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Illinois Department of Revenue
Schedule CR IL-1040 Instructions 2023
General Information
What is the purpose of Schedule CR? If your employer withheld tax or you paid tax to these states on your
Schedule CR, Credit for Tax Paid to Other States, allows you to compensation, you must claim a refund from that state. You may
take a credit for income taxes you paid to other states on income not claim a credit on Schedule CR for that tax. You must file the
you received while a resident of Illinois. You are allowed this credit appropriate forms with that state to receive a refund of tax withheld in
only if you filed a required tax return with the other state. You must error.
use information from the tax return you filed with the other state to The reciprocal agreements do not prohibit subdivisions of these
complete Schedule CR. states from imposing a tax on your compensation. For example,
Apart-year resident may only take a credit on income earned while if you were subject to tax by a city in Kentucky while you were an
a resident of Illinois. Illinois resident, you may claim a credit for that local tax.
A nonresident may not take a credit on Illinois Schedule CR. In addition, because of differences in state laws, you may be
considered a resident by one of these states and required to pay
What taxes qualify for the credit? their income taxes, even though you are an Illinois resident under
Taxes that qualify for the credit are income taxes you paid to another Illinois law. In that case, you may claim a credit for the tax paid.
state of the United States, the District of Columbia, the Commonwealth
of Puerto Rico, or any territory or possession of the United States, Where can I find specific formulas to figure tax paid
or to a political subdivision (e.g., county, city, local) of one of these to other states?
jurisdictions. No credit is allowed for taxes paid to the federal When you figure credit for tax paid to other states, you must consider
government or to foreign countries or to their political subdivisions. that tax from the other states’ returns may not be calculated in the
To qualify for this credit, a tax must be deductible as state and local same manner as on your Illinois return. For a list of formulas that
income taxes paid on your federal Schedule A, Itemized Deductions, identify the tax forms, line numbers, additions, and subtractions that
whether or not you actually claimed the deduction. An alternative you must use to compute the other states’ tax for Schedule CR, see
minimum tax measured by income may qualify. See Publication 111, Publication 111.
Illinois Schedule CR for Individuals, for details.
Note: No credit is allowed for interest or penalties imposed on you, What if I need additional assistance or forms?
even in connection with an income tax. You may claim the credit Visit our website at tax.illinois.gov for assistance, forms or
for income taxes paid on your behalf (e.g., by withholding or with a schedules.
composite return), but only if you are the person legally liable for the
tax (i.e., if you would be required to pay the tax if it had not been paid Write us at Illinois Department of Revenue, P.O. Box 19001,
Springfield, Illinois 62794-9001.
on your behalf).
Call 1 800 732-8866 or 217 782-3336 (TTY at 1 800 544-5304).
What if I earned income in Iowa, Kentucky, Michigan, Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m.
or Wisconsin? (Springfield office) and 8:30 a.m. to 5:00 p.m. (all other offices),
Monday through Friday.
If you earned wages, salaries, tips, or other employee compensation
from an employer in Iowa, Kentucky, Michigan, or Wisconsin while
you were a resident of Illinois, you are covered by a reciprocal
agreement between that state and Illinois and are not taxed by that
state on your compensation. However, you may be taxed on other
income.
Specific Instructions
Step 1: Provide the following information Part-year Residents - In Column A of each line, enter the amounts
Enter your name and Social Security number as shown on your Form as reported on the equivalent line of your Schedule NR, Column B.
IL-1040, Individual Income Tax Return. For example, you would enter the amount from Column B, Line 5 of
your Schedule NR on Column A, Line 1 of your Schedule CR.
Step 2: Figure the Illinois and non-Illinois portions
Note: If Column B of your Schedule NR included any amount from
of your federal adjusted gross income, and Step 3: the period while you were not a resident, do not include that amount
Figure your Illinois additions and subtractions in Column A.
Column A - Total Note: If you filed a joint federal income tax return and are filing a
separate Illinois return, include in Column A only your share of the
Note: Line 15, Other income, should not include any net operating loss amounts from your joint federal income tax return. Complete the
(NOL) carryforward to this year that is available to carry forward to next
Allocation Worksheet in the Form IL-1040 Instructions to determine
year. See Form IL-1040, Line 1 instructions.
your share of the amounts from your joint federal return.
Illinois Residents - In Column A of each line, except Line 15, enter
the amounts exactly as reported on the corresponding line of your
federal income tax return or your Form IL-1040. Do not separate your
Illinois and non-Illinois portion or exclude any items when completing
Column A.
IL-1040 Schedule CR Instructions (R-12/23) Printed by authority of the State of Illinois. Electronic only, one copy. Page 1 of 6
