Illinois Department of Revenue
                                                                     Use for tax year ending on or after 
                                                                     December 31, 2022, and before 
  IL-1041 Instructions                                               December 31, 2023.                        2022

                What’s New?                                          Table of Contents

•  Illinois Net Loss deductions are to be reported on Schedule    What’s New? ........................................................ 1
  NLD, Illinois Net Loss Deduction. Attach Schedule NLD to your 
  Form IL-1041. 
                                                                  General Information ............................................ 1
•  Estates without distributions can now identify themselves by 
  checking the appropriate checkbox on Line D of Form IL-1041. 
                                                                  Specific Instructions ........................................... 8
•  IL-4562 has been updated to include 80 percent bonus 
  depreciation.
                                                                  Illinois Schedule D Instructions ....................... 17
•  Schedule 4255 has new recapture of credit lines. 
•  Schedule D, Section B has been reformatted from horizontal to 
                                                                  Appendix A - Extension Tax Payment 
  vertical orientation. 
                                                                  Worksheet .......................................................... 20
•  Income Tax Credits -- Information about all the credits can be 
  found in Schedule 1299-I.
  •  The following credits are new:                               Appendix B - Tax Prepayment 
  •  Agritourism Liability Insurance (Credit Code 5440) –         Worksheets ........................................................ 21
  effective on or after January 1, 2022
  •  Recovery and Mental Health (Credit Code 0180) –
  effective on or after January 1, 2023
  •  The following credits have updated expiration dates:
  •  Economic Development for a Growing Economy (EDGE) 
  (Credit Code 5300) – ending on or before June 30, 2027
  •  Film Production Services (Credit Code 5000) – ending on 
  or before December 31, 2032
  •  Hospital (Credit Code 5620) – ending on or before 
  December 31, 2027
  •  Invest in Kids (Credit Code 5660)   – ending on or before 
  December 31, 2023

                                       General Information

Who must file Form IL-1041?                                           “Grantor” trusts are not required to file Form IL-1041. 
You must file Form IL-1041 if you are a fiduciary of a trust or   Estates do not pay replacement tax.
an estate, and the trust or the estate                            If the trust or estate is a charitable organization exempt from 
• has net income or loss as defined under the Illinois            federal income tax by reason of Internal Revenue Code 
  Income Tax Act (IITA), regardless of any deduction for          (IRC) Section 501(a), it is not required to file Form IL-1041. 
  distributions to beneficiaries; or                              However, unrelated business taxable income, as determined 
                                                                  under IRC Section 512, is subject to tax (without any 
• is a resident of Illinois and files, or is required to file, a 
                                                                  deduction for the Illinois income tax) and must be reported 
  federal income tax return (regardless of net income or 
                                                                  on Form IL-990-T, Exempt Organization Income and 
  loss). (See “When is nonbusiness income allocable to 
                                                                  Replacement Tax Return, instead of Form IL-1041. For more 
  Illinois” to help you complete your Form IL-1041); or
                                                                  information, see Form IL-990-T Instructions.
• is a nonresident of Illinois but received income from 
  Illinois sources which was not reported as pass-through         What forms must I use?
  withholding on Form IL-1120-ST, Small Business                  In general, you must obtain and use forms prescribed 
  Corporation Replacement Tax Return; Form IL-1065,               by the Illinois Department of Revenue (IDOR). Separate 
  Partnership Replacement Tax Return; or Form IL-1041,            statements not on forms provided or approved by IDOR 
  Fiduciary Income and Replacement Tax Return. You must           will not be accepted and you will be asked for appropriate 
  also file Illinois Schedule NR (Form IL-1041), Nonresident      documentation. Failure to comply with this requirement 
  Computation of Fiduciary Income, to determine the               may result in failure to file penalties, a delay in the 
  income that is taxed by Illinois during the tax year. For       processing of your return, or a delay in the generation of 
  more information, see Illinois Schedule NR (Form IL-1041)       any overpayment. Additionally, failure to submit appropriate 
  with revision date 12/22.                                       documentation when requested may result in a referral to our 
                                                                  Audit Bureau for compliance action.

IL-1041 Instructions (R-02/23)        Printed by the authority of the State of Illinois - web only - one copy. Page 1 of 23

Trusts and Estates must complete Form IL-1041. Do                When should I pay?
not send a computer printout with line numbers and dollar 
                                                                 Payment of tax — You must pay your Illinois Income and 
amounts attached to a blank copy of the return. Computer 
                                                                 Replacement Tax and pass-through withholding reported on 
generated printouts are not acceptable, even if they are in the 
                                                                 behalf of your beneficiaries in full on or before the original 
same format as IDOR’s forms. Computer generated forms 
                                                                 due date of the return. Failure to pay the tax due on or before 
from an IDOR-approved software developer are acceptable.
                                                                 the original due date of the return may result in penalty and 
        Form IL-1041 (R12/22) is for tax year ending             interest. This payment date applies even though an automatic 
on or after December 31, 2022, and ending before                 extension for filing the return has been granted. All payments 
December 31, 2023. For tax year ending on or after               must be made using Form IL-1041-V, Payment Voucher for 
December 31, 2021 and before December 31, 2022, use the          Fiduciary Income and Replacement Tax.
2021 form. Using the wrong form will delay the processing of 
                                                                 Estimated tax payments — For state purposes, trusts 
your return.
                                                                 and estates are not required to make estimated payments, 
How do I register my business?                                   although they may be required to make federal estimated 
If you are required to file Form IL-1041, you should register    payments. 
with IDOR. You may register                                      Extension Payments - If you expect tax to be due, you must 
•  online with MyTax Illinois, our free online account           pay any tentative tax due by the original due date of the return 
   management program for taxpayers;                             using Form IL-1041-V. See Appendix A for more information. 
•  by completing Form REG-1, Illinois Business Registration      Voluntary Prepayments - You may make voluntary 
   Application, and mailing it to the address on the form; or    prepayments of your own tax liability as well as make 
                                                                 pass-through withholding prepayments on behalf of your 
•  by visiting a regional office.                                beneficiaries using Form IL-1041-V. See Appendix B for more 
Visit our website at tax.illinois.gov for more information.      information. 
Registering with IDOR prior to filing your return ensures        We encourage you to make your payments electronically 
that your tax returns are accurately processed.                  using MyTax Illinois or Modernized E-File (MeF) systems, 
Your identification numbers as an Illinois business taxpayer     or you may use Form EFT-1, Authorization Agreement for 
are your federal employer identification number (FEIN) and       Certain Electronic Payments, to set up an ACH credit or 
your Illinois account number.                                    phone debit transaction. These options can be found on 
When should I file?                                              our website at tax.illinois.gov. If you make your payments 
                                                                 using MyTax Illinois, MeF, or EFT, do not mail us your 
Your Illinois filing due date is the same as your federal filing Form IL-1041-V. You must use one of our electronic payment 
due date. In general, Form IL-1041 is due on or before the       options if the IDOR has notified you that you are required to 
15th day of the 4th month following the close of the tax year.   make payments electronically.
Automatic six-month extension — We grant you an                  We will apply each payment to the earliest due date until 
automatic six-month extension of time to file your fiduciary     that liability is paid, unless you provide specific instructions 
tax return. The automatic extension of time to file is granted   to apply it to another period. You may also be assessed a 
whether or not you request it. You are not required to file a    bad check penalty if your remittance is not honored by your 
form in order to obtain this automatic extension. If you expect  financial institution.
tax to be due, you must pay any tentative tax due, by the 
original due date of the return, in order to avoid interest and  Who should sign the return?
penalty on tax not paid by that date. To pay any tax due by      Your Form IL-1041 must be signed by the fiduciary of the 
the original due date of your return:                            trust or estate. If there are two or more joint fiduciaries, the 
•   visit tax.illinois.gov, for information about ACH credit,    signature of one will comply with the requirements of the 
•  pay using mytax.illinois.gov, or                              IITA. The signature verifies by written declaration (and under 
                                                                 penalties of perjury) that the signing fiduciary has personally 
•  mail Form IL-1041-V, Payment Voucher for Fiduciary            examined the return and the return is true, correct, and 
   Income and Replacement Tax, using the address on the          complete. The fact that a fiduciary’s name is signed to a return 
   form.                                                         is prima facie evidence that the fiduciary is authorized to sign 
If an unpaid liability is disclosed when you file your return,   the return on behalf of the trust or estate.
then you may owe penalty and interest charges in addition to     Any person paid to prepare the return (other than a fiduciary 
the tax. See the “What are the penalties and interest?” section  of the trust or estate, or a regular, full-time employee of the 
below. An extension of time to file your Form IL-1041 is         taxpayer, such as a clerk, secretary, or bookkeeper) must 
not an extension of time for payment of Illinois tax.            provide a signature, date the return, enter the preparer tax 
Additional extensions beyond the automatic extension             identification number (PTIN) issued to them by the Internal 
period — We will grant an extension of more than six months      Revenue Service, and provide their firm’s name, FEIN, 
only if an extension is granted by the Internal Revenue          address, and phone number. 
Service (IRS) beyond the date of the Illinois automatic                 If your return is not signed, any overpayment of tax is 
extension. Your additional Illinois extension will be for the    considered forfeited if, after notice and demand for signature, 
length of time approved by the IRS. You must attach a copy of    you fail to provide a signature within three years from the date 
the approved federal extension to your Form IL-1041.             your return was filed.

Page 2 of 23                                                                                                 IL-1041 Instructions (R-02/23)

What are the penalties and interest?                                ILLINOIS DEPARTMENT OF REVENUE
                                                                    PO BOX 19044
Penalties  — You will owe                                           SPRINGFIELD IL 62794-9044
•  a late-filing penalty if you do not file a processable return         The procedure described above does not apply to 
   by the extended due date;                                      11 U.S.C. Section 505 Determination of Tax Liability requests. 
•  a late-payment penalty if you do not pay the tax you owe 
   by the original due date of the return;                        What if I need to correct or change my return?
•  a bad check penalty if your remittance is not honored by       Do not file another Form IL-1041 with “amended” figures 
   your financial institution;                                    to change your originally filed Form IL-1041. If you need 
•  a cost of collection fee if you do not pay the amount you      to correct or change your return after it has been filed, you 
   owe within 30 days of the date printed on your bill.           must file Form IL-1041-X, Amended Fiduciary Income and 
                                                                  Replacement Tax Return. Returns filed before the extended 
Interest —Interest is calculated on tax from the day after the 
                                                                  due date of the return are treated as your original return for 
original due date of your return through the date you pay the 
                                                                  all purposes. For more information, see Form IL-1041-X 
tax. 
                                                                  Instructions.
We will bill you for penalties and interest. For more information 
                                                                  You should file Form IL-1041-X only after you have filed 
about penalties and interest, see Publication 103, Penalties 
                                                                  a processable Illinois Income Tax return. You must file a 
and Interest for Illinois Taxes.
                                                                  separate Form IL-1041-X for each tax year you wish to 
What if I am discontinuing my business?                           change. 
Terminated — If you are the fiduciary of a trust or estate that   State changes only — File Form IL-1041-X promptly if you 
has terminated during any tax year, you are still required to     discover an error on your Illinois return that does not relate to 
file the tax return. Also, we will pursue the assessment and      an error on your federal return but rather was caused by
collection of taxes if                                            • a mistake in transferring information from your federal 
•  the trust or estate was liable for income and replacement        return to your Illinois return;
   tax for that or any previous tax period; or,                   • failing to report or misreporting to Illinois an item that has 
•  the beneficiaries had income allocable to Illinois and were      no effect on your federal return; or
   liable for income and replacement tax for that or any          • a mistake in another state’s tax return that affects the 
   previous tax period, due to a distribution from the trust or     computation of your Illinois tax liability.
   estate. 
                                                                  If you are claiming an overpayment, Form IL-1041-X must be 
Sales or transfers — If you are a fiduciary that, outside the     filed within three years after the extended due date or the date 
usual course of business, sells or transfers the major part of    the return was filed, or within one year after the tax giving rise 
any one or more of                                                to the overpayment was paid, whichever is latest.
•  the stock of goods which you are in the business of            Federal changes only — File Form IL-1041-X if you have 
   selling,                                                       filed an amended federal return or if you have been notified 
•  the furniture or fixtures of your business,                    by the IRS that they have made changes to your return. This 
•  the machinery and equipment of your business, or               includes any change in your federal income tax liability, any 
•  the real property of your business,                            tax credit, or the computation of your federal taxable income 
you or the purchaser must complete and send us Form               as reported for federal income tax purposes, if the change 
CBS-1, Notice of Sale, Purchase, or Transfer of Business          affects any item entering into the computation of net income, 
Assets, no later than 10 business days prior to the date the      net loss, or any credit for any year under the IITA. You must 
sale takes place. Send this form, along with copies of the        file Form IL-1041-X no later than 120 days after the federal 
sales contract and financing agreement, to:                       changes have been agreed to or finally determined to avoid a 
                                                                  late-payment penalty.
   ILLINOIS DEPARTMENT OF REVENUE
   BULK SALES UNIT                                                If your federal change decreases the tax due to Illinois and 
   PO BOX 19035                                                   you are entitled to a refund or credit carryforward, you must 
   SPRINGFIELD IL  62794-9035                                     file Form IL-1041-X within two years plus 120 days of federal 
or                                                                finalization.
   REV.BulkSales@illinois.gov
                                                                  Attach a copy of federal finalization or proof of acceptance 
Request for prompt determination — You may make a                 from the IRS along with a copy of your amended federal form, 
request for prompt determination of liability, in accordance      if applicable, to your Form IL-1041-X. Examples of federal 
with IITA 35 ILCS 5/905(i), if you are an estate that has         finalization include a copy of one or more of the following 
terminated. A completed tax return must be on file with us        items:
before you can submit a request for prompt determination. Do 
                                                                  • your federal refund check,
not submit your return and request at the same time. Mail your 
initial return to the address indicated on the form. You should   • your audit report from the IRS, or
allow 12 weeks for processing. If your request is properly        • your federal transcript verifying your federal taxable 
made, the expiration of the statute of limitations (absent          income.
fraud) will not extend beyond 18 months from the date of 
your request. Mail your request and a copy of your previously 
submitted return to:
IL-1041 Instructions (R-02/23)                                                                                     Page 3 of 23

What records must I keep?                                         appropriate box on the original or amended loss-year return, 
                                                                  whichever showed the loss first. Once the election was made 
You must maintain books and records to substantiate any 
                                                                  to forgo the Illinois carryback provision, the election was 
information reported on your Form IL-1041. Your books and 
                                                                  irrevocable. 
records must be available for inspection by our authorized 
agents and employees.                                             Illinois net losses in tax years ending before 
                                                                  December 31, 1999, are allowed as a carryback or 
Do IDOR and the IRS exchange income tax                           carryforward deduction only in the manner allowed under 
information?                                                      IRC Section 172, including, for example, the 10-year 
IDOR and the IRS exchange income tax information for the          carryback allowed to banks for bad debt losses.
purpose of verifying the accuracy of information reported         The following are the carryback and carryforward years 
on federal and Illinois tax returns. All amounts you report on    generally allowed for Illinois net losses in tax years ending 
Form IL-1041 are subject to verification and audit.               before December 31, 1999. Illinois net losses in tax years 
Should I round?                                                   beginning
You must round the dollar amounts on Form IL-1041 and             •  after August 5, 1997, and ending before 
accompanying schedules to whole-dollar amounts. To do this,          December 31, 1999, must be carried back two years, then 
you should drop any amount less than 50 cents and increase           forward 20 years.
any amount of 50 cents or more to the next higher dollar.         •  on or before August 5, 1997, must be carried back three 
                                                                     years, then forward 15 years.
What if I have an Illinois net loss deduction (NLD)?
                                                                          For tax years ending on or after December 31, 1996, 
An Illinois net loss deduction (NLD) can be used to reduce        and before December 31, 2003, you may have made the 
the base income allocable to Illinois only if the loss year       election to forgo any of the previously mentioned Illinois 
return has been filed and to the extent the loss was not used     NLD carryback periods by checking the appropriate box on 
to offset income from any other tax year. Use Schedule NLD,       your loss year return. This election must have been made 
Illinois Net Loss Deduction, to determine any NLD.                by the extended due date of your return and once made was 
To determine your “Illinois net loss” start with federal taxable  irrevocable for that tax year.
income and apply all addition and subtraction modifications       In addition, the special carryover periods in IRC Section 172, 
and all allocation and apportionment provisions.                  as in effect for a particular tax year, would apply to losses 
In order to have any available NLD applied to your return, you    incurred in that year. For example, a “specified liability loss” 
must claim the deduction on Step 4, Line 30. See the specific     incurred in 1998 may be carried back 10 years under IRC 
instructions for Step 4, Line 30.                                 Section 172(b)(1)(c).
If you have an Illinois net loss for this tax year, you must file Also, no limitations under IRC Section 382 or the separate 
Form IL-1041 reporting the loss in order to carry the loss        return limitation year provisions of the federal consolidated 
forward to another year.                                          return regulations apply to any NLD carryover.
If corrections have been made to the loss amount                  What if I have a discharge of indebtedness?
(e.g., federal audit or amended return), you must report the 
corrected amount when you file.                                   If you had discharge of indebtedness income for a taxable 
                                                                  year ending on or after December 31, 2008, and all or a 
          Ensure you have filed returns for all periods in which  portion of this income was excluded from your federal gross 
you were required to file an Illinois return. Unfiled returns may income due to bankruptcy or insolvency, then you may be 
result in disallowed losses, processing delays, and further       required to reduce either or both (i) the net operating loss 
correspondence from IDOR.                                         incurred in the taxable year of the discharge, and (ii) any net 
If you need more information about Illinois NLDs see the          operating loss carryovers to the taxable year of the discharge. 
Schedule NLD Instructions or 86 Ill. Adm. Code Sections           If you were required to reduce a federal net operating loss 
100.2050 and 100.2300 through 100.2330.                           in the year of the discharge, you may have been required to 
What are the limitations of the Illinois NLD?                     reduce any Illinois net loss you incurred for the same year. 
                                                                  This reduction is made on the Illinois income tax return you 
For tax years ending on or after December 31, 2021, Illinois      filed for the loss year using the Loss Reduction Worksheet 
net losses cannot be carried back and can only be carried         on Page 11 of these instructions. If you are a corporation 
forward for 20 tax years.                                         (other than an S corporation) or trust and you were required 
For tax years ending on or after December 31, 2003, and           to reduce or eliminate a federal net operating loss carryover 
before December 31, 2021, Illinois net losses can no longer       because you had discharge of indebtedness income, you may 
be carried back, and can only be carried forward for 12 years.    be required to reduce or eliminate your Illinois net operating 
However, the carryover period of any net loss that has not        loss carryovers. This reduction is calculated on the Discharge 
expired as of November 16, 2021, shall be extended from           of Indebtedness Worksheet on Schedule NLD. Attach a 
12 years to 20 years.                                             copy of your U.S. Form 982, Reduction of Tax Attributes 
For tax years ending on or after December 31, 1999,               Due to Discharge of Indebtedness, to your return. For more 
and before December 31, 2003, all Illinois net losses             information, see 86 Ill. Adm. Code Section 100.2310(c).
must be carried back two years (unless an election to only 
carryforward is made) then forward 20 years. The election 
to carry a loss forward only was made by checking the 
Page 4 of 23                                                                                              IL-1041 Instructions (R-02/23)

What is the standard exemption?                                   • an irrevocable trust, whose grantor was domiciled in 
                                                                    Illinois at the time the trust became irrevocable. For 
The standard exemption is $1,000. If you have a change in 
                                                                    purposes of this definition, a trust is irrevocable to the 
your tax year end, and the result is a tax period of less than 
                                                                    extent that the grantor is not treated as the owner of the 
12 months, the standard exemption is prorated based on 
                                                                    trust under IRC Sections 671 through 678. For a more 
the number of days in the short tax year. However, if this is 
                                                                    detailed explanation of “domicile” and “resident,” see 
your first or final return, you are allowed to use the full-year 
                                                                    Form IL-1040, Illinois Individual Income Tax Return, 
standard exemption even if it is a short tax year. If you are a 
                                                                    General Information.
nonresident, you must use Schedule NR (1041) to compute 
your exemption allowance. If you need further information,        Nonresident means a person who is not a resident of Illinois, 
see the Illinois Income Tax Act, Section 401(b).                  as defined previously.
   For tax years beginning on or after January 1, 2017,              In the following definitions, all references to “income” 
the standard exemption may not be claimed if the taxpayer’s       include losses.
adjusted gross income for the taxable year is $250,000 or         Illinois base income is your federal taxable income, plus 
more. See specific instructions for more information.             any additions on Lines 2 through 10, less any subtractions on 
                                                                  Line 25. See specific instructions for Steps 2 and 3. 
What attachments do I need?
                                                                  Business income means all income (other than 
When filing your return there are certain types of income items 
                                                                  compensation) that may be apportioned by formula among 
and subtraction modifications that require the attachment 
                                                                  the states in which you are doing business without violating 
of Illinois or federal forms and schedules. Breakdowns, 
                                                                  the Constitution of the United States. All income of a trust or 
statements, and other documentation may also be required. 
                                                                  estate is business income unless it is clearly attributable to 
Instructions for these attachments appear throughout the 
                                                                  only one state and is earned or received through activities 
specific instructions for completing your return.
                                                                  totally unrelated to any business you are conducting in more 
   All Illinois forms and schedules include an                    than one state. Business income is net of all deductions 
“IL Attachment No.” in the upper right corner of the form.        attributable to that income.
Required attachments should be ordered numerically behind 
                                                                  Nonbusiness income means all income other than 
the tax return, as indicated by the IL Attachment No. Failure to 
                                                                  business income or compensation. For more information 
attach forms and schedules in the proper order may result in 
                                                                  about the different types of nonbusiness income, see Illinois 
processing delays. 
                                                                  Schedule NB Instructions.
Required copies of documentation from your federal return 
                                                                  A pass-through entity is any entity treated as a partnership, 
or other sources should be attached behind the completed 
                                                                  subchapter S corporation, or trust for federal income tax 
Illinois return.
                                                                  purposes.
You must attach a copy of your U.S. Form 1041, Pages 1 and 
                                                                  Pass-through entity income is the income that any 
2, to your Illinois return if you are required to file federally. 
                                                                  partnership, subchapter S corporation, or trust passes through 
Schedule D, Beneficiary Information, must be completed and        to its partners, shareholders, or beneficiaries.
attached to all Form IL-1041 filings. 
                                                                  PTE tax is an amount equal to 4.95 percent of the taxpayer’s 
If you are required to attach any Schedule(s) K-1-T,              calculated net income for the tax year paid by a partnership 
Beneficiary’s Share of Income and Deductions, only attach         (other than a publicly traded partnership under Section 7704 
Schedule(s) K-1-T you received which lists your name and          of the Internal Revenue Code) or subchapter S corporation 
FEIN in Step 2 of Schedule K-1-T. Do not attach copies of         who elects to pay the tax for taxable years ending on or after 
Schedule(s) K-1-T you issued and which lists your name and        December 31, 2021, and beginning prior to January 1, 2026. 
FEIN in Step 1 of Schedule K-1-T.
                                                                  PTE tax credit is the distributive share of the credit allowed 
   When filing your Form IL-1041 include only forms               as a result of a partnership or S corporation having elected to 
and schedules required to support your return. Send               pay the PTE tax. 
correspondence separately to: 
                                                                  PTE tax credit 
  ILLINOIS DEPARTMENT OF REVENUE
  TAXPAYER CORRESPONDENCE                                         • distributed to your beneficiaries is reported on 
  PO BOX 19044                                                      Schedule K-1-T, Line 50.
  SPRINGFIELD IL  62794-9044                                      • retained by the fiduciary is reported on Form IL-1041, 
Definitions to help you complete your Form IL-1041.                 Line 55d.
Resident means                                                    Pass-through withholding is the amount required to be 
                                                                  reported and paid by the pass-through entity on behalf of its 
• an individual who is present in Illinois for other than a 
                                                                  nonresident partners, shareholders, and beneficiaries 
  temporary or transitory purpose;
                                                                  • who have not submitted Form IL-1000-E, Certificate 
• an individual who is absent from Illinois for a temporary or 
                                                                    of Exemption for Pass-through Withholding, to the 
  transitory purpose but who is domiciled in Illinois;
                                                                    pass-through entity, and
• the estate of a decedent who at his or her death was 
                                                                  • who receive business and nonbusiness income from the 
  domiciled in Illinois;
                                                                    pass-through entity.
• a trust created by a will of a decedent who at his or her 
  death was domiciled in Illinois; or
IL-1041 Instructions (R-02/23)                                                                                          Page 5 of 23

Pass-through withholding is                                       When is nonbusiness income allocable to Illinois? 
• reported to your beneficiaries on the Schedule K-1-T you        If the trust or estate is a resident, all nonbusiness income is 
  send to them,                                                   allocable to Illinois.
• reported to IDOR on your Form IL-1041 and Illinois              If the trust or estate is a nonresident, items of income and 
  Schedule D, and                                                 deduction which constitute nonbusiness income are allocable 
• paid with your return or voluntarily prepaid with               to Illinois according to the following rules:
  Form IL-1041-V.                                                 • Interest and dividend income received by a nonresident 
   If any of your beneficiaries are pass-through entities           trust or estate is not allocable to Illinois. 
themselves, they are required to report and pay pass-through      • Net rents and royalties 
withholding on behalf of their own nonresident partners, 
                                                                    Real property — Rents and royalties from real property 
shareholders, or beneficiaries on the income you passed 
                                                                    are allocable to Illinois if the property is located in Illinois.
through. Your beneficiaries may claim a credit on their Illinois 
Income Tax return for pass-through withholding you reported         Tangible personal property — Rents and royalties from 
and paid on their behalf.                                           tangible personal property are allocable to Illinois to the 
                                                                    extent the property is used in Illinois. The extent of use 
Trusts can both make and receive pass-through withholding. 
                                                                    of tangible personal property in a state is determined 
Estates can receive pass-through withholding.
                                                                    by multiplying the rents and royalties derived from the 
• Pass-through withholding you owe on behalf of your                property by a fraction, in which the numerator is the 
  beneficiaries is a payment of pass-through withholding            number of days the property is located in the state during 
  you make on behalf of your nonresident beneficiaries              the rental and royalty period in the tax year and the 
  who have not submitted Form IL-1000-E to you. This                denominator is the total number of days during all rental or 
  amount will be reported on Form IL-1041, Line 53.                 royalty periods in the tax year.
• Pass-through withholding reported to you is a                   • Patent and copyright royalties are allocable to Illinois to 
  credit for pass-through withholding you receive on                the extent the patent or copyright is used in Illinois. 
  Schedules K-1-P and K-1-T as a partner, shareholder, or 
                                                                    A patent is used in Illinois to the extent that it is employed 
  beneficiary of a pass-through entity. This amount will be 
                                                                    in production, fabrication, manufacturing, or other 
  reported on Form IL-1041, Line 55c.
                                                                    processing in Illinois or to the extent that a patented 
If you are a nonresident and the pass-through withholding           product is produced in Illinois.
reported to you satisfies your Illinois Income Tax liability, you 
                                                                    A copyright is used in Illinois to the extent that printing or 
are not required to file an Illinois Income Tax return. If you 
                                                                    other publication originates in Illinois.
had Illinois income from other sources and the pass-through 
withholding made on your behalf does not cover your liability,    • Gains and losses from sales or exchanges of real or 
you must file a return to report the tax on all of your Illinois    tangible property are in Illinois if the property is located in 
income and claim a credit for pass-through withholding made         Illinois at the time of the sale or exchange. Gains or losses 
on your behalf.                                                     from the sale or exchange of intangible personal property 
                                                                    are not allocable to Illinois. 
All residents and pass-through entities must file their own 
annual Illinois Income Tax return to claim a credit for any       • Income from subchapter S corporations, partnerships 
pass-through withholding reported to them.                          and other fiduciaries paid to the trust or estate is 
                                                                    allocable to Illinois as if the trust or estate received it 
When is business income allocable to Illinois?                      directly. See the Illinois Schedule(s) K-1-P furnished by 
If the trust or estate is a resident, all income received,          the subchapter S corporation or partnership or the Illinois 
regardless of source, is allocable to Illinois.                     Schedule(s) K-1-T furnished by the other fiduciary to 
If the trust or estate is a nonresident and business income is      determine what income is allocable to Illinois.
derived                                                           • Illinois state lottery winnings, and proceeds from 
• wholly inside Illinois, the entire amount of business             sales or other transfers of rights to lottery winnings 
  income is allocable to Illinois;                                  received by a nonresident fiduciary are allocable to Illinois. 
• wholly outside of Illinois, none of the business income is      • Gross receipts of winnings from sports wagering 
  allocable to Illinois;                                            conducted in accordance with the Sports Wagering Act for 
                                                                    taxable years ending on or after December 31, 2021, are 
• inside and outside of Illinois, complete Illinois 
                                                                    allocable to Illinois.
  Schedule NR (Form IL-1041), Step 6. See the instructions 
  for Illinois Schedule NR (Form IL-1041), Step 6.                • Other unspecified items of income or deduction of a 
                                                                    nonresident taxpayer are not allocable to Illinois.
• from subchapter S corporations, partnerships, and other 
  fiduciaries, the business income may be allocable to 
  Illinois. See the Illinois Schedule(s) K-1-P, furnished by 
  the subchapter S corporation or partnership or the Illinois 
  Schedule(s) K-1-T furnished by the other fiduciary to 
  determine what income is allocable to Illinois.

Page 6 of 23                                                                                                   IL-1041 Instructions (R-02/23)

What does taxable in other states mean?                           You must use Illinois Schedule D to supply us with a 
                                                                  listing of your beneficiaries, certain items of income, and 
Taxable in other states means you are subject to and actually 
                                                                  pass-through withholding you made on their behalf. You must 
pay “tax” in another state. “Tax” means net income tax, 
                                                                  complete all lines of Illinois Schedule D, as applicable, and file 
franchise tax measured by net income, or franchise tax for 
                                                                  it with your Form IL-1041.
the privilege of doing business. You are considered taxable in 
another state if that state has jurisdiction to subject you to a  What if the trust makes an accumulation or capital 
net income tax, even though that state does not impose such       gain distribution?
a tax. This definition is for purposes of allocating nonbusiness  If the trust makes an accumulation distribution or a capital 
income and apportioning business income inside or outside         gain distribution (both as defined in IRC Section 665), 
Illinois.                                                         the portion of the distribution included in the income of a 
What is the fiduciary’s share or beneficiary’s share              nonresident or part-year resident beneficiary (under IRC 
of income?                                                        Sections 668 and 669) is taxable to the extent that the trust 
                                                                  income was allocable to Illinois before distribution.
The fiduciary’s share of an item of income or deduction is 
that amount required to be taken into account in computing        What if I participated in a reportable transaction?
fiduciary taxable income for federal income tax purposes          If you participated in a reportable transaction, including a 
for the tax year and is not paid, credited, or required to        “listed transaction,” during this tax year and were required to 
be distributed to the beneficiaries of the trust or estate for    disclose that transaction to the IRS, you are also required to 
that year. The fiduciary’s share of each of the addition and      disclose that information to Illinois.
subtraction items required under the IITA is that part of each 
                                                                  You must send us two copies of the form used to disclose the 
item that relates and is attributable to the fiduciary’s share of 
                                                                  transaction to the IRS.
the items of income and deduction.
                                                                  • Mail the first copy of the federal disclosure statement to:
The beneficiary’s share of each of the items is the amount 
that was properly paid, credited, or required to be distributed     ILLINOIS DEPARTMENT OF REVENUE
                                                                    PO BOX 19029
to the beneficiary for the tax year. The items of income and        SPRINGFIELD IL  62794-9029
deduction and the additions and subtractions that are deemed 
                                                                  • Attach the second copy to your Illinois Income Tax return 
to have been paid, credited, or distributed must be taken into 
                                                                    for the tax year that the IRS disclosure was required. Mail 
account by the beneficiaries in proportion to their respective 
                                                                    the second copy and your Illinois Income Tax return to the 
shares of the distributable net income.
                                                                    address shown on your return. Do not mail the second 
When must I use Illinois Schedules K-1-T, K-1-T(3),                 copy and your Illinois Income Tax return to the address 
and D?                                                              listed above.
You must use Illinois Schedule K-1-T to supply each               What if I need additional assistance or forms?
beneficiary with that individual’s or entity’s share of the 
                                                                  •    Visit our website at tax.illinois.gov for assistance, forms 
amounts reported on your federal and Illinois tax returns. 
                                                                    or schedules.
For Illinois Income Tax purposes, you must give a 
                                                                  • Write us at: 
completed Illinois Schedule K-1-T and a copy of the Illinois 
Schedule K-1-T(2), Beneficiary’s Instructions, to each              ILLINOIS DEPARTMENT OF REVENUE
                                                                    PO BOX 19001
beneficiary. Do not file copies of Illinois Schedule K-1-T          SPRINGFIELD IL  62794-9001
that you issued to your beneficiaries with your 
                                                                  • Call 1 800 732-8866 or 217 782-3336 (TDD, 
Form IL-1041. However, you must keep a copy of each 
                                                                    telecommunications device for the deaf, at 
Illinois Schedule K-1-T with your tax records. See Illinois 
                                                                    1 800 544-5304). 
Schedule K-1-T(1), Instructions for Trusts and Estates 
Completing Schedule K-1-T and Schedule K-1-T(3), for more         • Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. 
information.                                                        (Springfield office) and 8:30 a.m. to 5:00 p.m. (all other 
                                                                    offices), Monday through Friday. 
Trusts only - You must use Illinois Schedule K-1-T(3), 
Pass-through Withholding Calculation for Nonresident              Where should I file?
Members, to calculate the required tax you must report            • If a payment  isenclosed with your return, mail your 
and pay on behalf of your nonresident beneficiaries who             Form IL-1041 to
receive business or nonbusiness income from you. You must 
complete the schedule if you have business or nonbusiness           ILLINOIS DEPARTMENT OF REVENUE
                                                                    PO BOX 19053
income distributable to Illinois nonresident beneficiaries who      SPRINGFIELD IL  62794-9053
have not provided you with Form IL-1000-E. You are required 
to complete Schedule K-1-T(3) for each such beneficiary and       • If a payment is not enclosed, mail your Form IL-1041 to:
keep a copy of the completed schedule in your files. Do not         ILLINOIS DEPARTMENT OF REVENUE 
submit Schedule K-1-T(3) to IDOR unless we request it               PO BOX 19009
from you. The information entered on this schedule will assist      SPRINGFIELD IL  62794-9009
you in completing Illinois Schedule D. See Schedule K-1-T(1) 
for more information.

IL-1041 Instructions (R-02/23)                                                                                         Page 7 of 23

                                        Specific Instructions

Specific instructions for most of the lines are provided on the    K — If you are claiming a special depreciation addition or 
following pages. If a specific line is not referenced, follow      subtraction modifications on Form IL-1041, check the box and 
the instructions on the form.                                      attach Form IL-4562, Special Depreciation, to your tax return.
Step 1 — Identify your fiduciary                                   L — If you are claiming other addition or subtraction 
A — All taxpayers: Type or print your legal business               modifications on Form IL-1041, check the box and attach 
name. If you have a name change from last year, check the          Schedule M, Other Additions and Subtractions (for 
corresponding box.                                                 businesses), to your tax return.
B — Type or print your mailing address. If your address has        M — If you are claiming related-party expense modifications 
changed since you filed your last return or if this is your first  on your Form IL-1041, check the box and attach 
return, check the box.                                             Schedule 80/20, Related-Party Expenses, to your tax return.
       If you checked the box in Line B because you have           N — Check the box and attach a detailed statement if you 
never filed an Illinois return, you must also check the “first     must adjust your loss or loss carryover due to Discharge of 
return” box in Line E.                                             Indebtedness. For more information, see the instructions for 
                                                                   Line 28, the Loss Reduction Worksheet on Page 11 of these 
C — Indicate if you are a trust or an estate by checking the 
                                                                   instructions, Schedule NLD, and Schedule NLD Instructions.
appropriate box.
                                                                   O — Check this box if you are a 52/53-week filer.  
Note: If you are filing a qualified revocable trust who has 
                                                                   A 52/53-week filer is a fiscal filer with a tax year that varies 
made a U.S. Section 645 election, you must mark the estate 
                                                                   from 52 to 53 weeks because their tax year ends on the same 
box.
                                                                   day of the week instead of the last day of the month. 
D — Indicate if you are an Electing Small Business Trust 
                                                                            You must complete an IDOR-issued or previously 
(ESBT), an individual bankruptcy estate, or a complex trust or 
                                                                   approved Form IL-1041 and corresponding schedules. 
estate without distributions by checking the appropriate box or 
                                                                   Do not send a computer printout or spreadsheets with line 
boxes (you may check more than one).
                                                                   numbers and dollar amounts attached to a blank copy of the 
       You may only indicate you are an                            return. 
•  ESBT if you checked the “Trust” box on Step 1, Line C; or       Step 2 — Figure your income or loss
•  individual bankruptcy estate if you checked the “Estate”        Line 1 — Enter the amount from U.S. Form 1041, Line 23. 
   box on Step 1, Line C.                                          Attach a copy of your federal return.
       For individual bankruptcy estates, Illinois follows 
                                                                            Do not include any capital gains on the lump-sum 
the federal filing procedures. You should complete 
                                                                   distribution from a retirement plan that you reported on 
Form IL-1040, Individual Income Tax Return, and carry 
                                                                   your U.S. Form 4972, instead of on Line 8 of your U.S. 
the tax amount to Step 6 of Form IL-1041 and check the 
                                                                   Form 1041.
Individual Bankruptcy box. On the top of Form IL-1040, 
write “Individual Bankruptcy Estate. Do not detach.”                         Under federal law, Paycheck Protection Program 
Attach Form IL-1040 to the back of Form IL-1041.                   (PPP) loan forgiveness is not considered taxable income and 
                                                                   the business expenses covered by the PPP loan proceeds are 
E — If this is your first or final return, check the 
                                                                   deductible business expenses. Currently, Illinois tax law has 
appropriate box and the box on Line 58 if you have a credit 
                                                                   no addition modification to change this; therefore, the same 
carryforward on your final return.  
                                                                   treatment flows through to the Illinois return and is included as 
F — Indicate your method of accounting by checking the             part of federal taxable income. 
appropriate box. You must use the same accounting method 
                                                                   Line 2 through 10 — Do not enter negative amounts on 
(e.g., cash or accrual) and tax year that you used for federal 
                                                                   Lines 2 through 10. If you are claiming over-accrued taxes, 
income tax purposes.
                                                                   include them on Schedule M (for business), Line 24.
G — Enter your entire federal employer identification number 
                                                                   Line 2 — Enter the amount of net operating loss deduction 
(FEIN). A partial FEIN will delay the processing of your return. 
                                                                   from U.S. Form 1041, Line 15b.
H — If you are required to disclose reportable transactions 
                                                                   Line 3 — If you are an Electing Small Business Trust (ESBT), 
and you have attached U.S. Form 8886, check the box. See 
                                                                   and your net taxable income from subchapter S corporations 
“What if I participated in a reportable transaction?” for more 
                                                                   is positive, enter that figure here. Also, you should include 
information.
                                                                   the amounts applicable from this trust in your addition and 
I — If your residency is not in Illinois, check the box and attach subtraction modifications. Attach a breakdown worksheet 
a completed Illinois Schedule NR (Form IL-1041) to your tax        explaining each amount. If your net taxable income from 
return.                                                            subchapter S corporations is a loss, report it on Line 23.
J — If you earned or can carryforward credits on Illinois          Line 4 — Enter the exemption amount from your 
Schedule 1299-D, Income Tax Credits (for corporations and          U.S. Form 1041, Line 21. If you are a qualified disability trust, 
fiduciaries), check the box and attach Illinois Schedule 1299-D    enter $100 or the amount of your exemption, whichever is 
and any other required support listed on Schedule 1299-D           less.
to your tax return, even if you are unable to use any of the 
credits in this tax year.
Page 8 of 23                                                                                             IL-1041 Instructions (R-02/23)

Lines 5 through 10 - Addition Modifications — Any addition                Include only additions reported to you on the 
modification required in the computation of base income         Schedule(s) K-1-P or K-1-T you received from a pass-through 
should be adjusted by any amount permanently set aside for      entity in which you are an investing partner or shareholder or 
charitable purposes pursuant to IRC Section 642(c).             a beneficiary. Do not attach copies of Schedules K-1-T you 
Enter the addition modifications in Column A if the item is     issued to your beneficiaries. You should keep copies of these 
included in figuring your beneficiaries’ income.                schedules in your records. 
Enter the addition modifications in Column B if the item is     Line 10 — Enter the addition amount calculated on Illinois 
included in figuring your income.                               Schedule M, Step 2, Line 11. Attach a copy of Illinois 
Line 5 — You must add back any amount of Illinois Income        Schedule M to your Form IL-1041. 
and Replacement taxes and surcharge that you deducted on               The sum of the amounts reported in columns A and B 
your U.S. Form 1041 to arrive at your federal taxable income.   of this line should match the total amount reported on Illinois 
You are not required to add back taxes from other states that   Schedule M, Step 2, Line 11.
you included as a federal deduction.                            The following are examples of items that must be added to 
Line 6 — Enter the total of all amounts excluded from federal   taxable income and are included on the Illinois Schedule M.
taxable income that were received or accrued as interest        • Notes, bonds, debentures, or obligations issued by the 
during the tax year.                                              Governments of Guam, American Samoa, Puerto Rico, 
Line 7 — Enter the addition amount calculated on                  the Northern Mariana Islands, or the Virgin Islands. 
Form IL-4562, Step 2, Line 4. For more information, see         • Lloyd’s plan of operations loss if reported on your behalf 
Form IL-4562 and Instructions. Attach Form IL-4562 to your        on Form IL-1065, Partnership Replacement Tax Return, 
Form IL-1041.                                                     and included in your federal taxable income.
 The sum of the amounts reported in columns A and               • Nonresidents only: Business Expense Recapture - 
B of this line should match the total amount reported on          Deductions you claimed this year and in your two most 
Form IL-4562, Step 2, Line 4.                                     recent tax years for expenses connected with income 
Line 8 — Enter the interest or intangible expenses, or            from an asset or activity which were reported as business 
insurance premiums paid to an affiliated company, to the          income in prior years and as nonbusiness income on 
extent these expenses exceed any taxable dividends you            this return. This recapture should be allocated to the 
received from the affiliated company. To compute the amount       fiduciary to the extent the business expenses were 
of this addition, complete Step 2 of Illinois Schedule 80/20,     allocated to the fiduciary in the year they were deducted. 
and enter on Line 8 the total from Illinois Schedule 80/20,       See Illinois Schedule NR (Form IL-1041, and Illinois 
Step 2, Line 9. Attach Illinois Schedule 80/20 to your            Schedule NR (Form IL-1041) Instructions for more 
Form IL-1041.                                                     information.
 The sum of the amounts reported in columns A and B             • Any other state’s income tax deducted from federal 
of this line should match the total amount reported on Illinois   taxable income, if a corresponding credit is claimed on 
Schedule 80/20, Step 2, Line 9.                                   Illinois Schedule CR (Form IL-1041), Credit for Tax Paid 
Some interest and intangible expenses may be exempt               to Other States. Only add back the taxes for which you 
from this add-back provision. See Illinois Schedule 80/20         are claiming a credit.
Instructions for more information including definitions of      • The smaller of any capital loss on U.S. Form 1041, Line 4 
“affiliated company,” “intangible expenses,” and “intangible      that you may carryforward or any negative amount on 
assets.”                                                          U.S. Form 1041, Line 22. 
Line 9 — If you are a beneficiary in another trust or           Step 3 — Figure your base income or loss
estate, a partner in a partnership, or a shareholder in a 
                                                                Lines 13 through 25 - Subtraction Modifications — Do not 
subchapter S corporation, include your distributive share 
                                                                enter negative amounts on Lines 13 through 25. 
of additions received from the trust, estate, partnership, or 
subchapter S corporation on Schedules K-1-P or K-1-T. If        Any subtraction modification required in the computation 
you receive multiple schedules because you are a recipient      of base income should be adjusted by any amount 
from multiple entities, you should enter the combined           permanently set aside for charitable purposes pursuant to 
total of Step 5, Column A, Lines 32 through 37, from all        IRC Section 642(c).
Illinois Schedules K-1-P you receive and Step 5, Column A,      Enter the subtraction modifications in Column A if the item is 
Lines 30 through 35, from all Illinois Schedules K-1-T you      included in figuring your beneficiaries’ income. 
receive. Attach a copy of all Illinois Schedules K-1-P and      Enter the subtraction modifications in Column B if the item is 
K-1-T to your Form IL-1041.                                     included in figuring your income.
 The trust or estate is required to send you                    A double deduction is prohibited by IITA, Section 203(g). You 
an Illinois Schedule K-1-T and Schedule K-1-T(2),               cannot deduct the same item more than once when figuring 
Beneficiary’s Instructions, and the partnership or              your subtractions.
subchapter S corporation is required to send you an Illinois 
Schedule K-1-P and Schedule K-1-P(2), Instructions for 
Partnerships and S Corporations Completing Schedule K-1-P, 
and Schedule K-1-P(3), specifically identifying your share of 
income.
IL-1041 Instructions (R-02/23)                                                                                   Page 9 of 23

Line 13 — Enter the amount from Illinois Schedule F                in Illinois Publication 101, Income Exempt from Tax. This 
(Form IL-1041), Gains from Sales or Exchanges of Property          amount is net of any bond premium amortization deducted 
Acquired Before August 1, 1969, Line 18. Capital gain, or          federally.
Section 1245 or 1250 gain, on property acquired before             Line 16 — Enter any retirement payments to retired partners 
August 1, 1969, may be limited by the value of the property        that were received by the trust or estate and excluded 
on August 1, 1969. See Illinois Schedule F for instructions.       in computing net earnings from self-employment by IRC 
Attach Illinois Schedule F, and a copy of U.S. Schedule D          Section 1402.
(or U.S. Form 8949), U.S. Form 4797, and U.S. Form 6252, 
                                                                       You must attach Illinois Schedule 1299-B, River 
if filed.
                                                                   Edge Redevelopment Zone or Foreign Trade Zone 
Line 14 — Enter the federally taxed portion of any qualified       (or sub-zone) Subtractions, to your Form IL-1041 if you 
distribution received from                                         have an amount on Lines 17 and 18.
• a qualified employee pension, profit sharing, stock              Line 17 — Enter the River Edge Redevelopment Zone 
  bonus, or bond purchase plan, or from a government               Dividend subtraction from Illinois Schedule 1299-B, Step 1, 
  (including military) retirement or disability plan. Report       Line 3. 
  only such distribution that was included in taxable 
                                                                   Line 18 — Enter the High Impact Business Dividend 
  income on U.S. Form 1041, Line 8. Attach a copy of 
                                                                   subtraction from Illinois Schedule 1299-B, Step 1, Line 6. 
  U.S. Form 1041, Page 1, and supporting schedule for 
  Line 8.                                                          Line 19 — Enter the amount of any contribution made to 
                                                                   a job training project established under the “Tax Increment 
• an Individual Retirement Account (IRA), a self-employed 
                                                                   Allocation Redevelopment Act,” as amended. For further 
  retirement plan (SEP), or a 401(k) plan.
                                                                   information, see Illinois Compiled Statutes, Chapter 65, 
• a lump-sum distribution of cash or property from a               paragraph 5/11-74.4-1 et seq.
  qualified plan (e.g., employer securities or retirement 
                                                                   Line 20 — Enter the subtraction allowance from Form IL-4562,
  income, endowment or life insurance contracts). Report 
                                                                   Step 3, Line 13. Attach Form IL-4562 to your Form IL-1041. 
  the total distribution treated as long-term capital gain 
  shown on U.S. Schedule D plus any amount treated as                  The sum of the amounts reported in columns A and B 
  ordinary income and included in U.S. Form 1041, Line 8.          of this line should match the total amount reported on 
  Attach a copy of U.S. Schedule D and U.S. Form 1041,             Form IL-4562, Step 3, Line 13.
  Page 1, and supporting schedule for Line 8.                      Line 21 — Enter the amount from Illinois Schedule 80/20, 
• the redemption of U.S. Retirement Bonds. Attach a copy           Step 4, Line 23. Attach Illinois Schedule 80/20 to your 
  of U.S. Form 1041, Page 1, and supporting schedule               Form IL-1041. 
  for Line 8.                                                          The sum of the amounts reported in columns A and B 
• gain on the sale or exchange of employer securities.             of this line should match the total amount reported on Illinois 
  Complete Form IL-4644, Gains from Sales of Employer’s            Schedule 80/20, Step 4, Line 23.
  Securities Received from a Qualified Employee Benefit            You should use Illinois Schedule 80/20
  Plan, to compute the subtraction. Attach Form IL-4644 to         •  if you added back interest paid to an affiliated company 
  your Form IL-1041.                                                  on Step 2, Line 8, you may subtract any interest received 
   Do not subtract any capital gains on the lump-sum                  from that affiliated company during this tax year, up to the 
distribution from a retirement plan that you reported                 amount of your addition for interest expense paid to that 
on your U.S. Form 4972, rather than on U.S. Form 1041,                company. Also, if you added back intangible expenses 
Line 8. These amounts are excluded from your federal                  from a transaction with an affiliated company on Line 
taxable income on Form IL-1041, Line 1, and cannot be                 8, you may subtract any income you received during 
subtracted.                                                           the tax year from similar transactions with the affiliated 
               You must notify each beneficiary of his or             company, up to the amount of your addition for intangible 
her share of any amount included on Line 14, Column A,                expense for that company. To compute the amount of this 
that is attributable to a capital gain distribution or to a gain      subtraction, complete Illinois Schedule 80/20.
realized on the disposition of employer securities. You must       •  if you are an affiliated company, and you received 
also advise the beneficiary that his or her share of any              interest or intangible income from someone who had to 
such amount is to be reported only if he or she is limiting           add back the interest and intangible expense on their 
capital gain on the disposition of property acquired before           Illinois Schedule 80/20, you may subtract your interest or 
August 1, 1969, on Illinois Schedule F. If the beneficiary is         intangible income from that person.
an individual, he or she will include the amount on Illinois       Line 22 — Enter your distributive share of subtractions 
Schedule F (Form IL-1040), Line 13. If the beneficiary is a        passed through to you on Schedules K-1-P or K-1-T by a 
trust or estate, the fiduciary will include the amount on Illinois partnership, S corporation, trust, or estate that you were either 
Schedule F (Form IL-1041), Line 14.                                a partner, a shareholder, or a beneficiary of. Do not include 
Line 15 — Enter the total interest received or accrued from        any amounts passed through that are reflected on Illinois 
U.S. Treasury bonds, notes, bills, federal agency obligations,     Schedule 1299-B. Attach a copy of all Illinois Schedules 
and savings bonds that is included in your federal taxable         K-1-P and K-1-T you received to your Form IL-1041.
income. You may not subtract anything that is not identified 

Page 10 of 23                                                                                            IL-1041 Instructions (R-02/23)

      The partnership or the subchapter S corporation                 •      reparations or other amounts received as a victim 
is required to send you an Illinois Schedule K-1-P and                       of persecution for racial or religious reasons by Nazi 
Schedule K-1-P(2) and the trust or estate is required to                     Germany or any other Axis regime that are included in 
send you an Illinois Schedule K-1-T and Schedule K-1-T(2),                   your federal taxable income. Also include any reparations 
specifically identifying your share of subtractions.                         or other amounts received as an heir of such victim that 
            Include only subtractions reported to you on the                 are included in your federal taxable income;
Schedule(s) K-1-P or K-1-T you received from a pass-through           •      any other income included on Step 2, Line 11, exempt 
entity in which you are an investing partner or shareholder or               from taxation by Illinois by reason of its Constitution or 
a beneficiary. Do not attach copies of Schedules K-1-T you                   statutes or by the Constitution, treaties, or statutes of the 
issued to your beneficiaries. You should keep copies of these                United States. This amount is net of any bond premium 
schedules in your records.                                                   amortization deducted federally. 
Line 23 — If you are an ESBT, enter the amount of net                 Line 26 — Subtract Line 25 from Line 12. If you are a resident 
taxable income if it is a loss passed through to you by               of Illinois enter this amount on Step 4, Line 27. The base 
subchapter S corporations. Also, you should include the               income of a resident trust or estate is not subject to allocation 
amounts applicable from this trust in your addition and               or apportionment. The entire amount is allocated to Illinois 
subtraction modifications. Attach a breakdown worksheet               under the provisions of the IITA. If you are a nonresident of 
explaining each amount. Net positive income from subchapter           Illinois, complete Illinois Schedule NR (Form IL-1041) before 
S corporations is reported on Line 3.                                 completing Step 4. Attach Illinois Schedule NR (Form IL-1041) 
      Do not enter an amount on Line 23a.                             to your Form IL-1041. For more information, see Illinois 
                                                                      Schedule NR (Form IL-1041) Instructions.
Line 24 — Enter the subtraction amount calculated on Illinois 
Schedule M, Step 3, Line 36. Attach a copy of Illinois                Step 4 — Figure your net income
Schedule M to your Form IL-1041.                                      Line 27 — Follow the instructions on the form. If this amount 
      The sum of the amounts reported in columns A and B              is a loss, you may be allowed to carry it forward to other years 
of this line should match the total amount reported on Illinois       as an Illinois net loss deduction (NLD). 
Schedule M, Step 3, Line 36.                                          Line 28 — If you were required to reduce the net operating 
You may not subtract anything that is not identified below,           loss reported on your U.S. Form 1041 because you excluded 
on Schedule M (for businesses), or in Illinois Publication 101.       any discharge of indebtedness income from this tax year’s 
Subtractions allowed on Illinois Schedule M include:                  gross income, then you may be required to reduce the net 
•   notes, bonds, debentures, or obligations issued by the            loss reported on Line 27. Use the Loss Reduction Worksheet 
    Governments of Guam, American Samoa, Puerto Rico,                 below to figure your loss reduction. 
    the Northern Mariana Islands, or the Virgin Islands, to the               Check the box in Step 1, Line N. 
    extent that you were required to add these amounts to             Attach a copy of your U.S. Form 982, Reduction of Tax 
    your federal taxable income;                                      Attributes Due to Discharge of Indebtedness, and a 
•   Lloyd’s plan of operations income if reported on your             detailed statement, including the amounts and tax year, of 
    behalf on Form IL-1065 and included in your federal               the debt and reason for reduction to your Form IL-1041. For 
    taxable income;                                                   more information, see 86 Ill. Adm. Code Section 100.2310(c). 
•   the amount equal to the deduction used to compute the                     If you also have Illinois net operating loss carryovers 
    federal tax credit for restoration of amounts held under          to the tax year of the debt cancellation, you may also be 
    claim of right under IRC Section 1341;                            required to reduce these carryovers. See Schedule NLD and 
•   the amounts disallowed as federal deductions or interest          Schedule NLD Instructions for more information.
    expenses under IRC Sections 171(a)(2), 265, or 280C; 

                                               Loss Reduction Worksheet 

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

IL-1041 Instructions (R-02/23)                                                                                            Page 11 of 23

Line 29 — If you have a discharge of indebtedness                 If you claimed an Illinois Enterprise Zone or River Edge 
adjustment on Line 28, add Lines 27 (a negative number)           Redevelopment Zone Investment Credit, High Impact 
and 28 (a positive number), and enter the result here. This       Business Investment Credit, or Angel Investment Credit in a 
amount cannot be greater than zero.                               prior year on Illinois Schedule 1299-D, and any of the property 
If you do not have a discharge of indebtedness                    becomes disqualified, you must use Illinois Schedule 4255 to 
adjustment, enter zero on Line 28 and the amount from             compute the amount of recapture. Credit must be recaptured 
Line 27 on Line 29.                                               in the year in which the property became disqualified. For 
                                                                  more information, see Illinois Schedule 4255.
Line 30 — Enter your Illinois net loss deduction carryforward 
as determined from Illinois Schedule NLD, Step 1, Line 7, total   Line 45 — Enter the amount from Illinois Schedule 
box. Attach Illinois Schedule NLD to your Form IL-1041.           CR (Form IL-1041), Step 5, Line 59. Attach Illinois 
                                                                  Schedule CR and all required supporting documents 
Line 31 — The standard exemption is $1,000. If you have 
                                                                  to your Form IL-1041. For more information, see Illinois 
a change in your tax year end, and the result is a tax period 
                                                                  Schedule CR Instructions.
of less than 12 months, the standard exemption is prorated 
based on the number of days in the short tax year. However,       Line 46 — Enter the amount from Illinois Schedule 1299-D, 
if this is your first or final return, you are allowed to use     Step 2, Line 10. The total of all credits is limited to the 
the full-year standard exemption even if it is a short tax        total income tax shown on Line 44. Attach Illinois 
year. If you are a nonresident, you must use Schedule NR          Schedule 1299-D and any other required support listed 
(Form IL-1041) to compute your exemption allowance.               on Schedule 1299-D to your Form IL-1041. For more 
                                                                  information, see Illinois Schedules 1299-D and 1299-I, Income 
This figure cannot be greater than “$1,000.” The standard 
                                                                  Tax Credits Information and Worksheets.
exemption is $0.00 if your adjusted gross income (AGI) is 
$250,000 or more. You should make the determination about         Step 7 — Figure your refund or balance due 
your AGI based on AGI under IRC Section 67(e).                    Line 51 — Compassionate Use of Medical Cannabis Program 
Step 5 — Figure your net replacement tax - For                    Act surcharge. 
trusts only, estates go to Step 6                                                      Definitions
Line 35 — Enter your recapture of investment credits from         Organization registrantmeans a corporation, partnership, 
Illinois Schedule 4255, Step 5, Column D, Line 20.                trust, limited liability company (LLC), or other organization, 
If you claimed any Illinois investment tax credit in a prior year that holds either a medical cannabis cultivation center 
on Form IL-477, and any of the property was disqualified          registration issued by the Illinois Department of Agriculture 
within 48 months of being placed in service, you must use         or a medical cannabis dispensary registration issued by the 
Illinois Schedule 4255 to compute the amount of recapture.        Illinois Department of Financial and Professional Regulation.
Credit must be recaptured in the year the property became         Transactions subject to the surchargemeans sales and 
disqualified.                                                     exchanges of
Line 37 — Enter the amount from Illinois Schedule CR              • capital assets;
(Form IL-1041), Step 5, Line 60. Attach Illinois Schedule         • depreciable business property;
CR and all required supporting documents to your 
                                                                  • real property used in the trade or business; and
Form IL-1041. For more information, see Illinois Schedule CR 
Instructions.                                                     • Section 197 intangibles of an organization registrant.
Line 38 — Enter the amount from Form IL-477, Step 1,                               What is the surcharge?
Line 13. Attach Form IL-477 and any other required                For each taxable year beginning or ending during the 
support listed on Form IL-477 to your Form IL-1041.               Compassionate Use of Medical Cannabis Program, a 
You may claim a replacement tax investment credit of              surcharge is imposed on all taxpayers on income arising from 
.5 percent (.005) of the basis of qualified property placed in    the transactions subject to the surcharge of an organization 
service in Illinois during the tax year.                          registrant under the Compassionate Use of Medical Cannabis 
                                                                  Program Act. 
An additional credit of up to .5 percent (.005) of the basis of 
qualified property is available if your Illinois base employment  The amount of the surcharge is equal to the amount of federal 
increased over the preceding year or if your business is new      income tax liability for the taxable year attributable to the 
to Illinois. Excess credit may be carried forward for five years  transactions subject to the surcharge.
following the excess credit year. For more information, see                 To whom does the surcharge apply?
Form IL-477 Instructions.                                         The surcharge is imposed on any taxpayer who incurs a 
Step 6 — Figure your net income tax - For trusts and              federal income tax liability on the income realized on a 
estates                                                           “transaction subject to the surcharge,” including individuals 
                                                                  and other taxpayers who are not themselves the “organization 
Line 42 — Multiply Line 41 by 4.95% (0.0495). 
                                                                  registrant” that engaged in the transaction.
Line 43 — Enter the total of your recapture of 
                                                                  A line has been included on Schedules K-1-P and K-1-T 
investment credits from Illinois Schedule 4255, Step 5, 
                                                                  to identify the amount of federal income attributable to 
Columns A, B, and C, Lines 20 and Step 6, Line 27. See 
                                                                  transactions subject to the surcharge that was passed through 
Schedule 4255 Instructions for more information regarding the 
                                                                  to you on U.S. Schedule K-1.
recapture of investment credits.

Page 12 of 23                                                                                             IL-1041 Instructions (R-02/23)

     Although a unitary business group filing combined                      • bankruptcy, a receivership, or a debt adjustment 
Illinois returns is treated as a single taxpayer and its members              initiated by or against the initial licensee or the 
are jointly and severally liable for any surcharge imposed on                 substantial owners of the initial licensee;
the group, the group itself is not an organization registrant and           • cancellation, revocation, or termination of any such 
transactions of any member that is not itself an organization                 license by the Illinois Gaming Board or the Illinois 
registrant are not subject to the surcharge.                                  Racing Board;
How do I figure the surcharge?                                              • a determination by the Illinois Gaming Board that 
If the surcharge applies to you, complete the Surcharge                       transfer of the license is in the best interests of Illinois 
Worksheet below.                                                              gaming;
For more information, see 86 Ill. Adm. Code Section 100.2060.               • the death of an owner of the equity interest in a 
Line 52 — Sale of Assets by Gaming Licensee surcharge                         licensee;
                               Definitions                                  • acquisition of a controlling interest in the stock or 
                                                                              substantially all of the assets of a publicly traded 
Gaming licensee is an organization licensee under the Illinois 
                                                                              company;
Horse Racing Act of 1975 and/or an organization gaming 
licensee under the Illinois Gambling Act.                                   • a transfer by a parent company to a wholly owned 
                                                                              subsidiary; or 
Transactions subject to the surchargemeans sales and 
exchanges of                                                                • the transfer or sale to or by one person to another 
                                                                              person where both persons were initial owners of the 
•   capital assets;
                                                                              license when the license was issued; 
•   depreciable business property;
                                                                            • the controlling interest in the organization gaming 
•   real property used in the trade or business; and
                                                                              license, organization license, or racetrack property is 
•   Section 197 intangibles of a gaming licensee.                             transferred in a transaction to lineal descendants in 
                    What is the surcharge?                                    which no gain or loss is recognized or as a result of 
For each taxable year 2019 through 2027, a surcharge                          a transaction in accordance with Section 351 of the 
is imposed on all taxpayers on income arising from the                        Internal Revenue Code in which no gain or loss is 
transactions subject to the surcharge of a gaming licensee.                   recognized; or 
The amount of the surcharge is equal to the amount of federal               • live horse racing was not conducted in 2010 at a 
income tax liability for the taxable year attributable to the                 racetrack located within 3 miles of the Mississippi 
transactions subject to the surcharge.                                        River under a license issued pursuant to the Illinois 
                                                                              Horse Racing Act of 1975.
          To whom does the surcharge apply?
                                                                     The transfer of an organization gaming license, organization 
The surcharge is imposed on any taxpayer who incurs a 
                                                                     license, or racetrack property by a person other than the initial 
federal income tax liability on the income realized on a 
                                                                     licensee to receive the organization gaming license is not 
“transaction subject to the surcharge,” including individuals 
                                                                     subject to a surcharge. 
and other taxpayers who are not themselves the “gaming 
licensee” that engaged in the transaction.                           A line has been included on Schedule K-1-P and 
                                                                     Schedule K-1-T to identify the amount of taxable gains 
The surcharge imposed shall not apply if 
                                                                     attributable to transactions subject to the surcharge that was 
•   the organization gaming license, organization license, or        passed through to you on U.S. Schedule K-1.
    racetrack property is transferred as a result of any of the 
    following:

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

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

IL-1041 Instructions (R-02/23)                                                                                           Page 13 of 23

   Although a unitary business group filing combined             Schedules K-1-P and K-1-T, Step 1, Line 3, must be 
Illinois returns is treated as a single taxpayer and its members completed or you will not receive credit for the pass-through 
are jointly and severally liable for any surcharge imposed       withholding or PTE tax credit reported to you. 
on the group, the group itself is not a gaming licensee and      See “Definitions to help you complete your Form IL-1041” in 
transactions of any member that is not itself a gaming licensee  these instructions for more information.
are not subject to the surcharge.                                            Do not attach copies of Schedules K-1-T you 
              How do I figure the surcharge?                     issued to your beneficiaries. You should keep copies of these 
If the surcharge applies to you, complete the Surcharge          schedules in your records.
Worksheet on Page 13.                                            Line 55e — Enter the amount of Illinois income tax withheld 
Line 53 — Complete all sections of Illinois Schedule D and       on wages and salaries (of a decedent), gambling withholding, 
enter the amount from Illinois Schedule D, Section A, Line 3     and sports wagering winnings withholding that was received 
on this line. This is the amount of pass-through withholding     by you. 
you owe on behalf of your beneficiaries. Attach Illinois         This withholding must be claimed by the fiduciary. 
Schedule D to your Form IL-1041. See “Definitions to help        Also include any Illinois Income Tax withheld as reported 
you complete your Form IL-1041” in these instructions for        on any U.S. 1099 forms you received. Attach Forms W-2, 
more information.                                                W-2G, and any U.S. 1099 forms you received to your 
   Do not include on Line 53 any pass-through                    Form IL-1041.
withholding reported to you on Schedule(s) K-1-P or K-1-T.         For Lines 55c, 55d, and 55e – Grantor trusts 
Pass-through withholding amounts reported to you are             distribute all amounts reported on any Schedule K-1-P or 
included on Step 7, Line 55c.                                    K-1-T they receive to the grantor identified on Schedule K-1-P, 
Line 54 — Add Lines 49 through 53 and enter the total on         Line 9b, or Schedule K-1-T, Line 8b. The distributed amounts 
this line. This is your total net income and replacement taxes,  are reported by the grantor on their own Illinois return. Review 
surcharge, and pass-through withholding you owe.                 the Schedule K-1-P(2) or Schedule K-1-T(2) Instructions.
Line 55a — Enter the sum of any overpayment from your            Line 58 — Enter the amount of overpayment you elect to be 
prior year tax returns that you requested to be applied to this  credited forward. Check the box on this line if this is your final 
year’s tax return. Take into account any correspondence we       return and any remaining carryforward is being transferred 
may have sent you that changed the amount of your credit         to another entity. Attach a detailed statement to your return 
carryforward from the previous year.                             listing the FEIN of the entity receiving the credit carryforward, 
Line 55b — Enter the sum of any                                  the date the credit was transferred, and the reason for the 
                                                                 transfer. 
• voluntary estimated payments or tax prepayments made 
  before the date this return is filed,                            Step 1, Line E, must also be completed if you are 
                                                                 transferring an overpayment to another entity. 
• extension payments made before the original due date of 
  the return, and                                                Your credit carryforward will not be applied if you do not file a 
                                                                 processable return.
• other payments made before the date this return is filed.
                                                                   Your credit carryforward may be reduced by us 
Line 55c — Enter the amount of Illinois pass-through             due to corrections we make to your return, or to satisfy any 
withholding reported to you by partnerships, S corporations,     unpaid tax, penalty, and interest due for this year or any other 
or trusts on Schedule(s) K-1-P or K-1-T. If you received more    year. If we reduce your credit carryforward, it may result in a 
than one Schedule K-1-P or K-1-T, add the amounts you wish       late-payment penalty in a subsequent year.
to claim from all the schedules and enter the total on Line 55c. 
                                                                 To which tax year will my credit apply?
   Do not include on Line 55c any pass-through 
withholding or pass-through entity tax you owe on behalf of      If your 2022 return was filed
your beneficiaries. Pass-through withholding amounts you         ‰  on or before the original filing and payment due date 
owe on behalf of your beneficiaries is included on Step 7,        of your return, your credit will be applied to the next full 
Line 53.                                                          tax year, unless you elect to apply the credit to a different 
Line 55d — Enter the amount of PTE tax credit reported            tax year.
to you on Schedule(s) K-1-P and K-1-T that is retained by                Example 1: You file your 2022 calendar-year 
the fiduciary. If you received more than one Schedule K-1-P              return on March 1, 2023, requesting to receive your 
or K-1-T, add the amounts you wish to claim from all the                 overpayment as a credit. March 1, 2023, falls before 
schedules and enter the total on Line 55d.                               the original filing and payment due date of the 2022 
PTE tax credit passed through to beneficiaries is reported on            tax year (April 18, 2023, for calendar-year filers). 
Schedule K-1-T, Line 50.                                                 Your credit will be applied against your 2023 tax year 
                                                                         liability.
   Do not include any PTE tax credit passed through to 
beneficiaries on Schedule D Section B, Line H.                   ‰  after the original filing and payment due date of your 
                                                                  return, your credit will be applied to the next full tax year 
For both Lines 55c and 55d:                                       in which timely payments can be made as of the date you 
Attach copies of the Schedules K-1-P and K-1-T you received       are filing this return, unless you elect to apply the credit to 
from pass-through entities to your Form IL-1041.                  a different tax year. 

Page 14 of 23                                                                                            IL-1041 Instructions (R-02/23)

  Example 2: You file your 2022 calendar-year return           Any payments made after the date you filed that return can 
  on August 4, 2023, requesting to receive your                only be claimed as an overpayment credit on a subsequent 
  overpayment as a credit. August 4, 2023, is after the        amended return. 
  original filing and payment due date of the 2022 tax         May I apply my credit to a different tax year? 
  year (April 18, 2023, for calendar-year filers), but is 
                                                               Yes. If you wish to apply your credit to a tax year other than 
  before the original filing and payment due date of the 
                                                               the one during which you file this return, you must submit a 
  2023 tax year (April 15, 2024, for calendar-year filers). 
                                                               separate request in writing to: 
  Your credit will be applied against your 2023 tax year 
  liability.                                                   ILLINOIS DEPARTMENT OF REVENUE
                                                               PO BOX 19004
  Example 3: You file your 2022 calendar-year                  SPRINGFIELD IL 62794-9004
  return on April 23, 2024, requesting to receive your                Submit your request at the time you file your return. 
  overpayment as a credit. April 23, 2024, is after the        Do not submit your return to this address.
  original filing and payment due date of the 2023 tax 
                                                               Your request must include 
  year (April 15, 2024, for calendar-year filers), but is 
  before the original filing and payment due date of the       • your name, 
  2024 tax year (April 15, 2025, for calendar-year filers).  •   your FEIN, 
  Your credit will be applied against your 2024 tax year       • the tax year of the return creating the overpayment, and
  liability.
                                                               • the tax year you wish to have the credit apply.
  If you wish to apply the credit to a different tax year, 
                                                               If you do not follow these instructions, your election will be 
see “May I apply my credit to a different tax year?”
                                                               considered invalid and we will not apply your credit as you 
With what date will my credit apply against my tax             requested.
liability?
                                                               If you submit a valid request, we will apply your credit as you 
If your 2022 return was filed                                  requested and notify you. Once made, your election to change 
‰  on or before the extended due date of your return           the tax year to which your credit will apply is irrevocable. 
 (October 16, 2023, for calendar-year filers), your credit     Requests will be worked in the order we receive them.
 is considered to be paid on the original due date of this            You may only apply your credit to tax years occurring 
 return (April 18, 2023, for calendar-year filers).            after the year of the return creating the overpayment. If you 
 However, if all or a portion of your overpayment results      request to apply more credit than our records show you have 
 from payments made after the original due date of this        available, we will apply the maximum amount available and 
 return, that portion of your credit is considered to be paid  notify you of the difference.
 on the date you made the payment.                             Lines 59 — Follow the instructions on the form. Your refund 
  Example 1: You file your 2022 calendar-year return           will not be issued if you do not file a processable return.
  on or before the extended due date of your return                   Your refund may be reduced by us to satisfy any 
  requesting $500 be applied as a credit. All of your          unpaid tax, penalty, and interest due for this year or any other 
  payments are made before the original due date of            year.
  your return. Your credit of $500 will be considered to 
                                                               Line 60 — Direct deposit information. 
  be paid on April 18, 2023. 
                                                               If you choose to deposit your refund directly into your 
  Example 2: You file your 2022 calendar-year 
                                                               checking or savings account, you must 
  return on or before the extended due date of your 
  return requesting $500 be applied as a credit. Your          • Enter your routing number.
  overpayment includes payments of $400 you made                 •    For a checking account, your routing number must  
  before the original due date of your return, and a $100             be nine digits and the first two digits must be 01   
  payment you made on June 1, 2023. Your credit of                    through 12 or 21 through 32. 
  $400 will be considered to be paid on April 18, 2023.               The sample check following these instructions has  
  The remaining $100 credit will be considered to be                  an example of a routing number.
  paid on June 1, 2023. 
                                                                 •    For a savings account, you must contact your    
‰  after the extended due date of your return, your credit            financial institution for your routing number.
 is considered to be paid on the date you filed the return on 
                                                               •  Check the appropriate box to indicate whether you want  
 which you made the election.
                                                                 your refund deposited into your checking or savings   
  Example 3: You file your 2022 calendar-year return             account.
  on December 1, 2023, requesting $500 be applied  
                                                               •  Enter your account number. 
  as a credit. Your credit of $500 will be considered to  
  be paid on December 1, 2023, because you filed                 •    For a checking account, your account number may  
  your return after the extended due date of your 2022                be up to 17 digits. 
  calendar-year return.                                               The sample check following these instructions    
  If you are filing your return after the extended due                has an example of an account number. 
date, you may only elect to claim an overpayment credit for      •    For a savings account, you must contact your    
payments received on or before the date you filed your return.        financial institution for your account number. 

IL-1041 Instructions (R-02/23)                                                                                      Page 15 of 23

                                                                    Step 8 — Signature, date, and paid preparer’s 
                                                                    information
                                                                    You must sign and date your return. If you do not sign your 
                                                                    return, it will not be considered filed and you may be subject 
                                                                    to a nonfiler penalty.
                                                                    If you pay someone to prepare your return, the income tax 
                                                                    return preparer must also sign and date the return, enter the 
                                                                    preparer tax identification number (PTIN) issued to them by 
                                                                    the Internal Revenue Service, and provide their firm’s name, 
                                                                    FEIN, address, and phone number.
                                                                    If you want to allow the paid preparer listed in this step 
Do not use your account and routing numbers from your 
                                                                    to discuss this return with IDOR, check the box. This 
checking or savings accountdeposit slip.Do not include 
                                                                    authorization will allow your paid preparer to answer any 
your check number. Include hyphens, but omit spaces and 
                                                                    questions that arise during the processing of your return, call 
special symbols. You may have unused boxes. 
                                                                    us with questions about your return, and receive or respond 
      If your financial institution does not honor your request     to notices we send. The authorization will automatically end 
for direct deposit, we will send you a check instead.               no later than the due date for filing your next year’s tax return 
      We do not support international ACH transactions.             (excluding extensions). You may revoke the authorization at 
We will only deposit refunds into accounts located within the       any time by calling or writing us.
United States. If your financial institution is located outside the 
United States, we will send you a check instead of depositing 
your refund into your account. 
Line 61 — Follow the instructions on the form. This is your 
amount of tax due that must be paid in full if $1 or more. If you 
are not paying electronically, complete a payment voucher, 
Form IL-1041-V, make your check or money order payable to 
“Illinois Department of Revenue” and attach them to the 
front of your return.
      If you are paying electronically do not complete and 
attach a payment voucher.
You should also enter the amount you are paying in the 
box located on the top of Page 1 of the Form IL-1041.
We encourage you to let us figure your penalties and interest 
and send you a bill instead of determining these amounts 
yourself. We will compute any penalty and interest due and 
notify you (see General Information, “What are the penalties 
and interest?”). 

Page 16 of 23                                                                                         IL-1041 Instructions (R-02/23)

                               Illinois Schedule D Instructions
                    General Information                          appropriate documentation when requested may result in a 
                                                                 referral to our Audit Bureau for compliance action.
Read this information before completing Illinois Schedule D. 
Amounts listed on the Schedule(s) K-1-T and                      Fiduciaries must complete Illinois Schedule D. Do not 
Schedule(s) K-1-T(3) you complete are carried to your            send a computer printout with line numbers and dollar 
Illinois Schedule D and then reported on your Form IL-1041.      amounts attached to a blank copy of the schedule. Computer 
Therefore, you must complete Schedule(s) K-1-T and               generated printouts are not acceptable, even if they are in the 
Schedule(s) K-1-T(3) before completing Schedule D.               same format as IDOR’s forms. Computer generated forms 
                                                                 from an IDOR-approved software developer are acceptable.
In order to ensure you complete Schedule D correctly, do the 
following in order:                                              What is a resident?
‰  Complete all Schedule(s) K-1-T and                            A resident is
 Schedule(s) K-1-T(3), as applicable, for your beneficiaries     • an individual who is present in Illinois for other than a 
 before completing any section of Illinois Schedule D.             temporary or transitory purpose;
 The information reported on Schedule(s) K-1-T and               • an individual who is absent from Illinois for a temporary or 
 Schedule(s) K-1-T(3) will be used to complete Illinois            transitory purpose but who is domiciled in Illinois;
 Schedule D. See Schedule K-1-T(1) for more information.
                                                                 • the estate of a decedent who at his or her death was 
Complete Section B of Illinois Schedule D before completing        domiciled in Illinois;
Section A of Illinois Schedule D. Section B reports specific 
amounts from each Schedule K-1-T and Schedule K-1-T(3)           • a trust created by a will of a decedent who at his or her 
you completed. Section B is required to be completed in full in    death was domiciled in Illinois; or
order to avoid processing delays, further correspondence, or     • an irrevocable trust, whose grantor was domiciled in 
delays in the processing of any overpayments.                      Illinois at the time the trust became irrevocable. For 
Complete Section A of the Illinois Schedule D. Section A           purposes of this definition, a trust is irrevocable to the 
reports total amounts from Section B, and is required to           extent that the grantor is not treated as the owner of the 
be completed in full in order to avoid processing delays,          trust under Internal Revenue Code (IRC) Sections 671 
further correspondence, or delays in the processing of any         through 678. 
overpayments.                                                    What is a nonresident?
Carry the amount from Illinois Schedule D, Section A, Line 3     A nonresident is a person who is not a resident, as previously 
to your Form IL-1041, as applicable.                             defined. Corporations, S corporations, partnerships, and 
See the Schedule K-1-T(1) Instructions and Illinois              exempt organizations are considered nonresidents for 
Schedule D, Specific Instructions, for more information.         purposes of Illinois Schedule D.
What is the purpose of Illinois Schedule D?                      What do Section B, Lines F and G report?
The purpose of Illinois Schedule D, Beneficiary Information,     Lines F and G report certain items of income and 
is for you to identify any person who was a beneficiary during   pass-through withholding you reported to your nonresident 
your tax year.                                                   beneficiaries on the Schedule K-1-T you issued to them.
Illinois Schedule D also allows you to identify your             How do I determine the amounts to report in Section B, 
beneficiaries that are subject to the Illinois Personal Property Lines F and G?
Tax Replacement Income Tax and to figure the share               Before completing Illinois Schedule D you must complete 
of distributable income or loss that is to be added to or        Schedule(s) K-1-T and Schedule(s) K-1-T(3) for each of 
subtracted from your base income.                                your nonresident beneficiaries, as applicable. The amounts 
Is Schedule D required?                                          reported on those schedules will be used to complete Illinois 
                                                                 Schedule D, Section B, Lines F and G. 
Yes. You are required to have a copy of this form on file. You 
must attach a copy to your Form IL-1041, Illinois Fiduciary      Estates are not required to make pass-through withholding on 
Income and Replacement Tax Return.                               behalf of their nonresident beneficiaries.
Illinois Schedule D supports the amount reported on              See Schedule K-1-T(1) for instructions and more information 
Form IL-1041, Step 7, Line 53, as pass-through withholding       about Schedule K-1-T(3).
you owe on behalf of your nonresident beneficiaries.             What does Section B, Line H report?
Therefore, you must follow the instructions for Illinois 
                                                                 Line H reports the amount of pass-through entity tax credit  
Schedule D, complete it in full, and attach it to your return.
                                                                 you received that is being distributed to your beneficiaries. 
     You must use forms prescribed by IDOR. Separate             This amount will also be reported on the Schedule K-1-T 
statements not on forms provided or approved by IDOR             distributed to the beneficiary.
will not be accepted and you will be asked for appropriate 
documentation. Failure to comply with this requirement 
may delay the processing of your return or the generation 
of any overpayment. Additionally, failure to submit 
IL-1041 Instructions (R-02/23)                                                                                      Page 17 of 23

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

Page 18 of 23                                                                                             IL-1041 Instructions (R-02/23)

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

IL-1041 Instructions (R-02/23)                                  Page 19 of 23

                          Appendix A - Extension Tax Payment Worksheet

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

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

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

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

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

Page 20 of 23                                                                                                         IL-1041 Instructions (R-02/23)

                               Appendix B - Tax Prepayment Worksheets

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

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

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

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

IL-1041 Instructions (R-02/23)                                                                                              Page 21 of 23

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

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

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

Page 22 of 23                                                                                                 IL-1041 Instructions (R-02/23)

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

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

IL-1041 Instructions (R-02/23)                                                                                Page 23 of 23