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Illinois Department of Revenue

Schedule CR IL-1040 Instructions 2022
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 not
take a credit for income taxes you paid to other states on income claim a credit on Schedule CR for that tax. You must file the appropriate
you received while a resident of Illinois. You are allowed this credit forms with that state to receive a refund of tax withheld in error.
only if you filed a required tax return with the other state. You must The reciprocal agreements do not prohibit subdivisions of these
use information from the tax return you filed with the other state to states from imposing a tax on your compensation. For example, if you
complete Schedule CR. were subject to tax by a city in Kentucky while you were an Illinois
Apart-year resident may only take a credit on income earned while resident, you may claim a credit for that local tax.
a resident of Illinois. In addition, because of differences in state laws, you may be
A nonresident may not take a credit on Illinois Schedule CR. considered a resident by one of these states and required to pay their
income taxes, even though you are an Illinois resident under Illinois
What taxes qualify for the credit? law. In that case, you may claim a credit for the tax paid.
Taxes that qualify for the credit are income taxes you paid to another
state of the United States, the District of Columbia, the Commonwealth Where can I find specific formulas to figure tax paid
of Puerto Rico, or any territory or possession of the United States, to other states?
or to a political subdivision (e.g., county, city, local) of one of these When you figure credit for tax paid to other states, you must consider
jurisdictions. No credit is allowed for taxes paid to the federal that tax from the other states’ returns may not be calculated in the
government or to foreign countries or to their political subdivisions. same manner as on your Illinois return. For a list of formulas that
To qualify for this credit, a tax must be deductible as state and local identify the tax forms, line numbers, additions, and subtractions that
income taxes paid on your federal Schedule A, Itemized Deductions, you must use to compute the other states’ tax for Schedule CR, see
whether or not you actually claimed the deduction. An alternative Publication 111.
minimum tax measured by income may qualify. See Publication 111,
Illinois Schedule CR for Individuals, for details. What if I need additional assistance or forms?
No credit is allowed for interest or penalties imposed on you, Visit our website at tax.illinois.gov for assistance, forms or
even in connection with an income tax. You may claim the credit schedules.
for income taxes paid on your behalf (e.g., by withholding or with a
Write us at Illinois Department of Revenue, P.O. Box 19001,
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 Springfield, Illinois 62794-9001.
on your behalf). Call 1 800 732-8866 or 217 782-3336 (TDD, telecommunications
device for the deaf, 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),
If you earned wages, salaries, tips, or other employee compensation Monday through Friday.
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
of your federal adjusted gross income, and Step 3: If Column B of your Schedule NR included any amount from
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 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
Line 15, Other income, should not include any net operating amounts from your joint federal income tax return. Complete the
loss (NOL) carryforward to this year that is available to carry forward to Allocation Worksheet in the Form IL-1040 Instructions to determine
next 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-12/22) Printed by authority of the State of Illinois. Electronic only, one copy. Page 1 of 6

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Column B – Non-Illinois Portion Line 4: Taxable refunds, credits, or offsets of state and
In Column B for each line, include only the portion of an amount local income taxes
included in Column A of that line that is non-Illinois income or Do not enter an amount on this line.
deduction, as determined using Illinois’ rules for sourcing income.
Do not include any amount that is not included in Column A, or any Line 5: Alimony received
portion of an amount that is included in Column A unless specifically Do not enter an amount on this line.
instructed to do so below or in Publication 111. Line 6: Business income or loss
Illinois Residents - To determine the amount to enter in Column B Business income or loss you received as part of a business
of each line, read and follow the specific instructions below. conducted in Illinois is sourced to Illinois. If your business income or
Part-year Residents - To determine the amount to enter in Column B loss was received from an Illinois business conducted
of each line, apply the specific instructions for each line below to the entirely in Illinois, enter zero on this line.
amount in Column A. Do not include any amount from the period while entirely outside Illinois, enter the amount from Column A.
you were a nonresident. See Publication 111 for specific examples. from both inside and outside Illinois, complete the IAF Worksheet
on Page 5 to figure the non-Illinois portion of that income, and
Do not enter an amount on the shaded lines. include the amount from Line 5 of the worksheet.
Partnerships, S corporations, trusts, or estates Line 7: Capital gain or loss
If you received an Illinois Schedule K-1-P or K-1-T, complete the Enter any capital gains or losses, other than business capital gains
Partnership, S corporation, Trust (PST) Business Income Worksheet or losses, you received from the sale of real property or tangible
on Page 6 for each applicable line. personal property located outside Illinois at the time of the sale or
Income exchange. Nonbusiness capital gains or losses that resulted from
your sale of intangibles are sourced to Illinois and cannot be included.
Line 1: Wages, salaries, tips, etc. Capital gains or losses you received as part of a business conducted
Enter the amount of wages not shown as Illinois wages on the state in Illinois are taxed by Illinois. If you received your business income or
copy of the W-2 form(s) you received. Do not include wages taxed loss from an Illinois business conducted
by another state if they are also shown as Illinois wages. Also do entirely in Illinois, enter zero on this line.
not include any wages you received for working in Iowa, Kentucky, entirely outside Illinois, enter the amount from Column A.
Michigan, or Wisconsin while you were an Illinois resident, unless you from both inside and outside Illinois, complete the IAF Worksheet
paid tax to a city or county on these wages. on Page 5 to figure the non-Illinois portion of your capital
If the Illinois wages as shown on your W-2 form(s) are gain or loss, and include the amount from Line 5 of the worksheet.
incorrect, attach a letter from your employer, on company letterhead, Line 8: Other gains or losses
stating the correct amount of Illinois wages and the number of work Other gains or losses you received as part of a business conducted
days performed in each state. If any of the compensation was earned in Illinois are taxed by Illinois. All gains or losses you included on
in a prior tax year, (i.e. deferred compensation or exercised stock federal Form 4797, Sales of Business Property, are classified as
options), the statement must include a detailed calculation of how business income.
this income has been sourced. We will not accept a letter from you or If this income or loss was received from an Illinois business conducted
your tax preparer. entirely in Illinois, enter zero.
entirely outside Illinois, enter the amount from Column A.
If you are claiming a credit for tax paid to a local government, from both inside and outside Illinois, complete the IAF Worksheet
attach copies of your local tax return or W-2 form(s) showing local on Page 5 to figure the non-Illinois portion of that income, and
wages. include the amount from Line 5 of the worksheet.
If you are a dual resident of Illinois and Iowa, Kentucky, Line 9: Taxable IRA distributions
Michigan, or Wisconsin and you are claiming this credit, attach Do not enter an amount on this line.
copies of the out-of-state returns.
Line 10: Taxable pensions and annuities
If any of your wages are for military pay, be sure to complete Do not enter an amount on this line.
Step 3, Line 39 and Schedule M. Line 11: Rental real estate, royalties, partnerships, S
Line 2: Taxable interest corporations, trusts, etc.
Interest income you received, other than business interest income, is Figure the total amount to enter on this line by adding
Illinois income. Do not include any nonbusiness interest. the net amount of income or loss, other than business income,
Business interest income you received as part of a business you received from
conducted in Illinois is sourced to Illinois. If this income was received real estate located outside Illinois.
from an Illinois business conducted tangible personal property, to the extent it was used outside
entirely in Illinois, enter zero on this line. Illinois.
entirely outside Illinois, enter the amount from Column A.
from both inside and outside Illinois, complete the IAF Worksheet You can determine the extent of non-Illinois use of tangible
on Page 5 to figure the non-Illinois portion of that income, and personal property by dividing the number of days the property
include the amount from Line 5 of the worksheet. was outside Illinois during the rental or royalty period in the taxable
year, by the total number of days in the rental or royalty period in the
Line 3: Ordinary dividends taxable year. Multiply the resulting fraction by the net amount of rents
Dividend income you received, other than business dividend income, or royalties received.
is Illinois income. Do not include any nonbusiness dividends. patents and copyrights (the amount that was used outside
Business dividend income you received as part of a business Illinois).
conducted in Illinois is sourced to Illinois. If this income was received
from an Illinois business conducted A patent is used outside Illinois when it is employed in the
entirely in Illinois, enter zero on this line. production, fabrication, manufacturing, or other processing
entirely outside Illinois, enter the amount from Column A. of a product outside Illinois, or when a patented product is
from both inside and outside Illinois, complete the IAF Worksheet produced outside Illinois.
on Page 5 to figure the non-Illinois portion of that income, and
include the amount from Line 5 of the worksheet.

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A copyright is used outside Illinois when the printing or Line 20: Health savings account deduction
publication originated outside Illinois. Enter the amount from Column A.
income or loss you received from a non-Illinois business. If your
business was conducted Line 21: Moving expenses for members of the armed
entirely in Illinois, enter zero. forces
entirely outside Illinois, enter the amount from Column A. Enter the amount of expenses you paid if you are a member of the
both inside and outside Illinois, complete the IAF Worksheet Armed Forces on active duty and, due to a military order, you move
on Page 5 to figure the non-Illinois portion of that income, to Illinois because of a permanent change of station. See Federal
and include the amount from Line 5 of the worksheet. Form 3903 Instructions.
income or loss you received from partnerships, S corporations, Non-Illinois self-employment decimal for Lines 22, 23, and 24
trusts, and estates as directed by Illinois Schedules K-1-P and Complete the following calculation to determine your non-Illinois
K-1-T. Complete the PST Worksheet on Page 6 to figure the self-employment (NSE) decimal for use on Lines 22, 23, and 24. The
amount to include. NSE decimal may not exceed 1.0 or be less than zero.
Line 12: Farm income or loss
All farm income or loss that you included on federal Schedule F, Profit ÷ = .
or Loss from Farming, and that you received from an Illinois farm is Self-employment Self-employment income Non-Illinois self-
income included Schedule SE employment (NSE)
taxed by Illinois. If your farm income or loss was received in Column B Part I, Line 3 decimal
entirely from Illinois sources, enter zero. plus 5a
entirely outside Illinois, enter the amount from Column A. Line 22: Deductible part of self-employment tax
from both inside and outside Illinois, complete the IAF Worksheet Figure the amount of your non-Illinois deduction for self-employment
on Page 5 to figure the non-Illinois portion of your farm income, tax by completing the following calculation, and enter the amount on
and include the amount from Line 5 of the worksheet. Line 22, Column B.
Line 13: Unemployment compensation
Enter the amount of unemployment compensation you received from . × = $
any state other than Illinois. NSE decimal Column A, Line 22 Column B, Line 22
Line 14: Taxable Social Security benefits Line 23: Self-employed SEP, SIMPLE, and qualified plans
Do not enter an amount on this line. Figure the amount of your non-Illinois deduction by completing the
following calculation using the NSE decimal, and enter the amount
Line 15: Other income on Line 23, Column B.
Please include a detailed description of each type of other income
on the line provided or on an attached sheet. Do not include any . × = $
amount in Column B except net operating loss (NOL) carryforwards, NSE decimal Column A, Line 23 Column B, Line 23
other states’ gambling, sports wagering, and lottery winnings, and Line 24: Self-employed health insurance deduction
recoveries of items deducted in prior years. Figure the amount of your non-Illinois deduction by completing the
Payments of winnings from sports wagering are conducted in following calculation using the NSE decimal, and enter the amount
accordance with the Sports Wagering Act for tax years ending on or on Line 24, Column B.
after December 31, 2021.
If your business net operating loss (NOL) was . × = $
from a partnership or an S corporation, complete the PST NSE decimal Column A, Line 24 Column B, Line 24
Worksheet on Page 6 to figure the amount to include. If this deduction is for health insurance premiums paid for you (or
from a business you conducted entirely in Illinois, do not reimbursed to you) by an S corporation and reported to you as
include this amount. wages, include the amount in Column B if your wages from the S
from a business you conducted inside and outside Illinois, corporation are included in Line 1, Column B.
figure the non-Illinois portion on the IAF Worksheet, Page 5,
and include the amount from Line 5 of the worksheet. Line 25: Penalty on early withdrawal of savings
Enter the penalty amount you paid when you withdrew money from
Do not include any NOL carryforward to this year that is a business savings account earning interest that is allocated outside
available to carry forward to next year in Column B. See Form IL-1040, Illinois. If only a portion of the interest on the account is allocated
Line 1 instructions. outside Illinois, allocate the same portion of this penalty here.
Include the amount of income you received from a recovery or Line 26: Alimony paid
reimbursement for a deduction claimed in a prior year to the Enter the amount from Column A.
extent that the deduction was allocated to other states.
Line 27: IRA deduction
Lines 16 and 17: Follow the instructions on the form. Figure the amount of your non-Illinois IRA deduction by completing
Adjustments to Income the calculation below, and enter the result on Line 27, Column B.
Line 18: Educator expenses ÷ =
Write the amount of educator expenses you deducted this year for Wages, salaries, tips, earned income Wages, salaries, tips, alimony, earned
received from a non-Illinois source income received from all sources
which the related compensation is allocable to other states. If only a
portion of the compensation related to your total business expenses × $=
Decimal Column A, Line 27 Column B, Line 27
shown in Column A is allocated outside Illinois, allocate the same
portion of these expenses in Column B. Line 28: Student loan interest deduction
Enter the amount from Column A.
Line 19: Certain business expenses of reservists,
performing artists, and fee-basis government officials Line 29: RESERVED
Enter the amount of business expenses you deducted this year for Line 30: Archer MSA deduction
which the related compensation is allocable to other states. If only a Enter the amount from Column A.
portion of the compensation related to your total business expenses Line 31: Other adjustments
shown in Column A is allocated outside Illinois, allocate the same Use this line only if the Internal Revenue Service instructs you to
portion of these expenses in Column B. include an amount on your federal Form 1040 or 1040-SR, Schedule
1, Line 24 that is not listed as a separate line item on the federal Form
1040 or 1040-SR, Schedule 1, Lines 11 through 23. Include only the
amount of unlisted items, not the Line 25 total.
IL-1040 Schedule CR Instructions (R-12/22) Page 3 of 6

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If the federal adjustment is Restoration of amounts held under claim of right from your
an item of income, you may include the subtraction in Column B Schedule M, Line 15, are included in Column B to the extent
only if the amount is included as income in Column B on another the claim of right income would be included in Column B if you
line of this schedule. had received that income this year.
an expenditure related to income, you must include in Column B Contributions to a job training project from your Schedule M, Line 16.
the same percentage of Column A as the percentage of the total Contributions to a qualified Illinois ABLE account from your
related income included in Column B on any line of this schedule. Schedule M, Line 20.
an expenditure unrelated to income, you must include in Use the instructions for each of the following items to figure the
Column B the amount from Column A. amount to include:
Lines 32 and 33: Follow the instructions on the form. Enter the amount of the following items from Column A, Line 39
that is included as income in Column B of any line.
Step 3: Figure your Illinois additions and subtractions August 1, 1969, valuation limitation
Additions River Edge Redevelopment Zone and High Impact
Line 34: Federally tax-exempt interest and dividend income Business Dividend Subtraction
Interest and dividends, except from a business, are Illinois income. Do not Ridesharing money and other benefits
include any nonbusiness interest or dividends. Payment of life insurance, endowment, or annuity benefits
Federally tax-exempt interest income you received as part of a business received
conducted in Illinois is taxed by Illinois. If this income was received from an Lloyd’s plan of operation income if reported on your
Illinois business conducted behalf on Form IL-1065
entirely in Illinois, enter zero. Illinois Pre-Need Cemetery Sales Act trust income
Education loan repayments to primary care physicians
entirely outside Illinois, enter the amount from Column A.
Reparations or other amounts received as a victim of
both inside and outside Illinois, complete the IAF Worksheet
persecution by Nazi Germany
on Page 5 to figure the non-Illinois portion of that income, and Interest from obligations of Illinois state and local government
include the amount from Line 5 of the worksheet. Your child’s interest income reported on U.S. Form 8814
Line 35: Other additions Military pay - Enter the amount of military pay you received
Include the following: for duty in the U.S. Armed Forces. This income must be included
any distributive share of additions received from partnerships, in your federal adjusted gross income and in Column B, Line 1.
S corporations, trusts, and estates as reported on Schedules U.S. government obligations - Enter the amount of any interest
K-1-P and K-1-T. Complete the PST Worksheet on Page 6 to income from U.S. Treasury bonds, bills, notes, savings bonds,
figure the amount to include. and U. S. agency interest you included in Column B, Line 2.
any Lloyd’s plan of operation loss if reported on your behalf on Distributive share of subtractions from a partnership,
Form IL-1065, Partnership Replacement Tax Return, and included S corporation, trust, or estate - Enter the amount reported
in your adjusted gross income. to you on the Schedule K-1-P or Schedule K-1-T from the
any nonbusiness amount you reported on Form IL-4562, partnership, S corporation, trust, or estate. Complete the
Special Depreciation, that resulted from non-Illinois property. PST Worksheet on Page 6 to figure the amount to include.
any business amounts you reported on Form IL-4562 and the Expenses of federally tax-exempt income and federal credits -
addition for Student-Assistance Contribution Credit claimed on For expenses related to
Schedule 1299-C, Income Tax Subtractions and Credits. If federal credits, multiply the amount in Column A by the
the amount was incurred in an Illinois business conducted percentage of the federally-allowed portion of these deductions
entirely in Illinois, enter zero. included in Column B of Line 33.
entirely outside Illinois, enter the amount from Column A. income that is exempt from federal taxation, multiply the
both inside and outside Illinois, complete the IAF Worksheet amount in Column A by the percentage of that income included
on Page 5 to figure the non-Illinois portion of these amounts, in Column B for the line on which this income was added back
and include the amount from Line 5 of the worksheet. to your base income.
recapture of deductions for contributions to Illinois college savings Special Depreciation subtraction -Enter any amount you
and ABLE plans transferred to an out-of-state plan. reported on Form IL-4562, Special Depreciation. If this
business expense recapture only if you reported income from depreciation was incurred in a business conducted
an asset or activity as business income in prior years and entirely in Illinois, enter zero.
reported any income earned while you were a nonresident entirely outside Illinois, enter the amount from Column A.
from that asset or activity as nonbusiness income on your both inside and outside Illinois, complete the IAF Worksheet
Schedule NR for this year. on Page 5 to figure the non-Illinois portion of that income, and
Line 36: Follow the instructions on the form. include the amount from Line 5 of the worksheet.
Recovery of items previously deducted on federal Form 1040,
Subtractions
Schedule A - Enter any amount from Column A that is included
Line 37: Federally taxed Social Security and retirement as income in Column B, Line 15.
income Non-U.S. bond interest - Enter the amount of any interest
Do not enter any amount on this line except retirement income paid income from bonds issued by the governments of Guam,
directly to you as a retired partner included in Column A, but only to Puerto Rico, or the Virgin Islands, or the mutual mortgage
the extent that income is included in Line 11, Column B. insurance fund that you included in Column B, Line 2 or Line 34.
Line 38: Illinois Income Tax overpayment Railroad sick pay and railroad unemployment - Enter any
Do not enter an amount on this line. amount from Column A that is included as income in Column B,
Line 1.
Line 39: Other subtractions
Unjust imprisonment compensation awarded by Illinois Court
Include the total amount of the following:
of Claims - Enter zero on this line.
“Bright Start” or “Bright Directions” College Savings Pool Distributions from “Bright Start,” “College Illinois,” and “Bright
contributions and “College Illinois” Prepaid Tuition Program Directions” College savings plans - Enter zero on this line.
contributions from your Schedule M, Other Additions and
Subtractions for Individuals, Line 13. Lines 40 and 41 – Follow the instructions on the form.

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Step 4: Figure your Schedule CR decimal State Reference Chart
Lines 42 and 43 – Follow the instructions on the form. State* Specific state tax that qualifies
Step 5: Part-year residents only Alabama Ala. Code of 1975 § 40-18-24.4
Lines 44 through 49 – Follow the instructions on the form. Ariz. Rev. Stat. § 43-1014
Arizona
Do not complete Step 5 if you lived in Illinois the entire tax
year. Arkansas Ark. Code Ann. § 26-65-01
Step 6: Figure your credit California Cal. Rev. & Tax Code § 19900
Line 50 – If you are claiming a credit for tax paid to Iowa, Colorado Colo. Rev. Stat. § 39-22-340
Kentucky, Michigan, or Wisconsin, check the box for the appropriate
state. See “What if I earned income in Iowa, Kentucky, Michigan, or Connecticut Conn. Gen. Stat. § 12-699
Wisconsin?” under “General Information” for more details. Georgia GA. Code Ann. §§ 48-7-21(b)(7)(C) and 48-
Line 51 – Follow the instructions on the form. Enter the total tax 7-23(b)
you paid to all other states (including tax paid to cities or other local Idaho Code Ann. § 63-3026B
Idaho
government) minus all credits allowed, except credits for payments
you actually made to the other states or payments made on your Kansas HB2239 (2021 SL CH 63) § 4
behalf. For full-year residents, you would report 100% of the taxes
paid. Louisiana LA. Rev. Stat. Ann. § 47:287.732.2
For a part-year resident, include only the tax on income earned Maryland MD. Code Ann. Tax-Gen. § 10-102.1
or received while an Illinois resident. For example, you and your
spouse moved to Illinois from Indiana at the beginning of April. You Massachusetts ALM GL ch. 63D, § 2
worked in Indiana the entire year, earning $30,000 in wages evenly Michigan MCL § 206.254 and 206.675
throughout the year. Your spouse worked in Indiana the entire year,
earning $24,000 in wages evenly throughout the year. Of your total Minnesota Minn. Stat. Ann. § 289A.08(7a)
wage income, $40,500 of such income was earned during the Miss. Code Ann. § 27-7-26
period you were an Illinois resident. Your only source of income Mississippi
taxable in Indiana is your $54,000 of wage income. You paid Missouri § 143.436 R.S.Mo.
$1,000 in income tax to Indiana. The amount of Indiana tax you may
include on Line 51 is determined as follows: New Jersey N.J. Stat. Ann. § 54A: 12-3
New Mexico N.M. Stat. § 7-3A-10
$40,500
$1,000 × = $750. New York NY CLS Tax § 862
$54,000
North Carolina N.C. Gen. Stat. §§ 105-131.1A and 105-
Do not enter the tax withheld from your Form W-2 on Line 154.1
51 unless you are including tax paid to a city or local government
that does not require you to file a tax return. See Publication 111 for Ohio ORC Ann. 5747.38
a list of formulas that identify the tax forms, line numbers, additions, Oklahoma Okl. Stat. tit. 68, § 2355.1P-1
and subtractions that you must use to compute the other states’ tax.
Oregon 2021 Or. Laws Ch. 589 § 3
Taxes paid to other states should only be included if Rhode Island R.I. Gen. Laws § 44-11-2.3
the income tax paid in the other state was for the same income
included on Form IL-1040, Line 11. If you were a partner or South Carolina S.C. Code Ann. § 12-6-545(G)
shareholder of a pass-through entity which paid income tax to Utah Utah Code Ann. § 59-10-1403.2
another state substantially similar to the income tax imposed under
Section 201(p) of the Illinois Income Tax Act (IITA), you may treat Virginia Va. Code Ann. § 58.1-390.3
your allocable share of such tax paid by the pass-through entity
as tax you paid. Your allocable share of the tax paid by the pass- Wisconsin Wis. Stat. §§ 71.21(6) and 71.365(4m)
through entity is equal to the amount of tax paid to the other state *Chart information is current as of the date of these instructions and may be
subject to change as more states add new legislation.
by the pass-through entity times the ratio of your share of the
pass-through entity’s income allocated and apportioned to such Lines 52 through 55 – Follow the instructions on the form.
other state divided by the total amount of the pass-through entity’s
income allocated and apportioned to such other state. See the
State Reference Chart for a list of states IDOR has determined
have a tax substantially similar to the tax imposed under Section
201(p) of the IITA.

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Business or Farm Income
Apportionment Formula (IAF) Worksheet

You must complete this worksheet if you received business or farm income from both inside and outside of Illinois. If you have more than
one source of business or farm income, make copies of this worksheet and prepare a separate worksheet for each line of the Schedule CR
on which you reported business or farm income.
Worksheet for Schedule CR, Line
Column A Column B Column C
Total sales everywhere Total sales inside Illinois Apportionment Factor
Column B ÷Column A
1 Line 1 is 1.000000. 1 1 0 0 0 0 0 0
2 Figure your apportionment factor. .00 .00 2
3 Subtract Line 2 from Line 1. 3
4 Enter the amount of your business or farm income from Schedule CR, Column A. 4 00
5 Apportioned Income – Multiply Line 4 by the Line 3 decimal. Enter the result here and on the
corresponding line on Schedule CR, Column B. 5 00
Keep a copy of this worksheet with your income tax records.

IAF Worksheet Instructions
Line 1: Line 1 must be 1.000000. Column C
Line 2: Apportionment factor Divide Column B by Column A. Carry the decimal to six places.
This is your apportionment factor.
Column A
Enter the total amount of sales you received from both inside and Lines 3 through 5: Follow the instructions on the worksheet.
outside Illinois. If you need more detailed instructions, see the instructions
Column B for Form IL-1120, Corporation Income and Replacement Tax
Enter the total amount of sales you received in Illinois. Return, Step 4. If your business income was derived from a
transportation company, an insurance company, or a financial
organization, see Form IL-1120 Specific Instructions for
“Apportionment Formulas.”

Partnership, S corporation, Trust (PST)
Business Income Worksheet

You must complete this worksheet if you received an Illinois Schedule K-1-P or K-1-T from a partnership, S corporation, trust, or
estate. Make copies of this worksheet and prepare a separate worksheet for each line of the Schedule CR on which you reported amounts
from these schedules.
Worksheet for Schedule CR, Line
1 Line 1 is 1. 000000. 1 1 0 0 0 0 0 0
2 Enter the amount from Step 1, Line 4 of Schedule K-1-P or K-1-T. 2
3 Subtract Line 2 from Line 1. 3
4 Income from Schedule CR, Column A. 4 00
5 Multiply Line 3 by Line 4, and enter the result in Schedule CR, Column B. 5 00

Keep a copy of this worksheet with your income tax records.

PST Worksheet Instructions

Line 1: Line 1 must be 1.000000. Lines 3 through 5: Follow the instructions on the worksheet.
Line 2: Enter the decimal from Schedule K-1-P or K-1-T,
Step 1, Line 4.

Page 6 of 6 IL-1040 Schedule CR Instructions (R-12/22)

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