 if you have an amount on Lines 11 through 15.
IL-1120 Instructions (R-12/23)                                                                                                      Page 8 of 20

You may not subtract anything that is not identified below, on                                      Definitions
Schedule M (for businesses), or in Illinois Publication 101. Some       All references to “income” include losses. The following definitions 
subtractions allowed on Illinois Schedule M include                     may be helpful in completing Step 4 of Form IL-1120.
•   any “exempt-interest” dividends, as defined in IRC Section          Business income means all income (other than compensation) that 
    852(b)(5), paid to shareholders for the tax year, by you, as a      may be apportioned by formula among the states in which you are 
    regulated investment company.                                       doing business without violating the Constitution of the United States. 
•   notes, bonds, debentures, or obligations issued by the              All income of a corporation is business income unless it is clearly 
    Governments of Guam, American Samoa, Puerto Rico, the               attributable to only one state and is earned or received through 
    Northern Mariana Islands, or the Virgin Islands, to the extent      activities totally unrelated to any business you are conducting in 
    that you were required to add these amounts to your federal         more than one state. Business income is net of all deductions 
    taxable income.                                                     attributable to that income.
•   Lloyd’s plan of operations income if reported on your behalf on     Commercial domicile is the principal place where your trade or 
    Form IL-1065 and included in your federal taxable income.           business is directed or managed.
•   the amounts disallowed as federal deductions or interest            Nonbusiness income means all income other than business income 
    expenses under IRC Sections 45G(e)(3), 171(a)(2), 265, 280C,        or compensation. For more information about the different types of 
    291(a)(3), 807(a)(2)(B), 807(b)(1)(B) and 832(b)(5)(B)(i).          nonbusiness income, see the Illinois Schedule NB Instructions. 
•   the amount equal to the deduction used to compute the federal       Taxable in other states means you are subject to and actually pay 
    tax credit for restoration of amounts held under claim of right     “tax” in another state. “Tax” means net income tax, franchise tax 
    under IRC Section 1341.                                             measured by net income, franchise tax for the privilege of doing 
•   any other income included on Step 2, Line 9, exempt from            business, and corporate stock tax. You are considered taxable in 
    taxation by Illinois by reason of its Constitution or statutes or   another state if that state has jurisdiction to subject you to a net 
    by the Constitution, treaties, or statutes of the United States.    income tax, even though that state does not impose such a tax. 
    This amount is net of any bond premium amortization deducted        This definition is for purposes of allocating nonbusiness income and 
    federally. For more information, see Illinois Publication 101.      apportioning business income inside or outside Illinois.
Line 23 — This is your base income or loss. Follow the instructions                        Line by Line Instructions
on the form and check a box on Line A or B. You must check one of 
these boxes and follow the instructions for that line.                   You must complete all lines of Step 4.
                                                                        Line 24 — Enter the amount of all nonbusiness income or loss 
Check the box on Line A if
                                                                        included in base income, net of any related deductions, plus 
•   all of your base income or loss is derived inside Illinois; and     any recaptured business expenses from Illinois Schedule NB, 
•   you do not have any income or loss to report on Lines 24, 25,       Nonbusiness Income, Column A. Include any nonbusiness 
    32, or 33.                                                          income you received from Illinois Schedules K-1-P or 
If you check the box on Line A, do not complete Step 4. All of          K-1-T in the amounts reported on Schedule NB. Attach Illinois 
your base income or loss is allocable to Illinois. Skip Step 4, enter   Schedule NB and all Illinois Schedules K-1-P or K-1-T you 
the amount from Step 3, Line 23 on Step 5, Line 35, and complete        received to your Form IL-1120. If you do not have an amount to 
the remainder of the return.                                            report on this line, enter zero.
Check the box on Line B if any of the following apply:                   If you are making the election to treat all income other than 
•   your base income or loss is derived inside and outside Illinois;    compensation as business income for this year, you must check 
•   all of your base income or loss is derived outside Illinois; or     the box in Step 1, Line S, and enter zero here and on Line 32. This 
                                                                        election must be made by the extended due date of this return. 
•   you have income or loss to report on Lines 24, 25, 32, or 33.
                                                                        Once made, the election is irrevocable. 
If you check the box on Line B, you must complete all lines                      Enter the amount of all business income or loss 
                                                                        Line 25 —
of Step 4. Submitting Form IL-1120 with an incomplete Step 4, 
                                                                        included in base income received from any non-unitary partnership, 
including Lines 28, 29, and 30 may result in a delay in processing 
                                                                        partnership included on a Schedule UB, S corporation, trust, or 
your return, further correspondence, and you may be required to 
                                                                        estate, of which you are a partner or a beneficiary. See Illinois 
submit further information to support your filing. See the specific 
                                                                        Schedules K-1-P(2), Partner’s and Shareholder’s Instructions, or 
instructions for Step 4 for more information.
                                                                        K-1-T(2), Beneficiary’s Instructions, for more information. Attach a 
Step 4 — Figure your income allocable to Illinois                       copy of all Illinois Schedules K-1-P and K-1-T you received to 
               General Information                                      your Form IL-1120. If you do not have an amount to report on this 
                                                                        line, enter zero.
Who must complete Step 4?
                                                                         The partnership or S corporation is required to send you 
You mustcheck the box on Line B and complete all lines of Step 
                                                                        an Illinois Schedule K-1-P and Schedule K-1-P(2) and the trust or 
4 if any portion of Line 23, base income or loss, is derived outside 
                                                                        the estate is required to send you an Illinois Schedule K-1-T and 
Illinois, or you have any income or loss to report on Lines 24, 25, 32, 
                                                                        Schedule K-1-T(2), specifically identifying your share of income.
or 33. 
                                                                                   If you are a partner engaged in a unitary business 
If you do not complete all of Step 4, Lines 24 through 34, we may 
                                                                        with your partnership, you must include your distributable share of 
issue a notice and demand proposing 100 percent of income as            the partnership’s business income in your business income. Do not 
being allocated to Illinois, or in the case of a loss return, a notice 
                                                                        subtract this business income on Line 25. 
indicating none of your loss as being allocated to Illinois. 
                                                                        Lines 28 through 30 — 
In order to properly allocate your base income or loss, you need to 
determine what portion of the total base income is business income      You must complete Lines 28 through 30 if any of the following apply:
or loss that is to be apportioned among all the states in which you do  •  your business income or loss is derived inside and outside 
business, and what portion is nonbusiness income or loss that is to     Illinois; 
be allocated to a particular state.                                     •  all of your business income or loss is derived outside Illinois; or
        Unitary filers - You must complete both Step 4 of the           •  you have income or loss to report on Lines 24, 25, 32, or 33.
Schedule UB and Step 4 of the Form IL-1120.                             Follow specific instructions below for Lines 28 through 30.
IL-1120 Instructions (R-12/23)                                                                                                      Page 9 of 20

     If you are an insurance company, financial organization,            Step 5 — Figure your net income
sales company, transportation company, or federally regulated 
                                                                         Line 35 — Follow the instructions on the form. If this amount is a 
exchange, check the appropriate box or boxes in Step 1, Line G 
                                                                         loss, you may be allowed to carry it forward to other years as an 
(insurance company, financial organization, sales, transportation 
                                                                         Illinois net loss deduction (NLD). 
company, or federally regulated exchange) and see “Apportionment 
Formulas” in these instructions.                                         Line 36 — If you were required to reduce the net operating loss 
            If you are a partner engaged in a unitary business           reported on your U.S. Form 1120 because you excluded any 
with your partnership, you must include your distributive share of the   discharge of indebtedness income from this tax year’s gross income, 
“everywhere” and “Illinois” sales factors from the partnership in your   then you may be required to reduce the net loss reported on Line 
“everywhere” and “Illinois” sales factors. For more information, see     35. Use the worksheet on this page to figure your loss reduction. 
86 Ill. Adm. Code Section 100.3380(d).                                   Attach a copy of your federal Form 982, Reduction of Tax Attributes 
                                                                         Due to Discharge of Indebtedness, and a detailed statement, 
Line 28 — Enter your total sales everywhere.                             including the amounts and tax year, of the debt and reason for 
Line 29 — Enter your total sales inside Illinois. If you have no sales   reduction to your Form IL-1120. For more information, see 
in Illinois, enter zero.                                                 86 Ill. Adm. Code Section 100.2310(c). 
     Lines 28 and 29 cannot be less than zero. The amount on             If you are a combined group reporting a combined net loss on 
Line 29 cannot exceed the amount on Line 28.                             Line 35, you may be required to reduce this loss if one or more of 
Line 30 — Divide Line 29 by Line 28 and enter the result, rounded        your group members excluded discharge of indebtedness income 
to six decimal places. The result cannot be greater than one or less     and was required to reduce a federal net operating loss incurred for 
than zero.                                                               this tax year. 
     If you checked the box on Line 23 B and do not complete                    If you also have Illinois net operating loss carryovers to the 
Lines 28, 29, and 30 we may issue a notice and demand proposing          tax year of the debt cancellation, you may also be required to reduce 
100 percent of your income as being allocated to Illinois, or in the     those carryovers. See Illinois Schedules NLD or UB/NLD for more 
case of a loss return, a notice indicating none of your loss as being    information.
allocated to Illinois.                                                   Line 37 — If you have a discharge of indebtedness adjustment 
Line 31 — Follow the instructions on the form.                           on Line 36, add Lines 35 (a negative number) and 36 (a positive 
Line 32 — Enter the amount of nonbusiness income or loss                 number), and enter the result on this line. This amount cannot be 
allocable to Illinois from Illinois Schedule NB, Column B.               greater than zero. 
Include any nonbusiness income and recaptured business                   If you do not have a discharge of indebtedness adjustment, 
expenses you received from Illinois Schedules K-1-P or                   enter zero on Line 36 and the amount from Line 35 on Line 37.
K-1-T in the amounts reported on Schedule NB.  Attach a copy of          Line 38 — Enter your Illinois net loss deduction carryforward 
Schedule NB and all Illinois Schedules K-1-P and K-1-T you               from Illinois Schedule NLD, Step 1, Line 7, total box or Illinois 
received to your Form IL-1120. If you do not have an amount to           Schedule UB/NLD, Step 3, Line 30. Attach Illinois Schedule NLD or 
report on this line, enter zero.                                         UB/NLD to your Form IL-1120. 
     If you checked the box in Step 1, Line S, making the election              For tax years ending on or after December 31, 2021, and 
to treat all of your income other than compensation as business          before December 31, 2024, this amount is limited to $100,000 or 
income, then enter zero on Line 32.                                      less. 
Line 33 — Enter the amount of income or loss reported on Step 4,         If you are a cooperative and you separate your patronage and 
Line 25 that is apportionable to Illinois as reported by the non-unitary nonpatronage income or loss, complete Schedule INL and follow the 
partnership, partnership included on a Schedule UB, S corporation,       instructions for computation of your Illinois net loss deduction.
trust, or estate on Illinois Schedules K-1-P or K-1-T. See Illinois 
Schedules K-1-P(2) or K-1-T(2) for more information. Attach a copy 
of all Illinois Schedules K-1-P and K-1-T you received to your 
Form IL-1120. If you do not have an amount to report on this line, 
enter zero.

                                               Loss Reduction Worksheet 
 1  Enter the amount of the reduction to your federal net operating losses                                                                  
    from federal Form 982. Combined groups see instructions below.                                          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-1120, Line 36.                                                     3 _________________ 
Line 1 — Combined groups must add the amount of federal net operating loss reductions for each group member. All others, 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 the return for the tax year of the debt cancellation.
Line 3 — Follow the instructions on the form.
If one or more of your combined group members is included on a federal consolidated income tax return, the amount of the reductions to the 
member’s federal net operating loss is the amount of the consolidated net operating loss attributable to that member that is reduced under 
IRC Section 108(b) and Treasury Regulations Section 1.1502-28.

IL-1120 Instructions (R-12/23)                                                                                                   Page 10 of 20

If any of the loss being claimed on Line 38, originated from a            For combined unitary filers with one or more members who are 
company other than the one filing this return, check the box on             foreign insurers
Line 38 and attach a detailed statement to your return with               • complete Form IL-1120, Steps 1 through 7, before completing 
•    the FEIN of the company from which you acquired the loss,              Illinois Schedule UB/INS, Tax for a Unitary Business Group with 
•    the reason (e.g., merger) you are allowed to use that company’s        Foreign Insurer Members;
     losses, and                                                          • complete all steps of your Schedule UB, before completing 
•    the date you acquired the loss.                                        Illinois Schedule UB/INS;
                                                                          • complete Schedule UB/INS;
Step 6 — Figure your replacement tax after credits
                                                                          • report your foreign insurer replacement tax reduction on Step 8, 
Line 40 — Follow the instructions on the form.                              Line 51; and
Line 41 — Enter your recapture of investment credits from Illinois        • report your foreign insurer income tax reduction on Step 8, 
Schedule 4255, Recapture of Investment Tax Credits, Step 5,                 Line 54.
Column D, Line 20.                                                                 Follow the instructions on the form. 
                                                                          Line 50 — 
If you claimed any Illinois investment tax credits in a prior year on       If you are a foreign insurer do not apply a tax reduction 
                                                                             
Form IL-477, Replacement Tax Investment Credits, and any of               to this line. Follow the instructions above and on Schedule INS or 
the property was disqualified within 48 months of being placed in         Schedule UB/INS.
service, you must use Illinois Schedule 4255 to compute the amount 
of recapture. Credit must be recaptured in the year the property          Line 51 — Enter your foreign insurer replacement tax reduction from 
became disqualified. For more information, see Schedule 4255              Schedule INS, Step 3, Line 17, or Schedule UB/INS, Step 6, Line 60. 
Instructions.                                                             Attach Schedule INS or Schedule UB/INS.
Line 43 — Enter the amount from Form IL-477, Replacement Tax              Line 52 — Subtract Line 51 from Line 50 and enter the result on this 
Investment Credits, Step 1, Line 13. Attach Form IL-477 and any           line. If Line 51 is blank, enter the amount from Line 50 on Line 52. 
other required support listed on Form IL-477 to your Form                 This is your net replacement tax.
IL-1120.                                                                  Line 53 — Follow the instructions on the form. 
You may claim a replacement tax investment credit of .5 percent              If you are a foreign insurer do not apply a tax reduction 
(.005) of the basis of qualified property placed in service in Illinois   to this line. Follow the instructions above and on Schedule INS or 
during the tax year.                                                      Schedule UB/INS. 
An additional credit of up to .5 percent (.005) of the basis of qualified Line 54 — Enter your foreign insurer income tax reduction from 
property is available if your Illinois base employment increased by       Schedule INS, Step 3, Line 20, or Schedule UB/INS, Step 6, Line 73. 
1 percent (.01) or more over the preceding year, or if your business      Attach Schedule INS or Schedule UB/INS.
is new to Illinois. Excess credit may be carried forward for five         Line 55 — Subtract Line 54 from Line 53 and enter the result on this 
years following the excess credit year. For more information, see         line. If Line 54 is blank, enter the amount from Line 53 on Line 55. 
Form IL-477 Instructions.                                                 This is your net income tax.
Step 7 — Figure your income tax after credits                             Line 56 — Compassionate Use of Medical Cannabis Program Act 
                                                                          surcharge. 
Line 45 — Multiply Line 39 by 7.00 percent (.07). 
Line 46 — Enter the total of your recapture of investment credits                                     Definitions
from Illinois Schedule 4255, Step 5, Columns A, B and C, Line             Organization registrantmeans a corporation, partnership, trust, 
20, and Step 6, Line 27. See Schedule 4255 Instructions for more          limited liability company (LLC), or other organization, that holds 
information regarding the recapture of investment credits.                either a medical cannabis cultivation center registration issued by the 
                                                                          Illinois Department of Agriculture or a medical cannabis dispensary 
If you claimed an Enterprise Zone Credit, River Edge Redevelopment 
                                                                          registration issued by the Illinois Department of Financial and 
Zone Credit, High Impact Business Investment Credit, or Angel 
                                                                          Professional Regulation.
Investment Credit in a prior year on Illinois Schedule 1299-D, and 
any of the property becomes disqualified, you must use Illinois           Transactions subject to the surchargemeans sales and 
Schedule 4255 to compute the amount of recapture. Credit must be          exchanges of
recaptured in the year in which the property became disqualified. For       •    capital assets;
more information, see Illinois Schedule 4255.                               •    depreciable business property;
Line 48 — Enter the amount from Illinois Schedule 1299-D, Income            •    real property used in the trade or business; and
Tax Credits (for corporations and fiduciaries), Line 10. The total of       •    Section 197 intangibles of an organization registrant.
all credits is limited to the total income tax shown on Form IL-1120, 
Line 47. Attach Illinois Schedule 1299-D and any other required                             What is the surcharge?
support listed on Schedule 1299-D to your Form IL-1120. For               For each taxable year beginning or ending during the Compassionate 
more information, see Illinois Schedule 1299-D, Instructions, and         Use of Medical Cannabis Program, a surcharge is imposed on all 
Schedule 1299-I, Income Tax Credits Information and Worksheets.           taxpayers on income arising from the transactions subject to the 
                                                                          surcharge of an organization registrant under the Compassionate 
Step 8 — Figure your refund or balance due                                Use of Medical Cannabis Program Act. 
If you are a foreign insurer, review the instructions below.              The amount of the surcharge is equal to the amount of federal 
For non-unitary foreign insurers                                          income tax liability for the taxable year attributable to the transactions 
•    complete Form IL-1120, Steps 1 through 7, before completing          subject to the surcharge.
     Illinois Schedule INS, Tax for Foreign Insurers;                                  To whom does the surcharge apply?
•    complete Schedule INS;                                               The surcharge is imposed on any taxpayer who incurs a federal 
•    report your foreign insurer replacement tax reduction on Step 8,     income tax liability on the income realized on a “transaction subject 
     Line 51; and                                                         to the surcharge,” including individuals and other taxpayers who 
•    report your foreign insurer income tax reduction on Step 8,          are not themselves the “organization registrant” that engaged in the 
     Line 54.                                                             transaction.
IL-1120 Instructions (R-12/23)                                                                                                   Page 11 of 20

A line has been included on Schedules K-1-P and K-1-T to identify          The surcharge imposed shall not apply if 
the amount of federal income attributable to transactions subject          • the organization gaming license, organization license, or 
to the surcharge that was passed through to you on federal                   racetrack property is transferred as a result of any of the 
Schedule K-1.                                                                following:
      Although a unitary business group filing combined Illinois             •    bankruptcy, a receivership, or a debt adjustment initiated 
returns is treated as a single taxpayer and its members are jointly              by or against the initial licensee or the substantial owners 
and severally liable for any surcharge imposed on the group, the                 of the initial licensee;
group itself is not an organization registrant and transactions of any       •    cancellation, revocation, or termination of any such license 
member that is not itself an organization registrant are not subject to          by the Illinois Gaming Board or the Illinois Racing Board;
the surcharge.
                                                                             •    a determination by the Illinois Gaming Board that transfer 
               How do I figure the surcharge?                                    of the license is in the best interests of Illinois gaming;
If the surcharge applies to you, complete a Surcharge Worksheet on           •    the death of an owner of the equity interest in a licensee;
this page.                                                                   •    acquisition of a controlling interest in the stock or 
For more information, see 86 Ill. Adm. Code Section 100.2060.                    substantially all of the assets of a publicly traded company;
Line 57 — Sale of Assets by Gaming Licensee surcharge                        •    a transfer by a parent company to a wholly owned 
                               Definitions                                       subsidiary; 
Gaming licensee is an organization licensee under the Illinois Horse         •    the transfer or sale to or by one person to another person 
Racing Act of 1975 and/or an organization gaming licensee under                  where both persons were initial owners of the license when 
the Illinois Gambling Act.                                                       the license was issued; or
Transactions subject to the surchargemeans sales and                       • the controlling interest in the organization gaming license, 
exchanges of                                                                 organization license, or racetrack property is transferred in a 
         •    capital assets;                                                transaction to lineal descendants in which no gain or loss is 
                                                                             recognized or as a result of a transaction in accordance with 
         •    depreciable business property;
                                                                             Section 351 of the Internal Revenue Code in which no gain or 
         •    real property used in the trade or business; and               loss is recognized; or 
         •    Section 197 intangibles of a gaming licensee.
                                                                           • live horse racing was not conducted in 2010 at a racetrack 
                    What is the surcharge?                                   located within 3 miles of the Mississippi River under a license 
For each taxable year 2019 through 2027, a surcharge is imposed on           issued pursuant to the Illinois Horse Racing Act of 1975.
all taxpayers on income arising from the transactions subject to the       The transfer of an organization gaming license, organization license, 
surcharge of a gaming licensee.                                            or racetrack property by a person other than the initial licensee to 
The amount of the surcharge is equal to the amount of federal              receive the organization gaming license is not subject to a surcharge. 
income tax liability for the taxable year attributable to the transactions A line has been included on Schedule K-1-P, Partner’s or 
subject to the surcharge.                                                  Shareholder’s Share of Income, Deductions, Credits, and Recapture, 
              To whom does the surcharge apply?                            and Schedule K-1-T, Beneficiary’s Share of Income and Deductions, 
                                                                           to identify the amount of federal income attributable to transactions 
The surcharge is imposed on any taxpayer who incurs a federal 
                                                                           subject to the surcharge that was passed through to you on federal 
income tax liability on the income realized on a “transaction subject 
                                                                           Schedule K-1.
to the surcharge,” including individuals and other taxpayers who 
are not themselves the “gaming licensee” that engaged in the                  Although a unitary business group filing combined Illinois 
transaction.                                                               returns is treated as a single taxpayer and its members are jointly 
                                                                           and severally liable for any surcharge imposed on the group, the 
                                                                           group itself is not a gaming licensee and transactions of any member 
                                                                           that is not itself a gaming licensee are not subject to the surcharge.

                                            Surcharge Worksheet for IL-1120
 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-1120, Step 8, Line 56 and the 
     Column B total on Form IL-1120, Step 8, Line 57.                            3  ______________             3  ______________
 Line 1 — Members of consolidated groups must enter the consolidated federal income tax liability of the affiliated group for the taxable year.
 Line 2 — Members of consolidated groups must enter the federal income tax liability of the affiliated group for the taxable year computed as if
 the transactions subject to surcharge for which taxable income or gain was recognized in that taxable year had not been made. 
IL-1120 Instructions (R-12/23)                                                                                                      Page 12 of 20

                  How do I figure the surcharge?                         To which tax year will my credit apply?
If the surcharge applies to you, complete the Surcharge Worksheet        We will apply your credit to the tax year for which estimated 
on Page 12.                                                              payments currently are due as of the date you file this return, unless 
Line 58 — Add Lines 52, 55, 56, and 57 and enter the total on            you elect to apply the credit to a different tax year. The estimated tax 
this line. This is your total net income and replacement taxes and       payment due dates are the 15th day of the 4th, 6th, 9th, and 12th 
surcharge.                                                               months of your tax year.
Line 59 — Enter the amount of any self-assessed underpayment of            If you wish to apply the credit to a different tax year, see the 
estimated tax penalty you figured on Form IL-2220, Computation of        section entitled “May I apply my credit to a different tax year?” 
Penalties for Businesses, Step 4, Line 22.                               Example 1: You file your 2023 calendar-year return on 
If you annualized your income in Step 6 of Form IL-2220, be sure         September 5, 2024, which is before the third estimated tax due date 
to check the box in Step 1, Line W of this Form IL-1120. Attach a        for 2024 (September 16, 2024, for calendar-year filers). You request 
completed Form IL-2220 to your Form IL-1120.                             your overpayment of $500 be applied against your estimated tax. We 
                                                                         will apply $500 to your 2024 estimated tax. 
       If you do not need to annualize your income and do not 
wish to complete Form IL-2220, we encourage you to let us figure         Example 2: You file your 2023 calendar-year return on 
your penalties and interest and send you a bill instead of determining   December 23, 2024, which is after the last estimated tax due date 
these amounts yourself. We will compute any penalty or interest due      for 2024 (December 16, 2024, for calendar-year filers), but is timely 
and notify you.                                                          for the first estimated tax due date for 2025 (April 15, 2025, for 
                                                                         calendar-year filers). You request your overpayment of $500 be 
Line 61a — Enter the sum of any overpayment from your prior year 
                                                                         applied against your estimated tax. We will apply $500 to your 2025 
tax returns that you requested to be applied to this year’s tax return. 
                                                                         estimated tax.
Take into account any correspondence we may have sent that 
changed the amount of your credit carryforward from the previous           If you are filing your return after the extended due date, you 
year.                                                                    may only elect to claim an overpayment credit for payments received 
                                                                         on or before the date you filed your return. Any payments made after 
Line 61b — Enter the sum of any
                                                                         the date you filed that return can only be claimed as an overpayment 
•  estimated payments made during the tax year,                          credit on a subsequent amended return. 
•  extension payments and other voluntary prepayments made 
  before the original due date of the return, and                        With what date will my credit apply against my tax liability?
• other payments made before the date this return is filed.              If your 2023 return was filed
Line 61c — Enter the amount you claim as Illinois pass-through           ‰  on or before the extended due date of your return 
withholding (including any eligible investment partnership                (November 15, 2024, for calendar-year filers), your credit is 
withholding) reported to you by partnerships, S corporations, or          considered to be paid on the due date of your first estimated 
trusts on Schedule(s) K-1-P or K-1-T. If you received more than           tax installment of your 2024 tax period (April 15, 2024, for 
one Schedule K-1-P or K-1-T, add the amounts of all the schedules         calendar-year filers). 
and enter the total here. Attach copies of the Schedules K-1-P            However, if all or a portion of your overpayment results from 
and K-1-T you received from the pass-through entities to your             payments made after the due date of that first estimated tax 
Form IL-1120. Schedules K-1-P and K-1-T, Step 1, Line 3, must be          installment, that portion of your credit is considered to be paid on 
completed or the pass-through withholding reported on this line may       the date you made the payment.
not be credited to your return.                                           Example 1: You file your 2023 calendar-year return on or 
       Partners in an investment partnership may not be eligible to       before the extended due date of your return requesting $500 
claim a Schedule K-1-P, Step 7, Line 55 amount reported to them by the    be applied against estimated tax. All of your payments are 
investment partnership. See Schedule K-1-P(2) for information about       made before the original due date of your return. Your credit 
when a partner may claim investment partnership withholding credit.       of $500 will be considered to be paid on April 15, 2024. 
See “What is pass-through withholding?” under “General Information”       Example 2: You file your 2023 calendar-year return on or 
in these instructions for more information.                               before the extended due date of your return requesting $500 
Line 61d   —Enter the amount of any PTE tax credit shown on               be applied as a credit. Your overpayment includes payments 
Schedule(s) K-1-P and Schedule(s) K-1-T you received. Attach              of $400 you made before the original due date of your return, 
Schedules K-1-P and K-1-T.                                                and a $100 payment you made on June 3, 2024. Your credit 
                                                                          of $400 will be considered to be paid on April 15, 2024. 
Line 61e   —Enter the amount of any Illinois withholding from             The remaining $100 credit will be considered to be paid on 
gambling and sports wagering winnings shown on Form(s) W-2G. 
                                                                          June 3, 2024. 
Attach Forms W-2G.
                                                                         ‰  after the extended due date of your return, your credit is 
Line 64 — Enter the amount of overpayment you elect to be applied 
                                                                          considered to be paid on the date you filed the return on which 
against your estimated tax obligation. Check the box on this line 
                                                                          you made the election.
if this is your final return and any remaining carryforward is being 
transferred to another entity. Attach a detailed statement to your        Example 3: You file your 2023 calendar-year return on 
return listing the FEIN of the entity receiving the credit carryforward,  December 2, 2024, requesting $500 be applied as a 
the date the credit was transferred, and the reason for the transfer.     credit. Your credit of $500 will be considered to be paid on 
                                                                          December 2, 2024, because you filed your return after the 
       Step 1, Line C, must also be completed if you are 
                                                                          extended due date of your 2023 calendar-year return.
transferring an overpayment to another entity. 
Your credit carryforward will not be applied if you do not file a        May I apply my credit to a different tax year?
processable return.                                                      Yes. If you wish to apply your credit to a tax year other than the one 
       Your credit carryforward may be reduced by us due to              described above, you must submit a separate request in writing to: 
corrections we make to your return, or to satisfy any unpaid tax,        ILLINOIS DEPARTMENT OF REVENUE
penalty, and interest due for this year or any other year. If we reduce  PO BOX 19004
your credit carryforward, it may result in a late-payment penalty in a   SPRINGFIELD IL 62794-9004
subsequent year.
IL-1120 Instructions (R-12/23)                                                                                                 Page 13 of 20

         Submit your request at the time you file your return. Do not   We do not support international ACH transactions. We will 
submit your return to this address.                                    only deposit refunds into accounts located within the United States. 
Your request must include                                              If your financial institution is located outside the United States, we 
•  your name,                                                          will send you a check instead of depositing your refund into your 
                                                                       account.
•  your FEIN, 
                                                                       Line 67 — Follow the instructions on the form. This is your amount 
•  the tax year of the return creating the overpayment, and
                                                                       of tax due that must be paid in full if $1 or more. If you are not paying 
•  the tax year you wish to have the credit apply.                     electronically, complete a payment voucher, Form IL-1120-V, make 
If you do not follow these instructions, your election will be         your check or money order payable to “Illinois Department of 
considered invalid and we will not apply your credit as you requested. Revenue” ,and attach them to the front of the return.
If you submit a valid request, we will apply your credit as you         If you are paying electronically do not complete and attach 
requested and notify you. Once made, your election to change the       a payment voucher.
tax year to which your credit will apply is irrevocable. Requests will You should also enter the amount you are paying in the box 
be worked in the order we receive them.                                located on the top of Page 1 of the Form IL-1120.
         You may only apply your credit to tax years occurring after   We encourage you to let us figure your penalties and interest and 
the year of the return creating the overpayment. If you request to     send you a bill instead of determining these amounts yourself. 
apply more credit than our records show you have available, we         We will compute any penalty and interest due and notify you. See 
will apply the maximum amount available and notify you of the          General Information, “What are the penalties and interest?”
difference.
Line 65 — Follow the instructions on the form. Your refund will not    Step 9 — Signature, date, and paid preparer’s 
be issued if you do not file a processable return.                     information
         Your refund may be reduced by us to satisfy any unpaid tax,   You must sign and date your return. If you do not sign your return, 
penalty, and interest due for this year or any other year.             it will not be considered filed and you may be subject to a non-filer 
Line 66 — Direct deposit information.                                  penalty.
                                                                       If you pay someone to prepare your return, the income tax return 
If you choose to deposit your refund directly into your checking or 
                                                                       preparer must also sign and date the return, enter the preparer tax 
savings account, you must 
                                                                       identification number (PTIN) issued to them by the Internal Revenue 
•    Enter your routing number.                                        Service, and provide their firm’s name, FEIN, address, and phone 
•    For a checking account, your routing number must be nine          number. 
   digits and the first two digits must be 01 through 12 or 21         If you want to allow the paid preparer listed in this step to discuss 
   through 32.                                                         this return with IDOR, check the box. This authorization will allow 
    The sample check following these instructions has an example       your paid preparer to answer any questions that arise during the 
   of a routing number.                                                processing of your return, call us with questions about your return, 
•    For a savings account, you must contact your financial            and receive or respond to notices we send. The authorization will 
   institution for your routing number.                                automatically end no later than the due date for filing your next year’s 
•    Check the appropriate box to indicate whether you want your       tax return (excluding extensions.) You may revoke the authorization 
   refund deposited into your checking or savings account.             at any time by calling or writing us.
•    Enter your account number. 
•    For a checking account, your account number may be up to 17 
   digits. 
    The sample check following these instructions has an example 
   of an account number. 
•    For a savings account, you must contact your 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-1120 Instructions (R-12/23)                                                                                                     Page 14 of 20

                                           Apportionment Formulas
Certain businesses that derive their income from inside and outside     • IRC Section 965 inclusion;
Illinois require an apportionment formula. The following definitions    • Global Intangible Low-Taxed Income (GILTI) income;
will help in completing Step 4.                                         • subpart F income as defined in IRC Section 952; and
   Direct writing company — an insurance company whose direct           • any item of income excluded or deducted from base income.
   insurance premiums are 50 percent or more of its total insurance 
                                                                        For more information on what should be included in the numerator 
   premiums.
                                                                        or denominator of your sales factor, see 86 Ill. Adm. Code 
   Reinsurer — an insurance company whose reinsurance                   Sections 100.3370 and 100.3380.
   premiums assumed are more than 50 percent of its total 
                                                                        Sales of tangible personal property are in Illinois if
   insurance premiums.
                                                                        • the property is delivered or shipped from anywhere to a 
   Total insurance premiums — the sum of both direct insurance 
                                                                          purchaser in Illinois, other than the United States government, 
   premiums and reinsurance premiums assumed without any 
                                                                          regardless of the Free on Board (f.o.b.) point or other conditions 
   reduction for reinsurance ceded.
                                                                          of the sale;
   Annual statement — the annual statement required to be filed with 
                                                                        • the property is shipped from Illinois to any place and the 
   the Director of Insurance of the State of Illinois.
                                                                          purchaser is the United States government; or
   Life insurance company — an insurance company taxable 
                                                                        • the property is shipped from Illinois to another state and you are 
   under IRC Section 801, for the tax year.
                                                                          not taxable in the state of the purchaser. 
   Nonlife mutual and nonlife stock insurance companies — an 
                                                                        For radio and television broadcasting (including cable and satellite 
   insurance company taxable under IRC Section 831, for the tax 
                                                                        broadcasting), the following sales are in Illinois:
   year.
                                                                        • advertising revenue received from an advertiser whose 
   Business income — See Step 4 - General Instructions, 
                                                                          headquarters is in Illinois;
   “Business income” under Definitions.
                                                                        • fees received by a broadcaster from its viewers or listeners in 
   Financial organization — any bank, bank holding company, 
                                                                          Illinois;
   trust company, savings bank, industrial bank, land bank, safe 
   deposit company, private banker, savings and loan association,       • in the case of fees received by a broadcaster from the producer 
   building and loan association, credit union, currency exchange,        or other owner of the contents of a program, the percentage of 
   cooperative bank, small loan company, sales finance company,           the fees equal to the percentage of the broadcast’s viewing or 
   investment company, or any person which is owned by a bank or          listening audience located in Illinois; or 
   bank holding company.                                                • in the case of a person who owns the contents of a program 
   Revenue miles — A revenue mile is the transportation of one            and who provides the contents to a broadcaster for a fee 
   passenger, or one net ton of freight, the distance of one mile.        or other charge, the fees received for that program from a 
                                                                          broadcaster located in Illinois. 
   Federally regulated exchange — A federally regulated exchange 
   is                                                                   If the “sales everywhere” amount includes gross receipts from 
                                                                        the licensing, sale, or other disposition of patents, copyrights, 
      • a registered entity as defined in 7 U.S.C. Sections 
                                                                        trademarks, and other similar items of intangible personal property, 
        1a(40)(A), 1a(40)(B), or 1a(40)(C);
                                                                        and the receipts are not covered by the broadcasting rules, then 
      • an exchange or clearing agency as defined in 15 U.S.C.          these receipts should be attributed to Illinois to the extent the item 
        Sections 78c (a)(1) or 78c (a)(23);                             is used in Illinois during the year the gross receipts are included in 
      • any entity regulated under any successor regulatory             gross income. An item is used in Illinois if 
        structure to a registered entity, exchange, or clearing         • a patent is employed in production, fabrication, manufacturing, 
        agency; or                                                        or other processing in Illinois or if the patented product is 
      • any member of the same unitary business group if                  produced in Illinois;
        50 percent or more of the business receipts of the unitary      • copyrighted material is printed or other publications originated 
        business group for the taxable year are attributable to the       in Illinois; or
        matching, execution, or clearing of transactions conducted 
                                                                        • the commercial domicile of the licensee or purchaser of a 
        by members of the group described in the first three bullet 
                                                                          trademark or other item of intangible personal property is in 
        points above.
                                                                          Illinois.
What if I am a sales company?                                                     If you cannot determine from your books and records in 
If you checked the box in Step 1, Line G, indicating that you are a     which state an item is used, do not include the gross receipts from 
sales company and your income is derived from inside and outside        that item in the numerator or the denominator of the sales factor.
Illinois, you must also check the box on Line B of Step 3, Line 23. You For sales of telecommunications services, the following sales are in 
must apportion your business income as follows:                         Illinois:
Include gross receipts from the license, sale or other disposition      • sales of telecommunications service sold on a call-by-call basis, 
of patents, copyrights, trademarks, and similar items of intangible       where the call both originates and terminates in Illinois, or the 
personal property in the numerator and denominator of your sales          call either originates or terminates in Illinois and the customer’s 
factor only if these gross receipts are more than 50 percent of the       service address is in Illinois;
total gross receipts included in gross income for this tax year and     • retail sales of postpaid telecommunications service if the point 
each of the two immediately preceding tax years.                          of origination of the signal is in Illinois;
Do not include the following items of income in the numerator or        • retail sales of prepaid telecommunications service where 
denominator of your sales factor:                                         the purchaser receives the prepaid card or other means of 
 • dividends;                                                             conveyance at a location in Illinois;
 • amounts included under IRC Section 78;                               • charges imposed at a channel termination point in Illinois;
IL-1120 Instructions (R-12/23)                                                                                                     Page 15 of 20

• charges for channel mileage between two channel termination            Direct writing companies — Life insurance companies, nonlife 
  points in Illinois;                                                    mutual, and nonlife stock insurance companies   —On Lines 28 
• charges for channel mileage between one or more channel                and 29, cross out the word “sales” and write “Insurance premiums.” 
  termination points in Illinois and one or more channel                 On Line 28, enter the amount of total direct premiums (gross direct 
  termination points outside Illinois, times the number of channel       premiums less return premiums) from the annual statement (relating 
  termination points in Illinois divided by total termination            to life insurance premiums, annuity considerations, and accident and 
  channels;                                                              health insurance premiums, including policy, membership, and other 
• charges for services ancillary to sales of services in Illinois.       fees).
  If you provide ancillary services, but cannot determine where          On Line 29, enter the amount of direct premiums on property or risk 
  the sales of the related services are located, your sales are in       located in Illinois from the annual statement.
  Illinois if your customer is in Illinois;                              Divide Line 29 by Line 28 and enter the result, rounded to six decimal 
• access fees charged to a reseller of telecommunication for a           places, on Line 30. Complete Lines 31 through 34 as indicated in 
  call that both originates and terminates in Illinois;                  the specific instructions for Step 4, Figure your income allocable to 
• 50 percent of access fees charged to a reseller of                     Illinois.
  telecommunications services for an interstate call that originates     Reinsurance – Life insurance companies, nonlife mutual, and 
  or terminates in Illinois; and                                         nonlife stock insurance companies – If more than 50 percent 
• end user access line charges, if the customer’s service address        of your premiums are from reinsurance, include your reinsurance 
  is in Illinois.                                                        premiums from all sources on Line 28 and your reinsurance 
                                                                         premiums from Illinois sources on Line 29, along with any direct 
For more information, see 86 Ill. Adm. Code Section 100.3371.
                                                                         premiums on those lines. 
Illinois lottery winnings and proceeds from sales or other transfers of 
                                                                         You may determine your reinsurance premiums from Illinois sources 
rights to lottery winnings are in Illinois. 
                                                                         using one of the following methods. You must use the same method 
For taxable years ending on or after December 31, 2021, payments         for all future years unless you receive written permission from IDOR 
from Illinois sources of wagering and winnings conducted in              to change methods.
accordance with the Sports Wagering Act are allocable to Illinois. 
                                                                         Method A – Determine the reinsurance premiums assumed, relating 
For taxable years ending on or after December 31, 2019, gross            to property or risk located in Illinois.
receipts from winnings from pari-mutuel wagering conducted at a 
wagering facility licensed under the Illinois Horse Racing Act of 1975   Method B – For each company from which reinsurance is accepted, 
                                                                         determine the ceding insurance company’s ratio of direct premiums 
or from winnings from gambling games conducted on a riverboat or 
                                                                         on property or risk located in Illinois, to its total direct premiums. 
in a casino or organization gaming facility licensed under the Illinois 
                                                                         Apply this ratio to the reinsurance premiums assumed from that 
Gambling Act are Illinois sales and must be included in the numerator 
                                                                         company. For example, reinsurer R assumes premiums of $40,000 
of the sales factor. 
                                                                         and $50,000 from ceding companies A and B respectively. Company 
Sales, other than sales of tangible personal property or                 A’s ratio of direct premiums on property or risk located in Illinois, 
telecommunications service, and gross receipts from broadcasting,        to its total direct premiums, is 10 percent and Company B’s ratio 
or the licensing, sale, or other disposition of patents, copyrights,     is 20 percent. Reinsurer R has $14,000 of reinsurance premiums 
trademarks, and similar items of intangible personal property, or        assumed on property or risk located in Illinois, consisting of $4,000 
Illinois lottery winnings or sales proceeds, are in Illinois as follows: from ceding Company A (10 percent of $40,000) and $10,000 from 
• sales or leases of real property in Illinois;                          ceding Company B (20 percent of $50,000).
• leases or rentals of tangible personal property, to the extent it is   Method C – Determine the amount of reinsurance premiums 
  located in Illinois during the rental period;                          assumed from insurance companies commercially domiciled in 
• interest, net gains, and other items of income from intangible         Illinois. Include in reinsurance premiums assumed in Illinois, all 
  personal property received by a taxpayer who is a dealer in            premiums for reinsurance accepted from insurance companies 
  that property from a customer who is a resident of Illinois (for       commercially domiciled in Illinois.
  individuals) or who is commercially domiciled in Illinois (for all     For more information, see 86 Ill. Adm. Code Section 100.3420.
  other customers). A taxpayer without actual knowledge of the 
  residence or commercial domicile of a customer may use the             What if I am a financial organization?
  customer’s billing address.                                            If you checked the box in Step 1, Line G, indicating that you are a 
• interest, net gains, and other items of income from intangible         financial organization and your income is derived from inside and 
  personal property received by a taxpayer who is not a dealer           outside Illinois, you must also check the box on Line B of Step 3, 
  in that property, if the income-producing activity is performed        Line 23. You must apportion your business income as follows:
  in Illinois or if the income-producing activity is performed inside    On Line 28, enter the amount of gross receipts from all sources. 
  and outside Illinois, and a greater proportion of the income-          On Line 29, enter the amount of gross receipts from:
  producing activity is performed inside Illinois rather than outside    • sales or leases of real property located in Illinois;
  Illinois, based on performance costs; or
                                                                         • leases or rentals of tangible personal property, to the extent it is 
• in all other cases, if the services are received in Illinois.            located in Illinois during the rental period;
For more information, see 86 Ill. Adm. Code Section 100.3370.            • interest income, commissions, fees, gains on disposition, and 
What if I am an insurance company?                                         other receipts from:
If you checked the box in Step 1, Line G, indicating that you are an       –   loans secured by real or tangible personal property located 
insurance company taxable under IRC Section 801 or 831, and your                  in Illinois;
income is derived from inside and outside Illinois, you must also          –   unsecured consumer loans to a resident of Illinois; 
check the box on Line B of Step 3, Line 23. You must apportion your        –   unsecured commercial or installment loans where the 
business income as follows:                                                       proceeds of the loan are applied in Illinois. If the place of 
                                                                                  application cannot be determined, the gross receipts are in 
                                                                                  Illinois if the office of the borrower from which the loan was 
IL-1120 Instructions (R-12/23)                                                                                                  Page 16 of 20

          negotiated is in Illinois. If neither the place of application On Line 28, enter the amount of business income from all sources. 
          nor the office of the borrower can be determined, do           On Line 29, enter the amount of business income from:
          not include the gross receipts in Line 28 or 29; and            •  receipts attributable to transactions executed on a physical 
   –      credit card receivables billed to a customer in Illinois.           trading floor located in Illinois;
•  sales of travelers checks and money orders at a location in            •  receipts attributable to all other matching, execution, or clearing 
   Illinois;                                                                  transactions. This includes, without limitation, receipts from the 
•  interest, dividends, net gains, and other income from investment           provision of matching, execution, or clearing services to another 
   and trading assets and activities, where the majority of your              entity. 
   contacts with the asset or activity is in Illinois. The state to           –  Multiply this amount by 27.54 percent (.2754) for tax years  
   which an asset or activity is assigned in your books and records                ending on or after December 31, 2013; and
   for federal or state regulatory requirements is presumed to be         •  all other receipts for sales in Illinois.
   proper unless a majority of the evidence shows otherwise or 
                                                                         Divide Line 29 by Line 28 and enter the result, rounded to six decimal 
   you do not have a fixed place of business in that state. If the 
                                                                         places, on Line 30. Complete Lines 31 through 34 as indicated in 
   place with the majority of contacts cannot be determined under 
                                                                         the specific instructions for Step 4, Figure your income allocable to 
   these rules, the gross receipts are in Illinois if your commercial 
                                                                         Illinois.
   domicile is in Illinois. 
                                                                                   For any tax year, the Illinois apportionment percentage 
•  any other transaction, if the gross receipts would be included on 
                                                                         computed using this formula may never be less than the Illinois 
   Line 29 under the general instructions for Line 29. 
                                                                         apportionment percentage computed for the first full tax year ending 
For more information, see 86 Ill. Adm. Code Section 100.3405.            on or after December 31, 2013, for which the taxpayer used this 
Divide Line 29 by Line 28 and enter the result, rounded to six decimal   formula. 
places, on Line 30. Complete Lines 31 through 34 as indicated in 
the specific instructions for Step 4, Figure your income allocable to    What if I have two or more discrete businesses?
Illinois.                                                                If you are a corporation engaged in the conduct of two or more 
                                                                         discrete businesses, you are entitled to compute your Illinois tax 
What if I am a transportation company?                                   liability by determining the income attributable to each of those 
If you checked the box in Step 1, Line G, indicating that you are        businesses, and apportioning that income by application of a 
a company that furnishes transportation service both inside and          separate apportionment formula determined for each. You must 
outside Illinois, you must also check the box on Line B of Step 3,       attach the separate computations to Form IL-1120. However, you 
Line 23. Cross out the word “sales” on Lines 28 and 29 and write         must report the aggregate as if the business were one taxable entity. 
“Transportation.” You must apportion business income as follows:         For more information, see 86 Ill. Adm. Code Section 100.3010(b).
A  Transportation by airline — On Line 28, enter the amount of 
   revenue miles everywhere. On Line 29, enter the amount of             What if I am a member of a unitary business 
   revenue miles in Illinois. Divide Line 29 by Line 28 and enter the    group?
   result, rounded to six decimal places, on Line 30.                    The term “unitary business group” means a group of persons related 
B  Other modes of transportation — On Line 28, enter the amount          through common ownership, whose business activities are integrated 
   of your gross receipts from providing transportation services.        with, dependent on, and contribute to each other. In the case of a 
   On Line 29, enter the amount of gross receipts from Illinois, as      corporation, common ownership is defined as the direct or indirect 
   follows:                                                              ownership or control of more than 50 percent of the outstanding 
   •      all gross receipts from transportation that both originates    voting stock of a corporation.
          and terminates in Illinois; and                                If you determine that you are a member of a unitary business group, 
   •      gross receipts from interstate transportation, multiplied      see Illinois Schedule UB and Subgroup Schedule Instructions for 
          by a fraction equal to the miles traveled in Illinois on all   more information regarding your Illinois filing requirements and the 
          interstate trips divided by miles traveled everywhere on all   computation of your Illinois tax liability. 
          interstate trips.                                              What if I want to use an alternative 
  Divide Line 29 by Line 28 and enter the result, rounded to six 
                                                                         apportionment formula?
  decimal places, on Line 30.
                                                                         If the apportionment methods prescribed by IITA, Sections 304(a) 
C  Transportation of both freight and passengers or                      through (e), and (h) do not fairly and accurately represent the market 
   transportation by airline and other modes — Compute                   for your goods, services, or other sources of business income, 
   separate fractions for freight transportation and passenger           or lead to a grossly distorted result, you may want to use a more 
   transportation by airline and for freight transportation and          accurate alternative method. If you want to use an alternative 
   passenger transportation by all other modes of transportation         apportionment method, you must receive permission from IDOR 
   under A and B, in the list above and enter on Line 30 the average         to filing your return. 
                                                                         prior
   of those fractions, weighted by the gross receipts from freight or 
   passenger transportation by airline or other modes, rounded to six              Your request for an alternative apportionment formula must 
   decimal places.                                                       follow the requirements of the 86 Ill. Adm. Code Section 100.3390. 
                                                                         See the regulations or contact IDOR for more information.
For more information, see 86 Ill. Adm. Code Section 100.3450. 
                                                                         If you receive permission to use an alternative formula, you must 
Complete Lines 31 through 34 as indicated in the specific instructions   attach to your Form IL-1120 a copy of the letter granting permission.
for Step 4, Figure your income allocable to Illinois. 
                                                                         Send your request to: 
What if I am a federally regulated exchange?                                ILLINOIS DEPARTMENT OF REVENUE
If you checked the box in Step 1, Line G, indicating that you are a         LEGAL SERVICES OFFICE
federally regulated exchange and your income is derived from inside         SENIOR COUNSEL - INCOME TAX, 5-500
and outside Illinois, cross out the word “sales” on Lines 28 and 29         101 WEST JEFFERSON STREET
and write “Exchange.” You may apportion your business income as             SPRINGFIELD IL 62702
follows:
IL-1120 Instructions (R-12/23)                                                                                                    Page 17 of 20

                               Appendix A - Extension Payment Worksheet
Use this worksheet if all of the following apply to you:
•     you are required to file Form IL-1120,
•     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 9 of the worksheet shows you owe tentative tax, pay the full amount due either by filing and paying with Form IL-1120-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 Payment Worksheet (for your records)
  1 Enter the total income and replacement taxes you expect to owe for this tax year (including recapture 
     of investment credits using Schedule 4255 and surcharges from the Compassionate Use of Medical 
     Cannabis Program Act and the sale of assets by gaming licensee).                                      1 
  2 Enter your Illinois estimated income and replacement tax payments 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 you expect to receive.      3 
  4 Enter any previous tax payment made.                                                                   4 
  5 Enter the estimated income tax credits you expect this year.                                           5 
  6 Enter the estimated replacement tax investment credits you expect this year.                           6 
  7 Enter the total of any Foreign Insurer income and replacement tax reduction.                           7 
  8 Add lines 2 through 7 and enter the result. This is the total of your tax payments and credits.        8 
  9 Subtract Line 8 from Line 1 and enter the result. This is your tentative tax due. 
     Enter the result here and on Form IL-1120-V.                                                          9 

Extension Payment Worksheet Instructions
Line 1   —  Enter the total amount of income and replacement taxes you expect to owe for the tax year (including recapture of investment  
            credits using Schedule 4255 and surcharges from the Compassionate Use of Medical Cannabis Program Act or the sale of   
            assets by gaming licensee).
Line 2   —  Enter the total amount of estimated income and replacement tax paid and any  overpayment you elected to be credited for this 
            tax year.
Line 3  —   Enter the total amount of Illinois income tax withheld on Form(s) W-2G, and the amount of pass-through withholding (including  
            any eligible investment partnership withholding) paid on your behalf or PTE tax credit received and reported to you on Illinois  
            Schedule K-1-P, Partner’s or Shareholder’s Share of Income,  Deductions, Credits, and Recapture, or Schedule K-1-T,           
            Beneficiary’s Share of Income and Deductions.
Line 4   —  Enter the amount of Illinois income and replacement tax you previously paid for this tax year. 
Line 5   —  Enter the total of any estimated income tax credits (including any credit carryforward) from Schedule 1299-D, Income Tax Credits.
Line 6   —  Enter the amount of any estimated replacement tax investment credits from Form IL-477, Replacement Tax Investment Credit.
Line 7  —  Enter the total of any Foreign Insurer income and replacement tax reduction from  Form IL-1120, Step 8, Lines 51 and 54. 
Line 8   —  Follow the instructions on the worksheet.
Line 9   —  Subtract Line 8 from Line 1. This is your tentative tax due. If Line 9 is $1 or more, you must pay the amount due. If Line 9 is less  
            than $1, you do not have to pay. Do not attach your federal Form 7004 to your Form IL-1120-V.

         Pay electronically at tax.illinois.gov or use Form IL-1120-V, Payment Voucher for Corporate Income and Replacement Tax, to 
mail your payment. 

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-1120 Instructions (R-12/23)                                                                               Page 18 of 20

                               Appendix B - Estimated Payment Worksheets

If you reasonably expect your income and replacement tax liability to exceed $400 after Illinois tax credits and 
withholding payments made on your behalf, complete this worksheet to compute your next tax year’s estimated tax. 
Keep this record for your files. 
      If your income changes during the year, complete the amended worksheet on the next page.

  1  Enter the amount of Illinois net income expected in the next tax year.                                    1 
  2  Multiply Line 1 by 9.5 percent (.095) and enter the result.                                               2 
  3  Enter the amount of recapture of investment credits expected in the next tax year.                        3 
  4  Enter the amount of surcharge expected from the Compassionate Use of Medical Cannabis Program Act 
    and the sale of assets by gaming licensee in the next tax year. See the Form IL-1120 Instructions 
    for more information.                                                                                      4 

  5  Add Lines 2 through 4 and enter the result.                                                               5 
  6  Enter the amount of Illinois tax credits expected in the next tax year as calculated on the corresponding 
    Form IL-477 and 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 any Illinois withholding from gambling and sports wagering winnings shown 
    on any next tax year Form(s) W-2G 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. If $400 or less, stop. You do not have to make 
    estimated tax payments. If more than $400, continue to Line 11.                                            10 
11   Subtract Line 6 from Line 5 and enter the result.                                                         11 
12   Divide Line 11 by 4. This is the amount of each of your estimated tax payments.                           12 

      You may use pass-through withholding (including any eligible investment partnership withholding) paid on your behalf or PTE tax 
      credit expected on any Schedule(s) K-1-P or K-1-T you received to reduce the estimated tax payment for the quarter in which the tax 
      year shown on the Schedule K-1-P or K-1-T falls and any subsequent tax payment until the entire credit is used.
      You may use Illinois withholding from gambling and sports wagering winnings shown on any Form(s) W-2G you receive to reduce 
      the estimated tax payment for the quarter in which the winnings were received and any subsequent tax payment until the entire 
      credit is used.
      If you made the election to credit a prior year overpayment to the next tax year and
      •       the election was made on or before the extended due date of that prior year return, use the credit to reduce the first      
              estimated tax payment and any subsequent tax payments until the entire credit is used. 
                   If all or a portion of the credit results from payments made after the due date of your first estimated tax installment  
              of that prior year return, that portion of your credit is considered to be paid on the date you made the payment. If that   
              payment date is on or before an estimated payment due date, you may use that portion of the credit to reduce that           
              estimated tax payment and any subsequent tax payments until the entire credit is used.
      •       the election was made after the extended due date of that prior year return, the credit will be treated as paid on the date    
              you submitted the election. If that payment date is on or before an estimated payment due date, you may use the credit to   
              reduce that estimated tax payment and any subsequent tax payments until the entire credit is used.

      Pay electronically at tax.illinois.gov or use Form IL-1120-V to mail your payment. 

Failure to use the correct voucher for your estimated 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-1120 Instructions (R-12/23)                                                                                                   Page 19 of 20

Appendix B- continued

Complete this amended worksheet if a change occurs in your original estimated tax.

  1  Enter the amount of Illinois net income expected in the next tax year.                                    1 
  2  Multiply Line 1 by 9.5 percent (.095) and enter the result.                                               2 
  3  Enter the amount of recapture of investment credits expected in the next tax year.                        3 
  4  Enter the amount of surcharge expected from the Compassionate Use of Medical Cannabis 
    Program Act and the sale of assets by gaming licensee in the next tax year.                                4 
  5  Add Lines 2 through 4 and enter the result.                                                               5 
  6  Enter the amount of Illinois tax credits expected in the next tax year as calculated on the corresponding
    Form IL-477 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 to be received in the next tax year on any  
    Schedule K-1-P or Schedule K-1-T you receive.                                                              7 
  8  Enter the amount of any Illinois withholding from gambling and sports wagering winnings 
    shown on the next tax year Form(s) W-2G 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. If $400 or less, stop. You do not have to make 
    estimated tax payments. If more than $400, continue to Line 11.                                           10 
  11 Subtract Line 6 from Line 5 and enter the result.                                                        11 
  12 Divide Line 11 by 4.                                                                                     12 
  13 Multiply Line 12 by the number of previously due estimated payments.                                     13 
  14 Enter the amount of any estimated tax payments, timely prior year overpayments, timely pass-through 
    withholding (including any eligible investment partnership withholding) made on your behalf or  
    PTE tax credit received, and timely Illinois gambling and sports wagering winnings withholding shown  
    on Form(s) W-2G you received. See the information under Line 12 on the previous page to determine  
    if your credit for a prior year overpayment or withholding amount is considered timely.                   14 
15   Subtract Line 14 from Line 13 and enter the result. This amount may be negative.                         15 
  16 Add Lines 12 and 15 and enter the result. 
    If positive, this is the amount due on your next payment due date. 
     If zero or negative, the amount due on your next payment due date is zero.
    If Line 16 is negative, continue to Line 17. Otherwise, stop here.                                        16
  17 If Line 16 is negative, enter that amount as a positive number.                                          17 
  18 Subtract Line 17 from Line 12 and enter the result. 
    This is the amount due on the following due date, if applicable.                                          18 

IL-1120 Instructions (R-12/23)                                                                                   Page 20 of 20