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Illinois AGI, additions, and subtractions for an individual return

SOLVEDby IntuitLacerte Tax3Updated November 11, 2021

In Screen 51.071, Illinois Modifications, enter an amount in Adjusted gross income[A] to adjust Federal Adjusted Gross Income on the Illinois income tax return.

Per the Illinois instructions: If you have a federal NOL this year, you may write a negative amount on Line 1. However, you must reduce that amount by any NOL that you carry back to prior years. If you deducted an NOL carryforward on your federal return for this year, the amount on Line 1 should be your federal adjusted gross income computed without deducting the NOL carryforward, minus the amount of “Modified Taxable Income” on Line 9 of the federal Worksheet for NOL Carryover found in Table 1 of IRS Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts.

Illinois Additions input:

  • Child's federally tax-exempt interest [O] - An entry here overrides the automatic calculation of the child's federally tax-exempt interest.
  • Distributive share of pass-through additions [A] - Enter an amount to adjust the automatic calculation of the distributive share of pass-through additions. Federally tax exempt interest from pass-through entities will automatically be included as an addition.
  • Lloyds plan of operation loss - Enter the amount of Lloyds plan of operations loss.
  • Earnings on QTP Organized in Another State [O] - An addition for earnings received on another state’s Qualified Tuition Plan will be automatically calculated based on entries in Screen 14, Educational Distributions (ESA’s & QTP’s). An entry here overrides the program’s calculation.
  • Business Expense Recapture
  • Recapture of deductions for contributions to Illinois college savings plans transferred to an out-of-state plan
  • Student-Assistance Contribution Credit taken on 1299-C [A] - Enter the amount of Student-Assistance Contribution Credit taken on Schedule 1299-C with Credit Code 5420 from Column F. The program uses the current year credit computed for the Schedule M addback. This entry should be used to adjust the addback for any credit received from a distributable share.
  • Recapture of contributions to college savings plans - Enter contributions from a qualified tuition program that were withdrawn or refunded and not used for qualified expenses. This amount is reported on Schedule M, Line 10.
  • Other Additions (Ctrl+E) - Enter the individual amounts and descriptions of all items that qualify as other additions. The program includes amounts entered in on Form IL-1040, line 3 and Schedule NR, line 39 when applicable, and prints a supporting statement.

Illinois Subtractions input:

  • Benefits from Employee and Retirement Plans [A] - Enter the taxpayer’s federally taxed portion of redeemed U.S. retirement bonds and government retirement or disability plans (including military plans). The program includes distribution from qualified employee benefit plans, individual retirement accounts, and self-employment retirement plans.
  • Retirement Payments - Enter the taxpayer’s retirement payments received as a retired partner. An amount entered here is included in the retirement income subtraction on Form IL-1040, line 5, and Schedule NR, line 41 when applicable.
  • State Tax Refund [O] - Enter an amount to override the state tax refund calculated on line 7 of Form IL-1040. If the taxpayer itemizes deductions on the federal return, the program subtracts the state income tax refund from Form IL-1040, line 4.
  • Distributive share of pass-through subtractions [A] - Interest income from U.S. government bonds entered on pass through entities carries to the IL Schedule M automatically. Enter any additional amounts of Distributive share of pass-through subtractions to report on Schedule M.
  • Restoration of amounts held under claim of right doctrine
  • Contributions to a job training project
  • Expenses related to federal credits or federally tax-exempt income - Enter expenses related to federal credits or federally tax-exempt income to deduct from IL income.
  • Military Pay Earned While a Resident [O] - Enter an amount to override the taxpayer’s military pay earned while a resident of Illinois that is included in federal AGI. An amount entered here is included in the military pay subtraction on Form IL-1040, line 6, and Schedule NR, line 42 when applicable.
  • U.S. Government Obligations [A] - To adjust the amount of U.S. government obligations printed on Form IL-1040 line 8, enter the amount of the adjustment. The program will calculate the subtraction automatically using interest and dividend items that are entered throughout the program and marked as U.S. obligations.
  • August 1, 1969 Valuation Limitation (Schedule F, line 17) - Enter the limited capital gain from the sale or exchange of certain property that the taxpayer acquired before August 1, 1969 (from a manually prepared Schedule F, line 17).
  • Recovery of items previously deducted
  • Ridesharing money and other benefits
  • Payment of life insurance, endowment, or annuity benefits received
  • Lloyds plan of operations income
  • Income earned by certain trust accounts established under IL Pre-need Cemetery Sales Act
  • Education loan repayments under Family Practice Residency Act
  • Reparations received as victims of persecution by NAZI Germany
  • Interest on Non-U.S. Government Bonds

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