Illinois Department of Revenue
                                                                       Use for tax year ending on or 
                                                                       after December 31, 2023, and 
                                                                       before December 31, 2024.
  IL-1065 Instructions                                                                                                   2023

               What’s New?                                                              Table of Contents

•  The address change checkbox has been removed from Step 1,           What’s New? ........................................................ 1
  Line B, of the Form IL-1065.
•  IL-4562 has been expanded and includes 60 percent bonus             General Information ............................................ 1
  depreciation.
•  Investment partnerships are required to withhold partnership        Specific Instructions ........................................... 8
  income allocable to Illinois for their nonresident partners. 
•  Schedule K-1-P(4) has been created to calculate investment          Apportionment Formulas .................................. 15
  partnership withholding for each of the investment partnership’s 
  nonresident partners.                                                Illinois Schedule B Instructions ....................... 18
•  Schedule M has been expanded and includes a new subtraction 
  line for cannabis establishments that had deductions disallowed      Appendix A - Extension Tax Payment 
  federally under IRC Section 280E. 
                                                                       Worksheet .......................................................... 22
•  Schedule B, Section B, has been reformatted from 4 columns to 3 
  columns. 
                                                                       Appendix B - Pass-through Withholding 
• Illinois business payment vouchers are no longer year specific. 
  To avoid processing delays, taxpayers submitting paper business      Prepayment Worksheets................................... 23
  vouchers to the Illinois Department of Revenue should ensure 
  that the month and year of their filing period are entered on each   Appendix C - Estimated Payment and  
  voucher. Do not enter your estimated payment due date.               Prepayment Worksheet..................................... 25
•  Partnerships electing to make the election to pay pass-through 
  entity (PTE) tax may now deduct distributions to retired partners 
  when calculating base income subject to PTE tax.

                                        General Information
Who must file Form IL-1065?                                            Partnerships must complete Form IL-1065. Do not send a 
                                                                       computer printout with line numbers and dollar amounts attached 
You must file Form IL-1065, Partnership Replacement Tax Return, 
                                                                       to a blank copy of the return. Computer generated printouts are not 
if you are a partnership (see “Definitions to help you complete your 
                                                                       acceptable, even if they are in the same format as IDOR’s forms. 
Form IL-1065”) and you have base income or loss as defined under 
                                                                       Computer generated forms from an IDOR-approved software 
the Illinois Income Tax Act (IITA) allocable to Illinois.
                                                                       developer are acceptable.
If you are a partnership organized for the sole purpose of playing the 
Illinois State Lottery, you are not required to file a Form IL-1065.   If you are a member of a unitary business group, you may not file a 
                                                                       combined return, but you may have special filing requirements. See 
A person transacting an insurance business organized under a           the instructions for Illinois Schedule UB and “What if I am a member 
Lloyd’s plan of operation may file a Form IL-1065 on behalf of all its of a unitary group?” in the general instructions below for information 
underwriters, including corporations and residents. You must refer to  about your filing requirements.
86 Ill. Adm. Code Section 100.5130, for specific instructions on how 
to properly complete Form IL-1065 and determine what you need to        Form IL-1065 (R-12/23) is for tax year ending on or 
attach to your return.                                                 after December 31, 2023, and before December 31, 2024. For 
                                                                       tax years ending on or after December 31, 2022, and before 
All underwriters who are members of an insurance business organized 
                                                                       December 31, 2023, use the 2022 form. Using the wrong form will 
under a Lloyd’s plan of operation may be included on Form IL-1065. 
                                                                       delay the processing of your return. 
No credit is allowed to any underwriter for its share of tax paid on 
Form IL-1065.                                                          How do I register my business?
What forms must I use?                                                 If you are required to file Form IL-1065, you should register with 
In general, you must obtain and use forms prescribed by the Illinois   IDOR. You may register
Department of Revenue (IDOR). Separate statements not on forms         •  online with MyTax Illinois, our free online account management 
provided or approved by IDOR will not be accepted and you will         program for taxpayers; 
be asked for appropriate documentation. Failure to comply with         •  by completing Form REG-1, Illinois Business Registration 
this requirement may result in failure to file penalties, a delay      Application, and mailing it to the address on the form; or
in the processing of your return, or a delay in the generation         •  by visiting a regional office.
of any overpayment. Additionally, failure to submit appropriate 
documentation when requested may result in a referral to our Audit     Visit our website at tax.illinois.gov for more information.
Bureau for compliance action.

IL-1065 Instructions (R-04/24)           Printed by the authority of the state of Illinois - electronic only - one copy.          Page 1 of 28

Registering with IDOR prior to filing your return ensures that your      We encourage you to make your payments electronically using 
tax returns are accurately processed.                                    MyTax Illinois or Modernized E-File (MeF) systems, or you may 
Your identification numbers as an Illinois business taxpayer are         use Form EFT-1, Authorization Agreement for Certain Electronic 
your federal employer identification number (FEIN) and your Illinois     Payments, to set up an ACH credit or phone debit transaction. These 
account number.                                                          options can be found on our website at tax.illinois.gov. If you make 
                                                                         your payments using MyTax Illinois, MeF, or EFT, do not mail us your 
When should I file?                                                      IL-1065-V forms. You must use one of our electronic payment options 
In general, Form IL-1065 is due on or before the 15th day of the         if IDOR has notified you that you are required to make payments 
4th month following the close of the tax year.                           electronically.
If you are operating as a business organized under the Lloyd’s plan      We will apply each payment to the earliest due date until that liability 
of operation, your due date is the same as your federal return due       is paid, unless you provide specific instructions to apply it to another 
date.                                                                    period. You may also be assessed a bad check penalty if your 
                                                                         remittance is not honored by your financial institution.
Automatic six-month extension — We grant you an automatic 
six-month extension of time to file your partnership tax return. The     Who should sign the return?
automatic extension of time to file is granted whether or not you 
                                                                         Your Form IL-1065 must be signed by a partner or any other officer 
request it. You are not required to file a form in order to obtain this 
                                                                         duly authorized to sign the return. In the case of a bankruptcy, a 
automatic extension. If you expect tax to be due, you must pay any 
                                                                         receiver, trustee, or assignee must sign any return required to be 
tentative tax due, by the original due date of the return, in order to 
                                                                         filed on behalf of the partnership. The signature verifies by written 
avoid interest and penalty on tax not paid by that date. To pay any 
                                                                         declaration (and under penalties of perjury) that the signing individual 
tax due by the original due date of your return:
                                                                         has personally examined the return and the return is true, correct, 
•   visit tax.illinois.gov, for information about ACH credit,            and complete. The fact that an individual’s name is signed to a return 
•   pay using mytax.illinois.gov, or                                     is prima facie evidence that the individual is authorized to sign the 
•   mail Form IL-1065-V, Payment Voucher for Partnership                 return on behalf of the partnership.
    Replacement Tax, using the address on the form.                      If you are operating as a business organized under the Lloyd’s plan of 
If an unpaid liability is disclosed when you file your return, then you  operation, an officer of that plan must sign Form IL-1065.
may owe penalty and interest charges in addition to the tax. See the     Any person paid to prepare the return (other than a regular 
“What are the penalties and interest?” section below. An extension       employee of the taxpayer, such as a clerk, secretary, or bookkeeper) 
of time to file your Form IL-1065 is not an extension of time for        must provide a signature, date the return, enter the preparer tax 
payment of Illinois tax.                                                 identification number (PTIN) issued to them by the Internal Revenue 
If you are operating as a business organized under the Lloyd’s plan      Service, and provide their firm’s name, FEIN, address, and phone 
of operation, the length of your Illinois automatic extension of time to number. 
file is the same as your federal extension.                                    If your return is not signed, any overpayment of tax is 
Additional extensions beyond the automatic extension period —            considered forfeited if, after notice and demand for signature, you fail 
We will grant an additional extension only if an extension is granted    to provide a signature within three years from the date your return 
by the Internal Revenue Service (IRS) beyond the date of the Illinois    was filed.
automatic extension. Your additional Illinois extension will be for the  What are the penalties and interest?
length of time approved by the IRS. You must attach a copy of the 
                                                                         Penalties — You will owe 
approved federal extension to your Form IL-1065. 
                                                                         •  a late-filing penalty if you do not file a processable return by the 
When should I pay?                                                          extended due date;
Payment of tax — You must pay your Illinois Replacement Tax and          •  a late-payment penalty if you do not pay the tax you owe by the 
pass-through withholding reported on behalf of your members or PTE          original due date of the return; 
tax in full on or before the original due date of the return. Failure to 
                                                                         •  a late-payment penalty for underpayment of estimated tax if 
pay the tax due on or before the original due date of the return may 
                                                                            you were required to make estimated tax payments and failed to 
result in penalty and interest. This payment date applies even though 
                                                                            do so, or failed to pay the required amount by the payment due 
an automatic extension for filing your return has been granted. All 
                                                                            date;
payments must be made using Form IL-1065-V, Payment Voucher 
for Partnership Replacement Tax.                                         •  a bad check penalty if your remittance is not honored by your 
                                                                            financial institution; and
Extension Payments —   If you expect tax to be due, you must pay 
any tentative tax due by the original due date of the return using       • a  cost of collection fee if you do not pay the amount you owe 
Form IL-1065-V. See Appendix A for more information.                        within 30 days of the date printed on your bill.
Estimated tax payments — Partnerships who elect to pay PTE               Interest —Interest is calculated on tax from the day after the original 
tax and reasonably expect their total tax liability to exceed $500 are   due date of your return through the date you pay the tax. 
required to make estimated tax payments using Form IL-1065-V.            We will bill you for penalties and interest. For more information about 
Estimated payments are due on the 15th day of the 4th, 6th, 9th, and     penalties and interest, see Publication 103, Penalties and Interest for 
12th months of the tax year. All other partnerships are not required to  Illinois Taxes.
make estimated tax payments. See Appendix C for more information. 
Voluntary Prepayments —   Partnerships who do not elect to pay           What if I am discontinuing my business?
PTE tax or partnerships who elect to pay PTE tax and reasonably          Liquidation or withdrawal from Illinois — If you are a partnership 
expect their total tax liability to be less than $500, may make          that is liquidated or withdraws either voluntarily or involuntarily from 
voluntary prepayments of their own tax liability using Form IL-1065-V.   Illinois during any tax year, you are still required to file tax returns. 
Partnerships who do not elect to pay PTE tax may also use Form           Also, we will pursue the assessment and collection of any taxes 
IL-1065-V to make pass-through withholding prepayments on                owed by you or your partners.
behalf of your partner. See Appendix B and Appendix C for more 
information. 
IL-1065 Instructions (R-04/24)                                                                                                      Page 2 of 28

Sales or transfers — If you are a partnership that, outside the usual                 For amended tax returns filed on or after January 1, 2024, 
course of business, sells or transfers the major part of any one or more of    a late payment penalty will be assessed for any amended return not 
•  the stock of goods which you are in the business of selling,                filed and the resulting liability not paid within 120 days of the federal 
•  the furniture or fixtures of your business,                                 change. See 35 ILCS 735/3-3(b-25) for more information.
•  the machinery and equipment of your business, or
                                                                               What records must I keep?
•  the real property of your business,                                         You must maintain books and records to substantiate any information 
you or the purchaser must complete and send us Form CBS-1,                     reported on your Form IL-1065. Your books and records must be 
Notice of Sale, Purchase, or Transfer of Business Assets, no later             available for inspection by our authorized agents and employees.
than 10 business days prior to the date the sale takes place. Send 
this form, along with copies of the sales contract and financing               Do IDOR and the IRS exchange income                               
agreement, to: 
                                                                               tax information?
  ILLINOIS DEPARTMENT OF REVENUE                                               The IRS and IDOR exchange income tax information for the purpose 
  BULK SALES UNIT                                                              of verifying the accuracy of information reported on federal and 
  PO BOX 19035 
  SPRINGFIELD IL  62794-9035                                                   Illinois tax returns. All amounts you report on Form IL-1065 are 
                                                                               subject to verification and audit.
or
  REV.BulkSales@illinois.gov                                                   Should I round?
                                                                               You must round the dollar amounts on Form IL-1065 and 
What if I need to correct or change my return?                                 accompanying schedules to whole-dollar amounts. To do this, you 
Do not file another Form IL-1065 with “amended” figures to change              should drop any amount less than 50 cents and increase any amount 
your originally filed Form IL-1065. If you need to correct or change           of 50 cents or more to the next higher dollar.
your return after it has been filed, you must file Form IL-1065-X, 
Amended Partnership Replacement Tax Return. Returns filed before               What if I have an Illinois net loss deduction 
the extended due date of the return are treated as your original               (NLD)?
return for all purposes. For more information, see Form IL-1065-X 
                                                                               An Illinois net loss deduction (NLD) can be used to reduce the base 
instructions.
                                                                               income allocable to Illinois only if the loss year return has been filed 
You should file Form IL-1065-X only after you have filed a processable         and to the extent the loss was not used to offset income from any 
Illinois Income Tax return. You must file a separate Form IL-1065-X for        other tax year. S corporations and partnerships, including any that 
each tax year you wish to change.                                              are members of a unitary group, trusts, and non-unitary corporations 
State changes only — File Form IL-1065-X promptly if you discover              should use the Illinois Schedule NLD, Illinois Net Loss Deduction, to 
an error on your Illinois return that does not relate to an error on your      determine any NLD. 
federal return but rather was caused by                                        To determine your “Illinois net loss” start with federal taxable income 
•  a mistake in transferring information from your federal return to your      and apply all addition and subtraction modifications and all allocation 
  Illinois return;                                                             and apportionment provisions.
•  failing to report or misreporting to Illinois an item that has no effect on In order to have any available NLD applied to your return, you must 
  your federal return; or                                                      claim the deduction on Step 7, Line 48. See specific instructions for 
                                                                               Step 7, Line 48.
•  a mistake in another state’s tax return that affects the computation of 
  your Illinois tax liability.                                                 If you have an Illinois net loss for this tax year, you must file Form 
                                                                               IL-1065 reporting the loss in order to carry the loss forward to 
If you are claiming an overpayment, Form IL-1065-X must be filed within        another year.
three years after the extended due date or the date the return was filed, 
or within one year after the tax giving rise to the overpayment was paid,      If corrections have been made to the loss amount (e.g., federal audit 
whichever is latest.                                                           or amended return), you must report the corrected amount when you 
                                                                               file. 
Federal changes only — File Form IL-1065-X if you have filed an 
                                                                                      Ensure you have filed returns for all periods in which you 
amended federal return or if you have been notified by the IRS that they 
                                                                               were required to file an Illinois return. Unfiled returns may result in 
have made changes to your return. This includes any change in your 
                                                                               disallowed losses, processing delays, and further correspondence 
federal income tax liability, any tax credit, or the computation of your 
                                                                               from IDOR. 
federal taxable income as reported for federal income tax purposes, if 
the change affects any item entering into the computation of net income,       If you need more information about Illinois NLD, see Schedule 
net loss, or any credit for any year under the IITA. You must file Form        NLD instructions or the 86 Ill. Adm. Code Sections 100.2050 
IL-1065-X no later than 120 days after the federal changes have been           and 100.2300 through 100.2330, available on our website at 
agreed to or finally determined to avoid a late-payment penalty.               tax.illinois.gov.

If your federal change decreases the tax due to Illinois and                   What are the carry provisions of the Illinois NLD?
you are entitled to a refund or credit carryforward, you must file             For tax years ending on or after December 31, 2021, Illinois net 
Form IL-1065-X within two years plus 120 days of federal finalization.         losses cannot be carried back and can only be carried forward for 
Attach a copy of federal finalization or proof of acceptance from the          20 tax years. 
IRS along with a copy of your amended federal form, if applicable, to          For tax years ending on or after December 31, 2003, and before 
your Form IL-1065-X. Examples of federal finalization include a copy           December 31, 2021, Illinois net losses cannot be carried back, and 
of one or more of the following items:                                         can only be carried forward for 12 years. However, the carryover 
• your audit report from the IRS and                                           period of any net loss that had not expired as of November 16, 2021, 
• your federal record of account verifying your ordinary business              shall be extended from 12 years to 20 years. 
  income.

IL-1065 Instructions (R-04/24)                                                                                                        Page 3 of 28

For tax years ending on or after December 31, 1999, and before              Schedule B, Partners’ or Shareholders’ Information, must be 
December 31, 2003, all Illinois net losses must be carried back two         completed and attached to all Form IL-1065 filings. 
years (unless an election to only carry forward is made) then forward       You are required to attach any Schedule(s) K-1-P, Partner’s 
20 years. The election to carry a loss forward only was made by             or Shareholder’s Share of Income, Deductions, Credits, and 
checking the appropriate box on the original or amended loss-year           Recapture, and Schedule(s) K-1-T, Beneficiary’s Share of Income 
return, whichever showed the loss first. Once the election was made         and Deductions, you receive. Attach Schedule(s) K-1-P and 
to forgo the Illinois carryback provision, the election was irrevocable.    K-1-T you received which lists your name and FEIN in Step 2 of 
Losses incurred in tax years ending before December 31, 1999,               Schedule K-1-P or K-1-T. Do not attach copies of Schedule(s) K-1-P 
can be carried back and carried forward for the periods allowed             you issued and which lists your name and FEIN in Step 1 of 
under Internal Revenue Code (IRC) Section 172, for the tax year in          Schedule K-1-P.
which the loss was incurred. In general, losses incurred in tax years              When filing your Form IL-1065, include only forms and 
                                                                                    
beginning                                                                   schedules required to support your return. Send correspondence 
•  after August 5, 1997, and ending before December 31, 1999,               separately to:
must be carried back two years, then forward 20 years.
                                                                            ILLINOIS DEPARTMENT OF REVENUE
•  on or before August 5, 1997, must be carried back three years,           TAXPAYER CORRESPONDENCE
then forward 15 years.                                                      PO BOX 19044
     For tax years ending on or after December 31, 1996, and                SPRINGFIELD IL  62794-9044
before December 31, 2003, you may have made the election to forgo 
any of the previously mentioned Illinois NLD carryback periods by           Definitions to help you complete your Form IL-1065
checking the appropriate box on your loss year return. This election        All references to “income” include losses.
must have been made by the extended due date of your return and             Base income means federal ordinary income plus separately stated 
once made was irrevocable for that tax year.                                items, modified by additions and subtractions as shown in Steps 
In addition, the special carryover periods in IRC Section 172, as in        2 through 5 of Form IL-1065. See specific instructions for Steps 2 
effect for a particular tax year, would apply to losses incurred in that    through 5.
year. For example, a “specified liability loss” incurred in 1998 may be     Business income means all income (other than compensation) that 
carried back 10 years under IRC Section 172(b)(1)(c).                       may be apportioned by formula among the states in which you are 
Also, no limitations under IRC Section 382 or the separate return           doing business without violating the Constitution of the United States. 
limitation year provisions of the federal consolidated return               All income of a partnership is business income unless it is clearly 
regulations apply to any NLD carryover.                                     attributable to only one state and is earned or received through 
                                                                            activities totally unrelated to any business you are conducting in more 
What is the standard exemption?                                             than one state. Business income is net of all deductions attributable 
The standard exemption is $1,000 multiplied by a fraction in which          to that income.
the numerator is your base income allocable to Illinois and the             Commercial domicile means the principal place from which your 
denominator is your total base income. If you have a change in your         trade or business is directed or managed.
tax year end, and the result is a tax period of less than 12 months,                               means all income other than business income 
                                                                            Nonbusiness income
the standard exemption is prorated based on the number of days in           or compensation. For more information about the different types of 
the short tax year. However, if this is your first or final return, you are nonbusiness income, see the instructions for Illinois Schedule NB, 
allowed to use the full-year standard exemption even if it is a short       Nonbusiness Income.
tax year. If you need further information, see 35 ILCS 401(b).
                                                                            A partnership is an entity that is treated as a partnership for federal 
     For tax years beginning on or after January 1, 2017, the               income tax purposes. A partnership that elects an IRC Section 761 
standard exemption may not be claimed if your unmodified base               exclusion from the federal partnership provisions is also excluded for 
income is $250,000 or more. See Specific Instructions for more              purposes of the IITA. 
information. 
                                                                            Partner includes a person treated as a partner for federal income tax 
What attachments do I need?                                                 purposes.
When filing your return there are certain types of income items             A resident partner means
and subtraction modifications that require the attachment of                •  an individual who is present in Illinois for other than a temporary or 
Illinois or federal forms and schedules. Breakdowns, statements,              transitory purpose;
and other documentation may also be required. Instructions for              •  an individual who is absent from Illinois for a temporary or 
these attachments appear throughout the specific instructions for             transitory purpose but who is domiciled in Illinois;
completing your return.
                                                                            •  the estate of a decedent who at his or her death was domiciled in 
If you are operating as a business organized under the Lloyd’s                Illinois; 
plan of operation, refer to 86 Ill. Adm. Code Section 100.5130, to 
determine what you need to attach to your Form IL-1065.                     •  a trust created by a will of a decedent who at his or her death was 
                                                                              domiciled in Illinois; or
     All Illinois forms and schedules include an “IL Attachment 
No.” in the upper right corner of the form. Required attachments            •  an irrevocable trust if the grantor was domiciled in Illinois at the 
should be ordered numerically behind the tax return, as indicated by          time the trust became irrevocable. For purposes of this definition, 
the IL Attachment No. Failure to attach forms and schedules in the            a trust is irrevocable to the extent that the grantor is not treated 
proper order may result in processing delays.                                 as the owner of the trust under IRC Sections 671 through 678. 
                                                                              For a more detailed explanation of “domicile” and “resident,” see 
Required copies of documentation from your federal return or other            the General Instructions for Form IL-1040, Individual Income Tax 
sources should be attached behind the completed Illinois return.              Return.
You must attach a copy of your U.S. Form 1065, Pages 1 through 5,           Nonresident partner means a partner who is not a resident of 
to your Illinois return if you are required to file federally.              Illinois, as defined previously.
IL-1065 Instructions (R-04/24)                                                                                                      Page 4 of 28

A pass-through entity is any entity treated as a partnership,                All residents and pass-through entities must file their own annual 
subchapter S corporation, or trust for federal income tax purposes.          Illinois Income Tax return and claim a credit for any pass-through 
Pass-through entity income is the income that any partnership,               withholding reported to them.
subchapter S corporation, or trust passes through to its partners,           Investment partnership withholding is the amount required to 
shareholders, or beneficiaries.                                              be reported and paid by the investment partnership on behalf of 
PTE tax is an amount equal to 4.95 percent (.0495) of the taxpayer’s         its nonresident partners who have received partnership income 
calculated net income for the taxable year paid by a partnership             allocable to Illinois. 
(other than a publicly traded partnership under Section 7704 of the          Investment partnership withholding is
Internal Revenue Code) or subchapter S corporation who elects to             •  reported to your partners on Line 55 of the Schedule K-1-P you 
pay the tax for taxable years ending on or after December 31, 2021,              send to them,
and beginning prior to January 1, 2026.
                                                                             •  reported to IDOR on Form IL-1065, Line 59b, and on Schedule B, 
PTE tax credit is the distributive share of the credit allowed as a              and
result of a partnership or S corporation having elected to pay the 
                                                                             •  paid with your return or prepaid with Form IL-1065-V.
PTE tax.   
PTE tax credit is                                                                    Form IL-1000-E, Certificate of Exemption for Pass-through 
                                                                             Withholding, will not exempt an investment partnership from 
•  reported to your partners on the Schedule K-1-P and                       investment partnership withholding.
•  reported to IDOR on your Form IL-1065 and Illinois Schedule B.
A nonresident individual partner of a partnership for a taxable year         What if I am an investment partnership?
in which the election to pay PTE tax was made shall not be required          Effective for tax years ending on or after December 31, 2004, any 
to file an income tax return under the IITA for such taxable year if         partnership that qualifies as an “investment partnership” as defined in 
the only source of net income of the individual (or the individual           the IITA, shall not be subject to replacement tax. 
and the individual’s spouse in the case of a joint return) is from an        For tax years ending on or after December 31, 2023, any partnership 
entity making the PTE election and the credit allowed to the partner         that qualifies as an “investment partnership” as defined in the 
equals or exceeds the individual’s liability for the tax imposed under       IITA Section 1501(a)(11.5)(A-5) is required to withhold for their 
subsections (a) and (b) of Section 201 of the IITA for the taxable           nonresident partners the partner’s share of partnership income 
year.                                                                        allocable to Illinois. See 35 ILCS 5/709.5(d) for more information. 
Pass-through withholding is the amount required to be reported               Investment partnerships with nonresident partners must complete 
and paid by the pass-through entity, who does not elect to pay               and submit Form IL-1065 to report their investment partnership 
PTE tax, on behalf of its nonresident partners, shareholders, and            withholding. Investment partnerships will calculate the investment 
beneficiaries                                                                partnership withholding for each nonresident partner using Illinois 
•  who have not submitted Form IL-1000-E, Certificate of Exemption           Schedule K-1-P(4), Investment Partnership Withholding Calculation 
  for Pass-through Withholding, to the pass-through entity, and              for Nonresident Partners, will carry the withholding amounts from 
                                                                             Schedule(s) K-1-P(4) to Illinois Schedule B, and enter the total 
•  who receive business and nonbusiness income from the                      amount on Form IL-1065 or Form IL-1065-X. 
  pass-through entity.
                                                                                     If the investment partnership has no income subject to 
Pass-through withholding is                                                  investment partnership withholding, the investment partnership is not 
•  reported to your partners on the Schedule K-1-P you send to them,         required to file Form IL-1065.
•  reported to IDOR on your Form IL-1065 and Illinois Schedule B,            Investment partnerships may elect to pay PTE tax for their partners. 
  and                                                                        However, electing to pay PTE tax does not exempt the investment 
•  paid with your return or voluntarily prepaid with Form IL-1065-V.         partnership from investment partnership withholding. Instead, 
                                                                             investment partnerships must calculate their investment partnership 
       If any of your partners are pass-through entities themselves,         withholding prior to calculating the PTE tax. The income subject 
they are required to report and pay pass-through withholding                 to investment partnership withholding will be deducted from the 
on behalf of their own nonresident partners, shareholders, or                base income used to calculate PTE tax prior to making the PTE tax 
beneficiaries on the income you passed through. Your partners may            calculation. See the PTE Tax Worksheet in these instructions for 
claim a credit on their Illinois Income Tax return for pass-through          more information.
withholding you reported and paid on their behalf.                                  Partnerships, including investment partnerships, are 
                                                                                     
Partnerships can both make and receive pass-through withholding.             required to make estimated tax payments if they elect to pay PTE 
•  Pass-through withholding you owe on behalf of your                        tax and their total tax liability is reasonably expected to exceed 
  members is a payment of pass-through withholding you make on               $500. Failure to make estimated tax payments or failure to make 
  behalf of your nonresident partners who have not submitted Form            the required amount of estimated tax payments will result in late-
  IL-1000-E to you. This amount will be reported on Form IL-1065,            payment penalties for underpayment of estimated tax. For more 
  Line 59a.                                                                  information about penalties, see Publication 103, Penalties and 
•  Pass-through withholding reported to you is a credit for                  Interest for Illinois Taxes. 
  pass-through withholding you receive on Schedules K-1-P and                To report the investment partnership withholding on Form IL-1065, 
  K-1-T as a partner, shareholder, or beneficiary of a pass-through          •   for investment partnerships that are only filing to pay 
  entity. This amount will be reported on Form IL-1065, Line 65c.                investment partnership withholding - check the appropriate 
If you are a nonresident and the pass-through withholding reported to            box on Form IL-1065, Line F, and enter the total amount of 
you satisfies your Illinois Income Tax liability, you are not required to        investment partnership withholding on Form IL-1065, Line 59b. 
file an Illinois Income Tax return. If you had Illinois income from other        Complete the remainder of the return with the appropriate 
sources and the pass-through withholding made on your behalf does                figures. Investment partnerships are also required to complete 
not cover your liability, you must file a return to report the tax on all of     all applicable lines of Schedule B.
your Illinois income and claim a credit for pass-through withholding 
made on your behalf. 
IL-1065 Instructions (R-04/24)                                                                                                       Page 5 of 28

• for investment partnerships electing to file a completed              to each partner. Do not file copies of Illinois Schedule K-1-P 
  Form IL-1065 with IDOR - check the appropriate box on Form            that you issue to your partners with your Form IL-1065. 
  IL-1065, Line F, and complete the return with the appropriate         However, you must keep a copy of each Illinois Schedule K-1-P with 
  figures. Enter zero on Step 6, Lines 36 through 46, and Step          your tax records. See Illinois Schedule K-1-P(1), Instructions for 
  7, Line 47. Enter the total amount of investment partnership          Partnerships and S Corporations Completing Schedule K-1-P and 
  withholding on Form IL-1065, Line 59b. Complete the                   Schedule K-1-P(3), for more information.
  remainder of the return with the appropriate figures. Investment      You must use Illinois Schedule K-1-P(3), Pass-through Withholding 
  partnerships are also required to complete all applicable lines of    Calculation for Nonresident Members, to calculate the required tax 
  Schedule B.                                                           you must report and pay on behalf of your nonresident partners who 
All investment partnerships must also complete                          receive business or nonbusiness income from your partnership. You 
• Illinois Schedule K-1-P(4) for each of their nonresident partners,    must complete the schedule if you have business or nonbusiness income 
                                                                        distributable to Illinois nonresident partners who have not provided 
• Illinois Schedule K-1-P for each of their partners (and distribute 
                                                                        you with Form IL-1000-E, Certificate of Exemption for Pass-through 
  the Schedules K-1-P to the partners), 
                                                                        Withholding. You are required to complete Schedule K-1-P(3) for each 
• Schedule B, Section B, Lines A through C, for each of their           such partner and keep a copy of the completed schedule in your files. 
  partners if the investment partnership files Form IL-1065, and        Do not submit Schedule K-1-P(3) to IDOR unless we request it 
• Schedule B, Section B, Line J, to report the amount of                from you. The information entered on this schedule will assist you 
  investment partnership withholding withheld for each applicable       in completing Illinois Schedule B. See Schedule K-1-P(1) for more 
  partner as calculated on the corresponding Schedule K-1-P(4),         information.
  Line 14, if the investment partnership files Form IL-1065.            You must use Illinois Schedule B to supply us with a listing of your 
           In addition, each amount entered on Schedule B,              partners, certain items of income and credits they received from you, 
  Section B, Line J, must be carried to the applicable line of          and pass-through withholding you made on their behalf. You must 
  Schedule B, Section A, Lines 4a through 4e, and added to              complete all lines of Illinois Schedule B, as applicable, and file it with 
  the total to be entered on Schedule B, Section A, Line 5. For         your Form IL-1065.
  reporting purposes, treat any investment partnership withholding 
  amounts entered on Schedule B, Section B, Line J, as if they          What if I am a member of a unitary group?
  were pass-through withholding amounts, with the exception             Partnerships may not join in the filing of a combined return. However, 
  that the amount from Schedule B, Section A, Line 5, would be          you may be required to file a separate unitary return, and file a 
  entered on Form IL-1065, Line 59b, rather than on Line 59a.           Schedule UB, Combined Apportionment for Unitary Business Group, 
Investment partnerships making the election to pay PTE tax must         to apportion your business income. 
also complete                                                           If the following applies, do not file a Schedule UB: If a partnership 
• all other applicable lines of Schedule B, Section B (most notably     is engaged in a unitary business with one or more of its partners, 
  Lines K and L), for each of their partners, and                       but the unitary partners do not own substantially all of the interest 
• Schedule B, Section A, Lines 6 and 7.                                 in the partnership, the partnership should not be included on a 
                                                                        Schedule UB with the partners. Substantial ownership is defined as 
See the specific form, schedule, or line instructions for more detail.  owning more than 90 percent of all the interest in the partnership. 
Credit for investment partnership withholding is distributed to         If a Schedule UB should not be filed, each unitary partner must 
partners on Illinois Schedule K-1-P, Step 7, Line 55. Partners in an    determine the portion of its business income taxed by Illinois 
investment partnership may not be eligible to claim an investment       by adding its share of that partnership’s business income and 
partnership withholding credit reported to them by an investment        apportionment factors (Illinois and everywhere) to its own business 
partnership. See Schedule K-1-P(2) for information about when a         income and apportionment factors (Illinois and everywhere). This rule 
partner may claim investment partnership withholding credit.            applies to you if you are unitary with one or more of your partners 
                                                                        or if you are a partner in another partnership and are engaged in a 
What if I am a publicly-traded partnership?                             unitary business with that partnership. See 86 Ill. Adm. Code Section 
A publicly-traded partnership is not required to withhold tax from its  100.3380(d), for more information.
partners.  A publicly-traded partnership cannot elect to file and pay 
                                                                        If the following applies, you must file a Schedule UB: If you 
PTE tax. 
                                                                        are a partnership who is a shareholder in a corporation and are 
                                                                        engaged in a unitary business with that corporation, or if you are 
What does taxable in other states mean?                                 owned more than 90 percent by members of your unitary business 
Taxable in other states means you are subject to and actually pay       group (determined without regard to the rule prohibiting taxpayers 
“tax” in another state. “Tax” means net income tax, franchise tax       who use different apportionment formulas from being included in a 
measured by net income, or franchise tax for the privilege of doing     unitary business group and the rule prohibiting taxpayers conducting 
business. You are considered taxable in another state if that state     80 percent or more of their business activities outside the United 
has jurisdiction to subject you to a net income tax even though that    States from being included in a unitary business group), and you:
state does not impose such a tax. This definition is for purposes of 
                                                                        •  use the same taxable year as a combined group that includes 
allocating nonbusiness income and apportioning business income 
                                                                           your partners or your subsidiary, you should use the Schedule 
inside or outside Illinois.
                                                                           UB prepared by the combined group in completing your Form 
                                                                           IL-1065; 
When must I use Illinois Schedules K-1-P, 
                                                                        •  use a different taxable year from the combined group that 
K-1-P(3), and B?                                                           includes your partners or your subsidiary, or there is no 
You must use Illinois Schedule K-1-P to supply each partner with           combined group, you must complete your own Schedule UB 
that individual’s or entity’s share of the amounts reported on your        using your own taxable year. 
federal and Illinois tax returns. For Illinois Income Tax purposes, you 
must give a completed Illinois Schedule K-1-P and a copy of the 
Illinois Schedule K-1-P(2), Partner’s and Shareholder’s Instructions, 
IL-1065 Instructions (R-04/24)                                                                                                 Page 6 of 28

If you are required to file a Schedule UB: Use the line reference          •  Mail the first copy of the federal disclosure statement to:
chart in the Schedule UB instructions to help complete your Form             ILLINOIS DEPARTMENT OF REVENUE 
IL-1065. Steps 2 and 3 of your Form IL-1065 must be completed                PO BOX 19029
showing only your separate-company items. The amounts on your                 SPRINGFIELD IL  62794-9029
Form IL-1065, lines 14 through 22 (less Lines 20 and 21) and Lines         •  Attach the second copy to your Illinois Income Tax return for the 
24 through 33 (less Line 25, 26, and 27) shall be the combined totals        tax year that the IRS disclosure was required. Mail the second 
shown on Schedule UB, Step 3, Column E.                                      copy and your Illinois Income Tax return to the address shown on 
Notes concerning specific Form IL-1065 income modifications:                 your return. Do not mail the second copy and your Illinois Income 
•  The addition modification for guaranteed payments on Form                 Tax return to the address listed above.
   IL-1065, Line 20, should be zero. This addition modification for all 
                                                                           What if I need additional assistance or forms?
   partnerships included on the Schedule UB is included in the “other 
   additions” on Schedule UB, Step 3, Column E, Line 8, and so             •  For assistance, forms, or schedules, visit 
   included in Line 22 of the Form IL-1065.                                  our website at tax.illinois.gov or scan the 
                                                                             QR code provided.
•  The subtraction modifications for August 1, 1969, valuation 
   limitation amounts on Form IL-1065, Line 25, and personal service       •  Write us at: 
   income or reasonable allowance for compensation of partners               ILLINOIS DEPARTMENT OF REVENUE
   on Form IL-1065, Line 26, should be zero. These subtraction               PO BOX 19001
   modifications for all partnerships included on the Schedule UB            SPRINGFIELD IL  62794-9001
   are included in the “other subtractions” on Schedule UB, Step 3,        •  Call 1 800 732-8866 or 217 782-3336 (TTY 
   Column E, Line 21, and so included in Line 33 of the Form IL-             at 1 800 544-5304). 
   1065.                                                                   • Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. 
•  The modifications for Form IL-1065, Lines 21 and 27 are not               (Springfield office) and 8:30 a.m. to 5:00 p.m. (all other offices), 
   included as modifications on the Schedule UB. The amount                  Monday through Friday. 
   on your Form IL-1065, Lines 21 or 27, must be computed on 
   the Illinois Schedule B, Column E Worksheet, found in these             Where should I file?
   instructions. Carry the combined total amounts from Schedule UB,        File electronically - 
   Step 3, Column E for each line item of the Column E Worksheet.          • Modernized e-File (MeF)
Use the Line 21 and Line 27 amounts to compute your base income            • Third-party Tax-Prep Software
on Form IL-1065 Line 35. Check the box on Form IL-1065, Line 35 B, 
and complete Form IL-1065, Step 6 by subtracting:                          File on paper - 
•  on Line 36, the combined nonbusiness income of the entire               • If a payment is enclosed, mail your Form IL-1065 to:
   unitary business group, minus the portion allocable to partners           ILLINOIS DEPARTMENT OF REVENUE
   subject to replacement tax, and                                           PO BOX 19053
                                                                             SPRINGFIELD IL  62794-9053
•  on Line 37, the amount received by the entire unitary business 
   group from non-unitary partnerships, partnerships included on           • If a payment is not enclosed, mail your Form IL-1065 to: 
   the Schedule UB, S corporations, trusts, and estates, minus the           ILLINOIS DEPARTMENT OF REVENUE 
   portion allocable to partners subject to replacement tax.                 PO BOX 19031
                                                                             SPRINGFIELD IL  62794-9031
On Form IL-1065, Step 6, Line 40, include the everywhere sales 
amount from Schedule UB, Step 4, Column D, Line 2. On Line 41 of           If you are operating as a business organized under the Lloyd’s plan 
Step 6 of Form IL-1065, include your Illinois sales. On Form IL-1065,      of operation, you should mail your Form IL-1065 to:
Step 6, Lines 44 and 45, include only your separate-company                ATTN: LLOYD’S OF LONDON
nonbusiness income, and the business income or loss apportionable          BUSINESS PROCESSING DIVISION
to Illinois you received from trusts, estates, non-unitary partnerships,   PO BOX 19014
partnerships included on the Schedule UB, and S corporations               SPRINGFIELD IL  62794-9014
minus the portion of those amounts allocable to partners subject to 
replacement tax.
Schedules used to compute any amounts shown must be attached 
to Form IL-1065.
If you need more information, visit our web site at tax.illinois.gov 
and view the 86 Ill. Adm. Code Section 100 referenced in these 
instructions and in the Schedule UB instructions.

What if I participated in a reportable transaction?
If you participated in a reportable transaction, including a “listed 
transaction,” during this tax year and were required to disclose that 
transaction to the IRS, you are also required to disclose that information 
to Illinois.
You must send us two copies of the form you used to disclose the 
transaction to the IRS.

IL-1065 Instructions (R-04/24)                                                                                                   Page 7 of 28

                                               Specific Instructions
Specific instructions for most of the lines are provided on the          P — If you are required to disclose reportable transactions and 
following pages. If a specific line is not referenced, follow the        you have completed federal Form 8886 or federal Schedule M-3, 
instructions on the form.                                                Part II, Line 10, check the appropriate box and attach a copy of the 
                                                                         federal form or schedule to this return. See “What if I participated in a 
Step 1 — Identify your partnership                                       reportable transaction?” for more information.
A — All taxpayers: Type or print your legal business name. If you        Q — If you are claiming a special depreciation addition or 
have a name change from last year, check the corresponding box.          subtraction modifications on Form IL-1065, check the box and attach 
B — Type or print your mailing address.                                  Form IL-4562, Special Depreciation, to your tax return.
          Any related correspondence issued by IDOR will be mailed       R — If you are claiming other addition or subtraction modifications on 
to the address entered on Step 1, Line B.                                Form IL-1065, check the box and attach Schedule M, Other Additions 
C — If this is your first or final return, check the appropriate box and and Subtractions (for businesses), to your tax return.
the box on Line 68 if you have a credit carryforward on your final       S — If you are claiming related-party expenses modifications on 
return.                                                                  your Form IL-1065, check the box and attach Schedule 80/20, 
D — If you checked final return on Line C, answer the questions on       Related-Party Expenses, to your tax return.
Line D, if applicable.                                                   T — Check the box if you are claiming deductions or credits listed 
E — Apportionment Formulas - If you earn income both inside and          on Illinois Schedule 1299-A, Tax Subtractions and Credits. You must 
outside of Illinois, check the appropriate box(es). If you are a unitary check the box and attach Illinois Schedule 1299-A and any other 
business group, check as many boxes as applicable. If more than          required support listed on Schedule 1299-A to your tax return to 
one box is checked, you must complete a Subgroup Schedule for            support any deductions or credits you are claiming or passing to your 
each checked box that is not a sales company. If you earn income         partners.
only inside Illinois, leave this line blank. For more information, see   U — Check this box only if you have sales into Illinois and you are 
the specific instructions for “Apportionment Formulas.”                  not required to allocate them because you are protected by Public 
F — Check the appropriate box if:                                        Law 86-272. Complete Steps 1 through 7 of the IL-1065. 
•   you are an investment partnership. See “What if I am an              V — If you are attaching Subgroup Schedule to your Schedule 
    investment partnership?” under General Information for more          UB, check the box. See Subgroup Schedule and Schedule UB 
    information; or                                                      instructions for more information.
•   you are a publicly-traded partnership. See “What if I am a                  You must complete an IDOR-issued or previously 
    publicly-traded partnership?” under General Information for more     approved Form IL-1065 and corresponding schedules. Do not 
    information.                                                         send a computer printout or spreadsheets with line numbers and 
                                                                         dollar amounts attached to a blank copy of the return. 
G — Check the box if you are making the election to not be treated 
as a partnership under IRC Section 761.                                  If you are operating a business organized under a Lloyd’s plan of 
                                                                         operation, you must refer to 86 Ill. Adm. Code Section 100.5130, for 
H — Check this box if you are a 52/53-week filer. A 52/53-week           specific instructions on how to properly complete Form IL-1065.
filer is a fiscal filer with a tax year that varies from 52 to 53 weeks 
because their tax year ends on the same day of the week instead of 
the last day of the month.                                               Step 2 — Figure your ordinary income or loss
I — Check this box if you elect to file and pay PTE tax in an amount                           — Enter the amount for each line item from 
                                                                         Lines 1 through 5
                                                                         the corresponding line(s) on your U.S. Form 1065, Schedule K. Attach 
equal to 4.95 percent (.0495) of the taxpayer’s calculated net income    a copy of your federal return. See the chart below to determine the 
for the taxable year on Line 61.                                         correct corresponding lines.
J — Check this box if you are paying Pass-through Entity (PTE) Tax 
                                                                                                           U.S. Form 1065,
and you annualized your income on Form IL-2220, Computation of                          Form IL-1065
Penalties for Businesses. Attach Form IL-2220.                                                                 Schedule K
K — Enter your entire federal employer identification number (FEIN).                    Line 1                 Line 1
A partial FEIN will delay processing of your return.                                    Line 2                 Line 2
L — If you are a member of a unitary business group and are                             Line 3                 Line 3c
included on a Schedule UB, Combined Apportionment for Unitary 
                                                                                        Line 4             Lines 5, 6a, 7, 8, 9a 
Business Group, check the box. Enter the entire FEIN of the member 
who prepared the Illinois Schedule UB and attach the Schedule UB                        Line 5                 Line 10
to this return.                                                                  Under federal law, Paycheck Protection Program (PPP) 
M — Enter your North American Industry Classification System             loan forgiveness is not considered taxable income and the business 
(NAICS) Code. If you are unsure of your code, you can research the       expenses covered by the PPP loan proceeds are deductible 
information at www.census.gov/naics or www.irs.gov.                      business expenses. Currently, Illinois tax law has no addition 
N — If you keep your accounting records in a location different from     modification to change this; therefore, the same treatment flows 
the address indicated on Line B, enter the city, the two-letter state    through to the Illinois return and is included as part of federal taxable 
abbreviation, and the Zip Code for the location the records are kept.    income. 
O — If you are making the election to treat all of your income other     Line 6 — Include any items of income or loss from U.S. Form 1065, 
than compensation as business income for this tax year, you must         Schedule K, that are not included on any other line of Step 2 or Step 
check the box on this line and enter zero on Step 6, Lines 36 and        3 of this Form IL-1065. 
44. This election must be made by the extended due date of this 
return. Once made, the election is irrevocable. 
IL-1065 Instructions (R-04/24)                                                                                                      Page 8 of 28

Step 3 — Figure your unmodified base income                               Some interest and intangible expenses may be exempt from this 
                                                                          add-back provision. See Illinois Schedule 80/20 Instructions for more 
or loss                                                                   information including definitions of “affiliated company,” “intangible 
Lines 8 through 10 — Enter the amount for each line item from             expenses,” and “intangible assets.”
the corresponding line on your U.S. Form 1065, Schedule K. See the 
chart below to determine the correct corresponding lines.                 Line 19 — If you are a partner in a partnership, a shareholder 
                                                                          in a subchapter S corporation, or a beneficiary of a trust or an 
                                 U.S. Form 1065,                          estate, include your distributive share of additions received from the 
          Form IL-1065                                                    partnership, S corporation, trust or estate on Schedules K-1-P or 
                                 Schedule K
                                                                          K-1-T. If you receive multiple schedules because you are a recipient 
                                 Sum of Lines 13a 
                Line 8                                                    from multiple entities, you should enter the combined total of Step 
                                     and 13b                              5, Column A, Lines 32 through 37, from all Illinois Schedules K-1-P 
                Line 9               Line 12                              you receive and Step 5, Column A, Lines 30 through 35, from all 
                Line 10              Line 13c                             Illinois Schedules K-1-T you receive. Attach a copy of all Illinois 
                                                                          Schedules K-1-P and K-1-T you received to your form IL-1065.
Line 11 — Include any items of expense 
                                                                           The S corporation or the partnership is required to send 
•  that you are required to state separately to your partners, rather     you an Illinois Schedule K-1-P and the trust or the estate is required 
than include in ordinary income, and                                      to send you an Illinois Schedule K-1-T, specifically identifying your 
•  that would be taken into account by an individual in computing his     share of income.
or her taxable income, and                                                              Include only additions reported to you on the 
•  that are not included on any other line of Step 2 or Step 3 of this    Schedule(s) K-1-P or K-1-T you received from a pass-through entity 
Form IL-1065.                                                             in which you are an investing partner or shareholder or a beneficiary. 
Do not include any of the following items on this line:                   Do not attach copies of Schedules K-1-P you issued to your 
                                                                          partners. You should keep copies of these schedules in your records. 
•  net operating loss carryovers;
•  any qualified business income deduction allowed under                  Line 20 — Enter the guaranteed payments to partners from 
                                                                          U.S. Form 1065, Schedule K, Line 4, excluding the amounts you 
IRC Section 199A;
                                                                          capitalized. 
•  any depletion amounts allowed federally on all of your oil and gas 
properties; and                                                           Line 21 — Complete Illinois Schedule B. Illinois Schedule B, 
                                                                          Section A, Line 3 represents the share of distributable income or 
•  any excess business interest expense under IRC Section 163(j).         loss that is to be added to or subtracted from base income. If the 
Line 13 — This is your total unmodified base income or loss. If           total amount on Illinois Schedule B, Section A, Line 3 is a negative 
you are a member of a unitary group see “What if I am a member            amount (loss), it should be entered on Line 21 as a positive amount. 
of a unitary group?” in the General Instructions for what to enter on     See the “Illinois Schedule B Instructions” following these “Specific 
Line 13.                                                                  Instructions” for more information. Attach Illinois Schedule B to 
                                                                          your Form IL-1065. 
Step 4 — Figure your income or loss                                       Line 22 — Enter the addition amount calculated on Illinois 
Line 14 — Follow the instructions on the form. If you are a member        Schedule M, Step 2, Line 11. Attach a copy of Illinois Schedule 
of a unitary group see “What if I am a member of a unitary group?” in     M to your Form IL-1065. The following are examples of items 
the General Instructions for what to enter on Line 14.                    that must be added to taxable income and are included on Illinois 
 Do not enter negative amounts on Lines 15 through 22.                    Schedule M.
Line 15 — Enter the total of all amounts excluded from unmodified         •  Notes, bonds, debentures, or obligations issued by the 
base income that were received or accrued as federally tax-exempt         Governments of Guam, American Samoa, Puerto Rico, the 
interest (e.g. state, municipal and other interest) and all distributions Northern Mariana Islands, or the Virgin Islands.
of exempt interest received from regulated investment companies           •  Lloyd’s plan of operations loss if reported on your behalf on 
during the tax year.                                                      Form IL-1065, Partnership Replacement Tax Return, and included 
Line 16 — You must add back any amount of Illinois Replacement            in your taxable income.
taxes that you deducted on your U.S. Form 1065 to arrive at your          •  Deductions you claimed this year and in your two most 
federal ordinary income. You are not required to add back taxes from      recent tax years for expenses connected with income from 
other states that you included as a federal deduction.                    an asset or activity which were reported as business income 
A partnership that elects to pay PTE tax must add back the amount         in prior years and as nonbusiness income on this return. See 
of that tax deducted federally, in addition to the add back for           Illinois Schedule NB, Nonbusiness Income, Line 11, and Illinois 
replacement tax deducted.                                                 Schedule NB Instructions for more information.
Line 17 — Enter the addition amount calculated on Form IL-4562, 
Step 2, Line 4. For more information, see Form IL-4562 Instructions.      Step 5 — Figure your base income or loss
Attach Form IL-4562 to your Form IL-1065.                                 Do not enter negative amounts on Lines 24 through 34. 
Line 18 — Enter the interest or intangible expenses, or insurance          A double deduction is prohibited by IITA, Section 203(g). 
premiums paid to an affiliated company, to the extent these expenses      You cannot deduct the same item more than once.
exceed any taxable dividends you received from the affiliated             Line 24 — Enter the total interest received or accrued from U.S. 
company. To compute the amount of this addition, complete Step 2          Treasury bonds, notes, bills, federal agency obligations, and savings 
of Illinois Schedule 80/20 and enter on Line 18 the total from Illinois   bonds included in federal ordinary income. You may not subtract 
Schedule 80/20, Step 2, Line 9. Attach Illinois Schedule 80/20 to         anything that is not identified in Illinois Publication 101  . This amount 
your Form IL-1065.                                                        is net of any bond premium amortization deducted federally.

IL-1065 Instructions (R-04/24)                                                                                                         Page 9 of 28

Line 25 — Enter the amount from Illinois Schedule F (Form IL-1065),                   Include only subtractions reported to you on the 
Gains from Sales or Exchanges of Property Acquired Before August          Schedule(s) K-1-P or K-1-T you received from a pass-through entity 
1, 1969, Line 14. Capital gain, or Section 1245 or 1250 gain, on          in which you are an investing partner, shareholder, or beneficiary. Do 
property acquired before August 1, 1969, may be limited by the value      not attach copies of Schedules K-1-P you issued to your partners. 
of the property on August 1, 1969. See Illinois Schedule F (Form          You should keep copies of these schedules in your records.
IL-1065) Instructions for more information. Attach Illinois Schedule                  Enter the subtraction amount calculated on Illinois 
                                                                          Line 33 —
F and a copy of federal Schedule D (or federal Form 8949),                Schedule M, Step 3, Line 40. Attach a copy of Illinois Schedule M 
federal Form 4797, and federal Form 6252, if filed.                       to your Form IL-1065.
Line 26 — Enter the greater of                                            You may not subtract anything that is not identified below, 
• your personal service income as defined in the now-repealed             on Schedule M (for businesses), or in Illinois Publication 101. 
  IRC Section 1348(b)(1); or                                              Subtractions allowed on Illinois Schedule M include:
• a reasonable allowance for compensation paid or accrued for             •  notes, bonds, debentures, or obligations issued by the 
  services rendered by partners to you.                                      Governments of Guam, American Samoa, Puerto Rico, the 
See 86 Ill. Adm. Code Section 100.2850 for more information.                 Northern Mariana Islands, or the Virgin Islands, to the extent that 
Line 27 — Complete Illinois Schedule B. Illinois Schedule B,                 you were required to add these amounts to your federal ordinary 
Section A, Line 3 represents the share of distributable income or            income.
loss that is to be added to or subtracted from base income. If the        •  the refund of Illinois replacement tax for a prior year, to the extent 
total amount on Illinois Schedule B, Section A, Line 3 is a positive         included in your federal ordinary income.
amount, enter that amount on Line 27. If the total amount on Illinois     •  any other income included on Step 4, Line 23, exempt from 
Schedule B, Section A, Line 3 is negative, leave Line 27 blank and           taxation by Illinois by reason of its Constitution or statutes or 
see the instructions for Line 21. For more information, see the “Illinois    by the Constitution, treaties, or statutes of the United States. 
Schedule B Instructions” following these “Specific Instructions”.            This amount is net of any bond premium amortization deducted 
Attach Illinois Schedule B to your Form IL-1065.                             federally. For more information, see Illinois Publication 101.
Line 28 — Enter the River Edge Redevelopment Zone Dividend                •  the amount equal to the deduction used to compute the federal 
subtraction from Illinois Schedule 1299-A, Step 1, Line 3.                   tax credit for restoration of amounts held under claim of right 
Line 29 — Enter the High Impact Business Dividend subtraction                under IRC Section 1341.
from Illinois Schedule 1299-A, Step 1, Line 6.                            •  contributions you made under the Tax Increment Allocation 
     You must attach Illinois Schedule 1299-A, Tax                           Redevelopment Act to a job training project. For more information, 
Subtractions and Credits, and any other required support listed              see FY Bulletin 1990-40.
on Schedule 1299-A to your Form IL-1065 if you have an amount             Line 35 — This is your base income or loss. 
on Line 28 or Line 29.                                                    Follow the instructions on the form and check a box on Line A or B. 
Line 30 — Enter the subtraction allowance from Form IL-4562,              You must check one of these boxes and follow the instructions for 
Step 3, Line 19. Attach Form IL-4562 to your Form IL-1065.                that line.
Line 31 — Enter the amount from Illinois Schedule 80/20, Step 4,          Check the box on Line A if
Line 23. Attach Illinois Schedule 80/20 to your Form IL-1065.             •  all of your base income or loss is derived inside Illinois; and
You should use Illinois Schedule 80/20 if                                 •  you do not have any income or loss to report on Lines 36, 37, 44, 
•   you added back interest paid to an affiliated company on Step 4,         or 45.
  Line 18. You may subtract any interest received from that                                                                            . All of 
                                                                          If you check the box on Line A, do not complete Step 6
  company during this tax year, up to the amount of your addition         your base income or loss is allocable to Illinois. Skip Step 6, enter 
  for interest expense paid to that company. Also, if you added back      the amount from Step 5, Line 35 on Step 7, Line 47, and complete 
  intangible expenses from a transaction with an affiliated company       the remainder of the return.
  on Line 18, you may subtract any income you received during 
  the tax year from similar transactions with the affiliated company,     Check the box on Line B if any of the following apply
  up to the amount of your addition for intangible expense for that       •  your base income or loss is derived inside and outside Illinois; 
  company. To compute the amount of this subtraction, complete            •  all of your base income or loss is derived outside Illinois; or
  Illinois Schedule 80/20.
                                                                          •  you have income or loss to report on Lines 36, 37, 44, or 45.
•  you are an affiliated company, and you received interest 
  or intangible income from someone who had to add back the               If you check the box on Line B, you must complete all lines 
  interest and intangible expense, or insurance premiums on               of Step 6. Submitting Form IL-1065 with an incomplete Step 6, 
                                                                          including Lines 40, 41, and 42 may result in a delay in processing 
  their Illinois Schedule 80/20. You may subtract your interest or 
                                                                          your return, further correspondence, and you may be required to 
  intangible income from that person.
                                                                          submit further information to support your filing. See the Specific 
Line 32 — Enter your distributive share of subtractions passed            Instructions for Step 6 for more information.
through to you by a partnership, trust, or estate on Schedules K-1-P 
or K-1-T. Do not include any amounts passed through that are              Step 6 — Figure your income allocable to 
reflected on Illinois Schedule 1299-A. Attach a copy of all Illinois      Illinois
Schedules K-1-P and K-1-T you received to your Form IL-1065.              You must check the box on Line B and complete all lines of Step 
     The partnership or S corporation is required to send you an          6 if any portion of Line 35, base income or loss, is derived outside 
Illinois Schedule K-1-P and the trust or the estate is required to send   Illinois, or you have any income or loss to report on Lines 36, 37, 44, 
you an Illinois Schedule K-1-T, specifically identifying your share of    or 45. 
subtractions.
                                                                          If you do not complete all of Step 6, Lines 36 through 46, we may 
                                                                          issue a notice and demand proposing 100 percent of income as 
                                                                          being allocated to Illinois, or in the case of a loss return, a notice 
                                                                          indicating none of your loss as being allocated to Illinois. 
IL-1065 Instructions (R-04/24)                                                                                                         Page 10 of 28

In order to properly allocate your base income or loss you need to       Line 40 — Enter your total sales everywhere. 
determine what portion of the total base income is business income       Line 41 — Enter your total sales inside Illinois. If you have no sales 
or loss that is to be apportioned among all the states in which you do   in Illinois, enter zero. 
business, and what portion is nonbusiness income or loss that is to        Lines 40 and 41 cannot be less than zero. The amount on 
                                                                            
be allocated to a particular state.                                      Line 41 cannot exceed the amount on Line 40.
 Unitary filers who are required to file a Schedule UB -                            Divide Line 41 by Line 40 and enter the result, rounded 
                                                                         Line 42 — 
You must complete both Step 4 of the Schedule UB and Step 6 of           to six decimal places. The result cannot be greater than one or less 
the Form IL-1065.                                                        than zero.
 Investment partnerships that elect to complete Form IL-1065               If you checked the box on Line 35 B and do not complete 
                                                                            
should check the box on Line 35 B, enter zero on Step 6, Lines 36        Lines 40, 41, and 42 we may issue a notice and demand proposing 
through 46 and Step 7, Line 47, and check the corresponding box in       100 percent of your income as being allocated to Illinois, or in the 
Step 1, Line F.                                                          case of a loss return, a notice indicating none of your loss as being 
                 Line by Line Instructions                               allocated to Illinois.
 You must complete all lines of Step 6.                                  Line 43 — Follow the instructions on the form.
Line 36 — Enter the amount of all nonbusiness income or loss             Line 44 — Enter the amount of nonbusiness income or loss 
included in base income, net of any related deductions, plus             allocable to Illinois from Illinois Schedule NB, Column B. Include any 
any recaptured business expenses from Illinois Schedule NB,              nonbusiness income you received from Illinois Schedules K-1-P or 
Column A. Include any nonbusiness income you received from Illinois      K-1-T in the amounts reported on Schedule NB. This amount is net 
Schedules K-1-P or K-1-T in the amounts reported on Schedule NB.         of the portion of your Illinois nonbusiness income distributable to 
Attach Illinois Schedule NB and all Illinois Schedules K-1-P or          partners subject to replacement tax. Attach a copy of Schedule NB 
K-1-T you received to your Form IL-1065. If you do not have an           and all Illinois Schedules K-1-P and K-1-T you received to your 
amount to report on this line, enter zero.                               Form IL-1065. If you do not have an amount to report on this line, 
 If you are making the election to treat all income other than           enter zero.
compensation as business income for this tax year, you must check           If you checked the box in Step 1, Line O, making the election 
the box in Step 1, Line O, and enter zero here and on Line 44. This      to treat all of your income other than compensation as business 
election must be made by the extended due date of this return.           income, then enter zero on Line 44. 
Once made, the election is irrevocable.                                  Line 45 — Enter the amount of the income or loss reported on 
Line 37 — Enter the amount of all business income or loss                Step 6, Line 37 that is apportionable to Illinois as reported by the 
included in base income received from any non-unitary partnership,       non-unitary partnership, partnership included on a Schedule UB, 
partnership included on a Schedule UB, S corporation, trust, or          S corporation, trust, or estate, on Illinois Schedules K-1-P or K-1-T, 
estate, of which you are a partner, or a beneficiary, net of any         net of the portion distributable to partners subject to replacement 
amount distributable to partners subject to replacement tax. See         tax. See Illinois Schedules K-1-P(2) or K-1-T(2) for more information. 
Illinois Schedules K-1-P(2) or K-1-T(2) for more information. Attach     Attach a copy of all Illinois Schedules K-1-P and K-1-T you 
a copy of all Illinois Schedules K-1-P and K-1-T you received to         received to your Form IL-1065. If you do not have an amount to 
your Form IL-1065. If you do not have an amount to report on this        report on this line, enter zero.
line, enter zero.
 The partnership or S Corporation is required to send you                Step 7 — Figure your net income
an Illinois Schedule K-1-P and Schedule K-1-P(2) and the trust or        Line 47 — Follow the instructions on the form. If this amount is a 
the estate is required to send you an Illinois Schedule K-1-T and        loss, you may carry it forward to later years as an Illinois net loss 
Schedule K-1-T(2), specifically identifying your share of income.        deduction (NLD). 
           If you are a partner engaged in a unitary business            Line 48 — Enter your Illinois net loss deduction carryforward as 
with your partnership, you must either file a Schedule UB with that      determined on Illinois Schedule NLD, Step 1, Line 7, total box. 
partnership or include your distributable share of the partnership’s     Attach Illinois Schedule NLD to your Form IL-1065. 
business income in your business income. Do not subtract this 
                                                                         If you are a cooperative and you separate your patronage and 
business income on Line 37.
                                                                         nonpatronage income or loss, complete Schedule INL and follow the 
Lines 40 through 42 —                                                    instructions for computation of your Illinois net loss deduction.
You must complete Lines 40 through 42 if any of the following apply      If any of the loss being claimed on Line 48, originated from a 
•   your business income or loss is derived inside and outside Illinois; company other than the one filing this return, check the box on 
•   all of your business income or loss is derived outside Illinois; or  Line 48 and attach a detailed statement to your return with
•   you have income or loss to report on Lines 36, 37, 44, or 45.        • the FEIN of the company from which you acquired the loss, 
Follow specific instructions below for Lines 40 through 42.              • the reason (e.g., merger) you are allowed to use that company’s 
                                                                           losses, and 
 If you are a financial organization, a transportation 
company, sales company, or a federally regulated exchange,               • the date you acquired the loss.
check the appropriate box in Step 1, Line E (financial organization,        For more information, see the Schedule NLD Instructions.  
transportation company, sales company, or federally regulated 
exchange) and see “Apportionment Formulas” in these instructions.        Line 51 — Divide Line 47 by Line 50 and enter the result, rounded 
                                                                         to six decimal places. This figure cannot be greater than one.
           If you are a partner engaged in a unitary business 
with your partnership, you must either file a Schedule UB with that      Line 52 — The standard exemption is $1,000 multiplied by a 
                                                                         fraction in which the numerator is your base income allocable to 
partnership or include your distributive share of the “everywhere” and 
                                                                         Illinois and the denominator is your total base income. This figure 
“Illinois” sales factors from the partnership in your “everywhere” and 
                                                                         cannot be greater than “$1,000.” The standard exemption is $0.00 if 
“Illinois” sales factors. For more information, see 86 Ill. Adm. Code 
                                                                         your unmodified base income amount on Step 3, Line 13 is $250,000 
Section 100.3380(d).
                                                                         or more. 
IL-1065 Instructions (R-04/24)                                                                                              Page 11 of 28

If you have a change in your tax year end, and the result is a tax        You may claim a replacement tax investment credit of .5 percent 
period of less than 12 months, the standard exemption is prorated         (.005) of the basis of qualified property placed in service in Illinois 
based on the number of days in the short tax year. However, if this is    during the tax year.
your first or final return, you are allowed to use the full-year standard An additional credit of up to .5 percent (.005) of the basis of qualified 
exemption even if it is a short tax year.                                 property is available if your Illinois base employment increased by 
Line 53 — If Line 49 is a loss, enter the amount from Line 49 on 53.      1 percent (.01) or more over the preceding year or if your business 
Do not increase your loss by the exemption allowance on Line 52.          is new to Illinois. Excess credit may be carried forward for five 
                                                                          years following the excess credit year. For more information, see 
Step 8 — Figure the taxes, pass-through                                   Form IL-477 Instructions.
withholding, and penalty you owe                                          Line 59a — For partnerships other than those that qualify as 
Line 55 — Enter your recapture of investment credits from Illinois        “investment partnerships” as defined in the IITA Section 1501(a)
Schedule 4255, Recapture of Investment Tax Credits, Step 5,               (11.5)(A-5). Complete all sections of Illinois Schedule B and enter 
Column D, Line 20.                                                        the amount from Illinois Schedule B, Section A, Line 5, on this line. 
If you claimed an Illinois investment tax credit in a prior year on       This is the amount of pass-through withholding you owe on behalf of 
Form IL-477, Replacement Tax Investment Credits, and any of               your members. Attach Illinois Schedule B to your Form IL-1065. 
the property was disqualified within 48 months of being placed in         See “Definitions to help you complete your Form IL-1065” in these 
service, you must use Illinois Schedule 4255 to compute the amount        instructions for more information. If you complete Line 59a, then 
of recapture. Credit must be recaptured in the year the property          Line 61 should be blank. 
became disqualified.                                                            Investment partnerships calculating investment partnership 
Line 57 — Enter the amount from Form IL-477, Step 1, Line 13.             withholding will enter the amount from Schedule B, Section A, Line 5, 
Attach Form IL-477 and any other required support listed on               on Line 59b. See the Line 59b instructions and “What if I am an 
Form IL-477 to your Form IL-1065.                                         investment partnership?” for more information.

    PTE Income Worksheet
  1a    Base Income from Line 35.  
      Investment Partnerships - Subtract income subject to withholding from base income.                         1a                         00  
  1b  Exempt distributions for retired partners included in Line 1a.                                             1b                         00   
  1   Subtract Line 1b from Line 1a.                                                                             1                          00  
  2a  Amount from Line 26.                                                2a                       00       
  2b  Amount from Line 27.                                                2b                       00
  3   Add Lines 2a and 2b.                                                                                       3                          00
  4   PTE base income. Add Lines 1 and 3.                                                                        4                          00
  5   Nonbusiness income or loss.                                                                                5                          00                              
  6   Business income or loss included in Line 4 from non-unitary partnerships, partnerships 
      included on a Schedule UB, S corporations, trusts, or estates.                                             6                          00                              
  7   Add Lines 5 and 6.                                                                                         7                          00                              
  8   Business income or loss. Subtract Line 7 from Line 4.                                                      8                          00                              
  9   Total sales everywhere. This amount cannot be negative.             9                        00                             
 10   Total sales inside Illinois. This amount cannot be negative.        10                       00                             
 11   Divide Line 10 by Line 9. Round to six decimal places.              11                           
 12   Business income or loss apportionable to Illinois. Multiply Line 8 by Line 11.                             12                         00                              
 13   Nonbusiness income or loss allocable to Illinois.                                                          13                         00                              
 14   Business income or loss apportionable to Illinois from non-unitary partnerships, partnerships 
      included on a Schedule UB, S corporations, trusts, or estates.                                             14                         00           
 15   PTE Income. Add Lines 12 through 14. Enter this amount on Line 60.                                         15                         00 

 PTE Worksheet Instructions
 Line 1a — Enter the base income from Line 35 of your return. If you are an investment partnership, subtract any income that is subject to 
 investment partnership withholding. 
 Line 1b — Enter the amount of distributions for retired partners to the extent that the partner’s distributions are exempt from tax under 
 35 ILCS 5/203(a)(2)(F). Only enter amounts included in the base income from Line 1a.
 Lines 1 through 4 — Follow the instructions on the worksheet.
 Lines 5 and 13 —   Complete a pro forma Illinois Schedule NB allocating nonbusiness income amounts to Illinois including the portion of 
 nonbusiness income or loss distributable to partners subject to replacement tax reported from Form IL-1065, Lines 21 and 27.
 Line 6 through 12 — Follow the instructions for Form IL-1065, Lines 37 through 43.  
 Line 14 — Follow the instructions for Form IL-1065, Line 45, but do not include any income from a partnership or S corporation that made 
 the PTE election.
IL-1065 Instructions (R-04/24)                                                                                                    Page 12 of 28

   Do not include any amount from Schedule B, Section B,                Schedules K-1-P and K-1-T, Step 1, Line 3, must be completed 
Line K, PTE tax credit paid to members, or Line L, PTE tax credit       or the pass-through withholding reported on this line may not be 
received and distributed to members.                                    credited to your return. 
   Do not include on Line 59a any pass-through withholding                      Partners in an investment partnership may not be eligible to 
reported to you on Schedule(s) K-1-P or K-1-T. Pass-through             claim a Schedule K-1-P, Step 7, Line 55 amount reported to them by 
withholding amounts reported to you are included on Step 9,             the investment partnership. See Schedule K-1-P(2) for information 
Line 65c.                                                               about when a partner may claim investment partnership withholding 
Line 59b —  Investment partnerships only. If you are an                 credit.
investment partnership, enter the total amount of investment            See “Definitions to help you complete your Form IL-1065” in these 
partnership withholding you are withholding for your nonresident        instructions for more information.
partners as reported on Schedule B, Section A, Line 5. Nonresident              Do not include on Line 65c any pass-through withholding 
partner investment partnership withholding is calculated on Schedule    you owe on behalf of your members. Pass-through withholding you 
K-1-P(4) and carried over to Schedule B, Section B, Line J, for each    owe on behalf of your members is included on Step 8, Line 59a.
applicable partner. Schedule B, Section B, Line J amounts must 
be carried to the applicable line of Schedule B, Section A, Lines 4a    Line 65d — Enter the amount of Illinois income tax withheld on 
through 4e, and added to the total to be entered on Schedule B,         Forms W-2G from gambling and sports wagering winnings that were 
Section A, Line 5. See “What if I am an investment partnership?”        received by you.
in these instructions and Illinois Schedule K-1-P(4) for more           Line 68 — Enter the amount of overpayment you elect to be carried 
information.                                                            forward to your next tax year. Check the box on this line if this is 
Line 60 —  Complete this line if you elect to file and pay PTE tax      your final return and any remaining carryforward is being transferred 
on your calculated base income. The total amount of PTE credit          to another entity. Attach a detailed statement to your return listing 
allocated to partners cannot exceed the PTE liability reported and      the FEIN of the entity receiving the credit carryforward, the date the 
actually paid by the partnership. Follow the instructions on the PTE    credit was transferred, and the reason for the transfer. 
Income Worksheet on Page 12 to determine the amount to enter on                 Step 1, Line C, must also be completed if you are 
this line.                                                              transferring an overpayment to another entity. 
Line 61 — Follow the instructions on the form. Do not include any       Your credit carryforward will not be applied if you do not file a 
PTE tax credit you received on Schedule(s) K-1-P or K-1-T on            processable return.
this line.                                                                      Your credit carryforward may be reduced by us due to 
   If you complete Line 61, then Line 59a should be blank.              corrections we make to your return, or to satisfy any unpaid tax, 
Line 63 — If you elected to pay PTE tax and your total tax liability is penalty, and interest due for this year or any other year. If we reduce 
$500 or more, enter the amount of any self-assessed underpayment        your credit carryforward, it may result in a late-payment penalty in a 
of estimated tax penalty you figured on Form IL-2220, Penalty           subsequent year.
Worksheet 1, Line 22.                                                   To which tax year will my credit apply?
If you annualized your income in Step 6 of Form IL-2220, be sure        If your 2023 return was filed
completed Form IL-2220 to your Form IL-1065.                              
to check the box in Step 1, Line J of this Form IL-1065. Attach a       ‰ on or before the original filing and payment due date of 
                                                                          your return, your credit will be applied to the next full tax year, 
   If you do not need to annualize your income and do not                 unless you elect to apply the credit to a different tax year.
wish to complete Form IL-2220, we encourage you to let us figure 
your penalties and interest and send you a bill instead of determining         Example 1: You file your 2023 calendar-year return on 
these amounts yourself. We will compute any penalty or interest due            March 1, 2024, requesting to receive your overpayment as 
and notify you.                                                                a credit. March 1, 2024, falls before the original filing and 
                                                                               payment due date of the 2023 tax year (April 15, 2024, for 
Step 9 — Figure your refund or balance due                                     calendar-year filers). Your credit will be applied against your 
   Do not include any PTE tax or PTE tax credit on                             2024 tax year liability.
Lines 65a through 65d. PTE tax is reported on Line 61 and PTE Tax       ‰ after the original filing and payment due date of your return, 
credit is reported for each member on Schedule B, Section B, Line L.      your credit will be applied to the next full tax year in which timely 
Line 65a — Enter the sum of any overpayment to be applied to this         payments can be made as of the date you are filing this return, 
year’s tax return. Take into account any correspondence we may            unless you elect to apply the credit to a different tax year. 
have sent you that changed the amount of your credit carryforward              Example 2: You file your 2023 calendar-year return on 
from the previous year.                                                        August 5, 2024, requesting to receive your overpayment 
Line 65b — Enter the sum of any                                                as a credit. August 5, 2024, is after the original filing and 
• estimated payments or tax prepayments made before the date                   payment due date of the 2023 tax year (April 15, 2024, for 
  this return is filed,                                                        calendar-year filers), but is before the original filing and 
                                                                               payment due date of the 2024 tax year (April 15, 2025, for 
• extension payments before the date this return is filed, and                 calendar-year filers). Your credit will be applied against your 
• any other payments made before the date this return is filed.                2024 tax year liability.
Line 65c — Enter the amount you wish to claim of Illinois                      Example 3: You file your 2023 calendar-year return on 
pass-through withholding (including any eligible investment                    April 28, 2025, requesting to receive your overpayment 
partnership withholding) reported to you by partnerships,                      as a credit. April 28, 2025, is after the original filing and 
S corporations, or trusts on Schedule(s) K-1-P or K-1-T. If you                payment due date of the 2024 tax year (April 15, 2025, for 
received more than one Schedule K-1-P or K-1-T, add the amounts                calendar-year filers), but is before the original filing and 
you wish to claim from all the schedules and enter the total on                payment due date of the 2025 tax year (April 15, 2026, for 
Line 65c. Attach copies of the Schedules K-1-P and K-1-T you                   calendar-year filers). Your credit will be applied against your 
received from the pass-through entities to your Form IL-1065.                  2025 tax year liability.

IL-1065 Instructions (R-04/24)                                                                                                   Page 13 of 28

        If you are filing your return after the extended due date, you Line 69 — Follow the instructions on the form. Your refund will not 
may only elect to claim an overpayment credit for payments received    be issued if you do not file a processable return.
on or before the date you filed your return. Any payments made after            Your refund may be reduced by us to satisfy any unpaid tax, 
the date you filed that return can only be claimed as an overpayment   penalty, and interest due for this year or any other year. 
credit on a subsequent amended return. 
                                                                       Line 70 — Direct deposit information.
With what date will my credit apply against my tax 
                                                                       If you choose to deposit your refund directly into your checking or 
liability?
                                                                       savings account, you must 
If your 2023 return was filed
                                                                       •  Enter your routing number.
‰  on or before the extended due date of your return 
   (October 15, 2024, for calendar-year filers), your credit is                 •  For a checking account, your routing number must be  
   considered to be paid on the original due date of this return                    nine digits and the first two digits must be 01 through  
   (April 15, 2024, for calendar-year filers).                                      12 or 21 through 32. 
   However, if all or a portion of your overpayment results from                    The sample check following these instructions has an  
   payments made after the original due date of this return, that                   example of a routing number.
   portion of your credit is considered to be paid on the date you              •  For a savings account, you must contact your        
   made the payment.                                                               financial institution for your routing number.
        Example 1: You file your 2023 calendar-year return on          •  Check the appropriate box to indicate whether you want your  
        or before the extended due date of your return requesting        refund deposited into your checking or savings account.
        $500 be applied as a credit. All of your payments are made     •  Enter your account number. 
        before the original due date of your return. Your credit of             •  For a checking account, your account number may  
        $500 will be considered to be paid on April 15, 2024.                      be up to 17 digits. 
        Example 2: You file your 2023 calendar-year return on                       The sample check following these instructions has an  
        or before the extended due date of your return requesting                   example of an account number. 
        $500 be applied as a credit. Your overpayment includes 
        payments of $400 you made before the original due                       •  For a savings account, you must contact your        
        date of your return, and a $100 payment you made on                        financial institution for your account number. 
        June 3, 2024. Your credit of $400 will be considered to be 
        paid on April 15, 2024. The remaining $100 credit will be 
        considered to be paid on June 3, 2024. 
‰  after the extended due date of your return, your credit is 
   considered to be paid on the date you filed the return on which 
   you made the election.
        Example 3: You file your 2023 calendar-year return on 
        December 2, 2024, requesting $500 be applied as a 
        credit. Your credit of $500 will be considered to be paid on 
        December 2, 2024, because you filed your return after the 
        extended due date of your 2023 calendar-year return.
May I apply my credit to a different tax year? 
Yes. If you wish to apply your credit to a tax year other than the one Do not use your account and routing numbers from your checking 
during which you file this return, you must submit a separate request  or savings account deposit slip.Do not     include your check number. 
in writing to:                                                         Include hyphens, but omit spaces and special symbols. You may 
ILLINOIS DEPARTMENT OF REVENUE                                         have unused boxes. 
PO BOX 19004
                                                                                If your financial institution does not honor your request for 
SPRINGFIELD IL 62794-9004
                                                                       direct deposit, we will send you a check instead.
        Submit your request at the time you file your return. Do not 
                                                                                We do not support international ACH transactions. We will 
submit your return to this address.
                                                                       only deposit refunds into accounts located within the United States. 
Your request must include                                              If your financial institution is located outside the United States, we 
•  your name,                                                          will send you a check instead of depositing your refund into your 
•  your FEIN,                                                          account.
•  the tax year of the return creating the overpayment, and            Line 71 — 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 
•  the tax year you wish to have the credit apply.                     electronically, complete a payment voucher, Form IL-1065-V, make 
If you do not follow these instructions, your election will be         your check or money order payable to “Illinois Department of 
considered invalid and we will not apply your credit as you requested. Revenue” and attach them to the front of the return.
If you submit a valid request, we will apply your credit as you                 If you are paying electronically do not complete and attach 
requested and notify you. Once made, your election to change the       a payment voucher.
tax year to which your credit will apply is irrevocable. Requests will You should also enter the amount you are paying in the box 
be worked in the order we receive them.                                                              of the Form IL-1065.
                                                                       located on the top of Page 1
        You may only apply your credit to tax years occurring after    We encourage you to let us figure your penalties and interest and 
the year of the return creating the overpayment. If you request to     send you a bill instead of determining these amounts yourself. 
apply more credit than our records show you have available, we         We will compute any penalty and interest due and notify you. See 
will apply the maximum amount available and notify you of the          General Information, “What are the penalties and interest?”
difference.
IL-1065 Instructions (R-04/24)                                                                                                    Page 14 of 28

Step 10 — Signature, date, and paid preparer’s                         If you want to allow the paid preparer listed in this step to discuss 
information                                                            this return with IDOR check the box. This authorization will allow 
                                                                       your paid preparer to answer any questions that arise during the 
You must sign and date your return. If you do not sign your return, 
                                                                       processing of your return, call us with questions about your return, 
it will not be considered filed and you may be subject to a non-filer 
                                                                       and receive or respond to notices we send. The authorization will 
penalty.
                                                                       automatically end no later than the due date for filing your 2024 tax 
If you pay someone to prepare your return, the income tax return       return (excluding extensions). You may revoke the authorization at 
preparer must also sign and date the return, enter the preparer tax    any time by calling or writing us.
identification number (PTIN) issued to them by the Internal Revenue 
Service, and provide their firm’s name, FEIN, address, and phone 
number.

                                    Apportionment Formulas

Certain businesses that derive their income from inside and outside    For more information on what should be included in the numerator 
Illinois require an apportionment formula. The following definitions   or denominator of your sales factor, see 86 Ill. Adm. Code Sections 
will help in completing Step 6.                                        100.3370 and 100.3380.
 Business income — See General Information, “Business                  Sales of tangible personal property are in Illinois if
 income” under “Definitions to help you complete your                  •  the property is delivered or shipped from anywhere to a purchaser 
 Form IL-1065.”                                                        in Illinois, other than the United States government, regardless of 
 Financial organization — any bank, bank holding company,              the Free on Board (f.o.b.) point or other conditions of the sale;
 trust company, savings bank, industrial bank, land bank, safe         •  the property is shipped from Illinois to any place and the 
 deposit company, private banker, savings and loan association,        purchaser is the United States government; or
 building and loan association, credit union, currency exchange, 
                                                                       •  the property is shipped from Illinois to another state and you are 
 cooperative bank, small loan company, sales finance company, 
                                                                       not taxable in the state of the purchaser. 
 investment company, or any person owned by a bank or bank 
 holding company.                                                      For radio and television broadcasting (including cable and satellite 
                                                                       broadcasting), the following sales are in Illinois:
 Revenue miles — A revenue mile is the transportation of one 
 passenger, or one net ton of freight, the distance of one mile.       •  advertising revenue received from an advertiser whose 
                                                                       headquarters is in Illinois;
 Federally regulated exchange — A federally regulated 
 exchange is:                                                          •  fees received by a broadcaster from its viewers or listeners in 
                                                                       Illinois;
 • a regulated entity as defined in 7 U.S.C. Sections 1a(40)(A), 
   1a(40)(B), or 1a(40)(C);                                            •  in the case of fees received by a broadcaster from the producer 
                                                                       or other owner of the contents of a program, the percentage of 
 • an exchange or clearing agency as defined in 15 U.S.C. 
                                                                       the fees equal to the percentage of the broadcast’s viewing or 
   Sections 78c(a)(1) or 78c(a)(23);
                                                                       listening audience located in Illinois; or 
 •  any entity regulated under any successor regulatory structure  
                                                                       •  in the case of a person who owns the contents of a program and 
   to a registered entity, exchange, or clearing agency; or
                                                                       who provides the contents to a broadcaster for a fee or other 
 •  any member of the same unitary group if 50 percent                 charge, the fees received for that program from a broadcaster 
   or more of the business receipts of the unitary business group      located in Illinois. 
    for the taxable year are attributable to the matching, execution,  
                                                                       If the “sales everywhere” amount includes gross receipts from 
    or clearing of transactions conducted by members of the group  
                                                                       the licensing, sale, or other disposition of patents, copyrights, 
    described in the first three bullet points above.
                                                                       trademarks, and other similar items of intangible personal property, 
What if I am a sales company?                                          and the receipts are not covered by the broadcasting rules, then 
If you checked the box in Step 1, Line E, indicating that you are a    these receipts should be allocated in Illinois to the extent the item 
sales company and your income is derived from inside and outside       is used in Illinois during the year the gross receipts are included in 
Illinois, you must apportion your business income as follows:          gross income. An item is used in Illinois if 
Include gross receipts from the license, sale, or other disposition    •  a patent is employed in production, fabrication, manufacturing, or 
of patents, copyrights, trademarks, and similar items of intangible    other processing in Illinois or if the patented product is produced 
personal property in the numerator and denominator of your sales       in Illinois;
factor only if these gross receipts are more than 50 percent of the    •  copyrighted material is printed or other publications originated in 
total gross receipts included in gross income for this tax year and    Illinois; or
each of the two immediately preceding tax years.
                                                                       •  the commercial domicile of the licensee or purchaser of a 
Do not include the following items of income in the numerator or       trademark or other item of intangible personal property is in 
denominator of your sales factor:                                      Illinois.
•  dividends;                                                          If you cannot determine from your (or your related party’s) 
                                                                        
•  amounts included under IRC Section 78;                              books and records in which state an item is used, do not include the 
•  IRC Section 965 inclusion;                                          gross receipts from that item in the numerator or the denominator of 
                                                                       the sales factor.
•  Global Intangible Low-Taxed Income (GILTI) income under IRC 
 Section 951A;
•  subpart F income as defined in IRC Section 952; and
•  any item of income excluded or deducted from base income.
IL-1065 Instructions (R-04/24)                                                                                               Page 15 of 28

For sales of telecommunications services, the following sales are in       •  interest, net gains, and other items of income from intangible 
Illinois:                                                                   personal property received by a taxpayer who is not a dealer 
•  sales of telecommunications service sold on a call-by-call basis,        in that property, if the income-producing activity is performed in 
where the call both originates and terminates in Illinois, or the           Illinois or if the income-producing activity is performed inside and 
call either originates or terminates in Illinois and the customer’s         outside Illinois, and a greater proportion of the income-producing 
service address is in Illinois;                                             activity is performed inside Illinois rather than outside Illinois, 
                                                                            based on performance costs; or
•  retail sales of postpaid telecommunications service if the point of 
origination of the signal is in Illinois;                                  •  in all other cases, if the services are received in Illinois.
•  retail sales of prepaid telecommunications service where                For more information, see 86 Ill. Adm. Code Section 100.3370.
the purchaser receives the prepaid card or other means of 
conveyance at a location in Illinois;                                      What if I am a financial organization?
•  charges imposed at a channel termination point in Illinois;             If you checked the box in Step 1, Line E, indicating that you are a 
•  charges for channel mileage between two channel termination             financial organization and your income is derived from inside and 
points in Illinois;                                                        outside Illinois, cross out the word “sales” on Lines 40 and 41 and 
                                                                           write “Financial organization.” 
•  charges for channel mileage between one or more channel 
termination points in Illinois and one or more channel termination         On Line 40, enter the amount of gross receipts from all sources. 
points outside Illinois, times the number of channel termination           On Line 41 enter the amount of gross receipts from:
points in Illinois divided by total termination channels;
                                                                           •  sales or leases of real property located in Illinois;
•  charges for services ancillary to sales of services in Illinois. If you 
provide ancillary services, but cannot determine where the sales           •  leases or rentals of tangible personal property, to the extent it is 
of the related services are located, your sales are in Illinois if your     located in Illinois during the rental period;
customer is in Illinois;                                                   •  interest income, commissions, fees, gains on disposition, and 
•  access fees charged to a reseller of telecommunication for a call        other receipts from:
that both originates and terminates in Illinois;                            –   loans secured by real or tangible personal property located  
•  50 percent of access fees charged to a reseller of                       in Illinois;
telecommunications services for an interstate call that originates 
                                                                            –   unsecured consumer loans to a resident of Illinois; 
or terminates in Illinois; and
                                                                            –   unsecured commercial or installment loans where the         
•  end user access line charges, if the customer’s service address is 
                                                                            proceeds of the loan are applied in Illinois. If the place of   
in Illinois.
                                                                            application cannot be determined, the gross receipts are in 
For more information, see 86 Ill. Adm. Code Section 100.3371.               Illinois if the office of the borrower from which the loan was 
Illinois lottery winnings and proceeds from sales or other transfers of     negotiated is in Illinois. If neither the place of application 
rights to lottery winnings are in Illinois.                                 nor the office of the borrower can be determined, do not 
                                                                            include the gross receipts in Lines 40 or 41; and
For taxable years ending on or after December 31, 2019, gross 
receipts from winnings from pari-mutuel wagering conducted at a             –  credit card receivables billed to a customer in Illinois.
wagering facility licensed under the Illinois Horse Racing Act of 1975     •  sales of travelers checks and money orders at a location in Illinois;
or from winnings from gambling games conducted on a riverboat 
                                                                           •  interest, dividends, net gains, and other income from investment 
or in a casino or organization gaming facility licensed under the 
                                                                            and trading assets and activities, where the majority of your 
Illinois Gambling Act are Illinois sales and must be included in the 
                                                                            contacts with the asset or activity is in Illinois. The state to which 
numerator of the sales factor. 
                                                                            an asset or activity is assigned in your books and records for 
For taxable years ending on or after December 31, 2021, payments            federal or state regulatory requirements is presumed to be proper 
from Illinois sources of wagering and winnings conducted in                 unless a majority of the evidence shows otherwise or you do not 
accordance with the Sports Wagering Act are allocable to Illinois.          have a fixed place of business in that state. If the place with the 
Sales, other than sales of tangible personal property or                    majority of contacts cannot be determined under these rules, 
telecommunications service, and gross receipts from broadcasting,           the gross receipts are in Illinois if your commercial domicile is in 
or the licensing, sale, or other disposition of patents, copyrights,        Illinois. 
trademarks, and similar items of intangible personal property, or          •  any other transaction, if the gross receipts would be included on 
Illinois lottery winnings or sales proceeds, are in Illinois as follows:    Line 41 under the general instructions for Line 41. 
•  sales or leases of real property in Illinois;                           For more information, see 86 Ill. Adm. Code Section 100.3405.
•  leases or rentals of tangible personal property, to the extent it is    Divide Line 41 by Line 40 and enter the result, rounded to six decimal 
located in Illinois during the rental period;                              places, on Line 42. Complete Lines 43 through 46 as indicated in 
•  interest, net gains, and other items of income from intangible          Specific Instructions for Step 6, Figure your income allocable to 
personal property received by a taxpayer who is a dealer in                Illinois. 
that property from a customer who is a resident of Illinois (for 
individuals) or who is commercially domiciled in Illinois (for all         What if I am a transportation company?
other customers). A taxpayer without actual knowledge of the               If you checked the box in Step 1, Line E, indicating that you are 
residence or commercial domicile of a customer may use the                 a company that furnishes transportation service both inside and 
customer’s billing address.                                                outside Illinois, cross out the word “sales” on Lines 40 and 41 and 
                                                                           write “Transportation.” You must apportion business income as 
                                                                           follows:
                                                                            Transportation by airline — On Line 40, enter the amount of 
                                                                            revenue miles everywhere. On Line 41, enter the amount of 
                                                                            revenue miles in Illinois. Divide Line 41 by Line 40 and enter the 
                                                                            result, rounded to six decimal places, on Line 42.
IL-1065 Instructions (R-04/24)                                                                                                      Page 16 of 28

  Other modes of transportation — On Line 40, enter the amount          If the following applies, do not file a Schedule UB: If a partnership 
  of your gross receipts from providing transportation services. On     is engaged in a unitary business with one or more of its partners, 
  Line 41 enter the amount of gross receipts from Illinois, as follows: but the unitary partners do not own substantially all of the interest 
  •       all gross receipts from transportation that both originates   in the partnership, the partnership should not be included on a 
          and terminates in Illinois; and                               Schedule UB with the partners. Substantial ownership is defined as 
                                                                        owning more than 90 percent of all the interest in the partnership. 
  •       gross receipts from interstate transportation, multiplied     If a Schedule UB should not be filed, the partnership completes its 
          by a fraction equal to the miles traveled in Illinois on all  Form IL-1065 in the same manner as a non-unitary partnership, 
          interstate trips divided by miles traveled everywhere on      and each unitary partner must determine the portion of its business 
          all interstate trips.                                         income taxed by Illinois by adding its share of that partnership’s 
Divide Line 41 by Line 40 and enter the result, rounded to six decimal  business income and apportionment factors (Illinois and everywhere) 
places, on Line 42.                                                     to its own business income and apportionment factors (Illinois and 
                                                                        everywhere). This rule applies to you if you are unitary with one or 
  Transportation of both freight and passengers or 
                                                                        more of your partners or if you are a partner in another partnership 
  transportation by airline and other modes — Compute 
                                                                        and are engaged in a unitary business with that partnership. 
  separate fractions for freight transportation and passenger 
  transportation by airline and for freight transportation and          If the following applies, you must file a Schedule UB: If you are 
  passenger transportation by all other modes of transportation         a partnership who is a shareholder in a corporation and are engaged 
  under A and B, in the list above and enter on Line 42 the average     in a unitary business with that corporation, or if you are owned more 
  of those fractions, weighted by the gross receipts from freight or    than 90 percent by members of a unitary business group (determined 
  passenger transportation by airline or other modes, rounded to six    without regard to the rule prohibiting taxpayers conducting 80 percent 
  decimal places                                                        or more of their business activities outside the United States from 
                                                                        being included in a unitary business group), you are required to use a 
For more information, see 86 Ill. Adm. Code Section 100.3450.           Schedule UB to apportion your business income. See the instructions 
Complete Lines 43 through 46 as indicated in Specific Instructions      for the Schedule UB for more information. Once the Schedule UB 
for Step 6 ,Figure your income allocable to Illinois.                   has been completed, you must apportion your business income as 
                                                                        follows: 
What if I am a federally regulated exchange?
                                                                        On Line 40, enter the “everywhere” sales factor of the entire unitary 
If you checked the box in Step 1, Line E, indicating that you are a 
                                                                        business group from Illinois Schedule UB, Step 4, Line 2, Column D. 
federally regulated exchange and your income is derived from inside 
                                                                        On Line 41, enter only your Illinois sales (including your share of 
and outside Illinois, cross out the word “sales” on Lines 40 and 41 
                                                                        sales of any unitary partnerships in which you are a partner). 
and write “Exchange.” You may apportion your business income as 
follows:                                                                On Lines 44 and 45, enter your own nonbusiness income and the 
On Line 40, enter the amount of business income from all sources.       Illinois portion of business income from non-unitary partnerships in 
On Line 41, enter the amount of business income from:                   which you are a partner, from partnerships included on a Schedule 
                                                                        UB and in which you are a partner, from S corporations in which 
•   receipts attributable to transactions executed on a physical        you are a shareholder, or from trusts or estates of which you are a 
    trading floor located in Illinois;                                  beneficiary.
•   receipts attributable to all other matching, execution, or clearing 
    transactions. This includes, without limitation, receipts from the  What if I want to use an alternative 
    provision of matching, execution, or clearing services to another   apportionment formula?
    entity.                                                             If the apportionment methods prescribed by IITA, Sections 304(a) 
    –     Multiply this amount by 27.54 percent (.2754) for tax years   through (e), and (h) do not fairly and accurately represent the market 
          ending on or after December 31, 2013; and                     for your goods, services, or other sources of business income, 
•   all other receipts for sales in Illinois.                           or lead to a grossly distorted result, you may want to use a more 
                                                                        accurate alternative method. If you want to use an alternative 
Divide Line 41 by Line 40 and enter the result, rounded to six decimal 
                                                                        apportionment method, you must receive permission from IDOR 
places, on Line 42. Complete Lines 43 through 46 as indicated in 
                                                                        prior to filing your return. 
Specific Instructions for Step 6, Figure your income allocable to 
Illinois.                                                                        Your request for an alternative apportionment formula must 
                                                                        follow the requirement of 86 Ill. Adm. Code Section 100.3390. See 
           For any tax year, the Illinois apportionment percentage      the regulations or contact IDOR for more information.
computed using this formula may never be less than the Illinois 
                                                                        If you receive permission to use an alternative formula, you must 
apportionment percentage computed for the first full tax year ending 
                                                                        attach to your Form IL-1065 a copy of the letter granting permission.
on or after December 31, 2013, for which the taxpayer used this 
formula.                                                                Send your request to: 
                                                                         ILLINOIS DEPARTMENT OF REVENUE
What if I am a member of a unitary group?                                LEGAL SERVICES OFFICE
The term “unitary business group” means a group of persons related       SENIOR COUNSEL - INCOME TAX, 5-500
through common ownership, whose business activities are integrated       101 WEST JEFFERSON STREET
with, dependent on, and contribute to each other. In the case of a       SPRINGFIELD IL  62702
corporation, common ownership is defined as the direct or indirect 
ownership or control of more than 50 percent of the outstanding 
voting stock of a corporation. 

IL-1065 Instructions (R-04/24)                                                                                                 Page 17 of 28

                               Illinois Schedule B Instructions 
                                                                      Therefore, you must follow the instructions for Illinois Schedule B, 
                   General Information
                                                                      complete it in full, and attach it to your return.
Read this information before completing Illinois 
                                                                              You must use forms prescribed by IDOR. Separate 
Schedule B. 
                                                                      statements not on forms provided or approved by IDOR will not 
Amounts listed on the Schedule(s) K-1-P, Schedule(s) K-1-P(3), 
                                                                      be accepted and you will be asked for appropriate documentation. 
and Schedule(s) K-1-P(4) you complete are carried to your Illinois 
                                                                      Failure to comply with this requirement may delay the 
Schedule B and then reported on your Form IL-1065. Therefore, 
                                                                      processing of your return or the generation of any overpayment. 
you must complete Schedule(s) K-1-P and Schedule(s) K-1-P(3) or 
                                                                      Additionally, failure to submit appropriate documentation when 
Schedule(s) K-1-P(4) before completing Schedule B. 
                                                                      requested may result in a referral to our Audit Bureau for compliance 
In order to ensure you complete Schedule B correctly, do the          action.
following in order:
                                                                      Partnerships must complete Illinois Schedule B. Do not send a 
‰  Complete all Schedule(s) K-1-P and Schedule(s) K-1-P(3) or         computer printout with line numbers and dollar amounts attached 
    Schedule(s) K-1-P(4), as applicable, for your members before      to a blank copy of the schedule. Computer generated printouts 
    completing any section of Illinois Schedule B. The information    are not acceptable, even if they are in the same format as IDOR’s 
    reported on Schedule(s) K-1-P, Schedule(s) K-1-P(3), and          forms. Computer generated forms from an IDOR-approved software 
    Schedule(s) K-1-P(4) will be used to complete Illinois Schedule   developer are acceptable.
    B. See Schedule K-1-P(1) and Schedule K-1-P(4) instructions 
                                                                              Investment partnerships that file Form IL-1065 must 
    for more information.
                                                                      complete Schedule B, Section B, Lines A through C, for each of 
‰  Complete Section B of Illinois Schedule B before completing        their partners. In addition, investment partnerships must also 
    Section A of Illinois Schedule B. Section B reports specific      complete Schedule B, Section B, Line J, to report the amount of 
    amounts from each Schedule(s) K-1-P, Schedule(s) K-1-P(3),        investment partnership withholding withheld for each applicable 
    and Schedule(s) K-1-P(4) you completed. Section B is required     partner as calculated on the corresponding Schedule K-1-P(4), 
    to be completed in full in order to avoid processing delays,      Line 14. Each amount entered on Schedule B, Section B, Line 
    further correspondence, or delays in the processing of any        J, must be carried to the applicable line of Schedule B, Section 
    overpayments.                                                     A, Lines 4a through 4e, and added to the total to be entered 
‰  Complete Section A of the Illinois Schedule B. Section A reports   on Schedule B, Section A, Line 5. For reporting purposes, 
    total amounts from Section B, and is required to be completed in  investment partnerships must treat any investment partnership 
    full in order to avoid processing delays, further correspondence, withholding amounts entered on Schedule B, Section B, Line 
    or delays in the processing of any overpayments.                  J, as if they were pass-through withholding amounts, with the 
‰  Carry the amount from Illinois Schedule B, Section A, Line 3 and   exception that the amount from Schedule B, Section A, Line 
    Line 5 to your Form IL-1065, as applicable.                       5, would be entered on Form IL-1065, Line 59b, rather than on 
See the Schedule K-1-P(1) instructions, Schedule K-1-P(4)             Line 59a. Investment partnerships making the election to pay 
instructions, and Illinois Schedule B specific instructions for more  PTE tax must complete all other applicable lines of Schedule 
information.                                                          B, Section B (most notably Lines K and L), for each of their 
                                                                      partners, and Schedule B, Section A, Lines 6 and 7.
What is the purpose of Illinois Schedule B?
The purpose of Illinois Schedule B, Partners’ or Shareholders’        What is a resident?
Information, is for you to identify any person who was a partner or   A resident is
shareholder at any time during your tax year.                         •  an individual who is present in Illinois for other than a temporary or 
The Illinois Schedule B also allows you to identify your partners or  transitory purpose;
shareholders that are subject to the Illinois Personal Property Tax   •  an individual who is absent from Illinois for a temporary or 
Replacement Income Tax and to figure the share of distributable       transitory purpose but who is domiciled in Illinois;
income or loss that is to be added to or subtracted from your base    •  the estate of a decedent who at his or her death was domiciled in 
income.                                                               Illinois;
Is Schedule B required?                                               •  a trust created by a will of a decedent who at his or her death was 
Yes. You are required to have a copy of this form on file. You        domiciled in Illinois; or
must attach a copy of Schedule B to your Form IL-1065, Illinois       •  an irrevocable trust, whose grantor was domiciled in Illinois at the 
Partnership Replacement Tax Return to support                         time the trust became irrevocable. For purposes of this definition, 
•   the addition modification claimed on Form IL-1065, Step 4,        a trust is irrevocable to the extent that the grantor is not treated as 
    Line 21,                                                          the owner of the trust under IRC Sections 671 through 678. 
•   the subtraction modification claimed on Form IL-1065, Step 5,     What is a nonresident?
    Line 27,                                                          A nonresident is a person who is not a resident, as previously 
•   the pass-through withholding you owe on behalf of your            defined. Corporations, S corporations, partnerships, and exempt 
    nonresident members on Form IL-1065, Step 8, Line 59a,            organizations are considered nonresidents for purposes of 
•   the investment partnership withholding you owe on behalf of       Illinois Schedule B.
    your nonresident partners on Form IL-1065, Step 8, Line 59b.      What do Section B, Lines G through J report?
•   the pass-through entity tax you pay on behalf of your members     Lines G through J report certain items of income, credits, and 
    on Form IL-1065, Step 8, Line 61, and                             pass-through withholding you reported to your nonresident members 
•   the PTE tax credit you received and distributed to your members   on the Schedule K-1-P you issued to them.
    on Schedule(s) K-1-P. 

IL-1065 Instructions (R-04/24)                                                                                            Page 18 of 28

How do I determine the amounts to report in                            Line 2 — Add the amounts you reported on Step 7, Line 52a 
Section B, Lines G through J?                                          through Line 52x,  and Step 7, Lines 53a through 53b, of all the 
Before completing Illinois Schedule B you must complete                Schedule(s) K-1-P you issued to your partners and enter the total 
Schedule(s) K-1-P and Schedule(s) K-1-P(3) or Schedule(s) K-1-P(4)     here. Include amounts you reported to both your resident and 
for each of your nonresident members, as applicable. The amounts       nonresident members.
reported on those schedules will be used to complete Illinois          Line 3 — Add the amounts shown in Section B, Line E for all the 
Schedule B, Section B, Lines G through J.                              partners or shareholders for which you have checked the box in 
See Schedule K-1-P(1) for instructions and more information about      Section B, Line D. 
Schedule K-1-P(3). See Schedule K-1-P(4) instructions for more                      Do not include 
information about Schedule K-1-P(4).                                                • partners that are identified as individuals or estates in 
What do I report in Section B, Line K?                                                Section B, Line B, or
Line K is used to report the PTE tax credit you distribute to your                  • grantor trusts or other disregarded entities whose 
partners if you elected to file and pay pass-through entity tax.                      grantor or owner is an individual or estate. 
                                                                       Enter the total amount on this line. If this is a 
How do I determine the amounts to report in 
                                                                       •  positive amount, enter this amount on your Form IL-1065, Line 27.
Section B, Line K?
Before completing Illinois Schedule B, Line K, you must determine      •  negative amount (loss), enter this amount as a positive amount on 
each member’s portion of the PTE tax credit using the formula in the        your Form IL-1065, Line 21. 
Schedule B, Section B, Line K instructions.                            Lines 4 through 5 — Report amounts for nonresident 
                                                                       members only.
What do I report in Section B, Line L?
                                                                       Line 4a — Enter the total amount of pass-through withholding or 
Line L is used to report the PTE tax credit you receive and distribute investment partnership withholding you reported on the Schedule(s) 
to your partners. Do not include any PTE tax you are paying on         K-1-P you issued to your nonresident individual members only. 
this line.                                                             Total the amounts reported in Section B, Line J, for members that are 
How do I determine the amounts to report in                            identified with an “I” in Section B, Line B, and enter it here.
Section B, Line L?                                                     Line 4b — Enter the total amount of pass-through withholding or 
Use the Schedule(s) K-1-P or K-1-T you received to determine the       investment partnership withholding you reported on the Schedule(s) 
amount of PTE tax credit you received. Distribute the PTE tax credit   K-1-P you issued to your nonresident estate members only. Total 
based on each member’s share.                                          the amounts reported in Section B, Line J, for members that are 
                                                                       identified with an “M” in Section B, Line B, and enter it here.
Specific Instructions                                                  Line 4c — Enter the total amount of pass-through withholding or 
Section A:  Total members’ information                                 investment partnership withholding you reported on the Schedule(s) 
   Complete Schedule(s) K-1-P and Schedule(s) K-1-P(3),                K-1-P you issued to your partnership and S corporation members 
as applicable, and all of Illinois Schedule B, Section B, before       only. Total the amounts reported in Section B, Line J, for members 
completing Section A.                                                  that are identified with a “P” or “S” in Section B, Line B, and enter it 
Illinois Schedule B, Section A should be completed using the totals    here.
from Illinois Schedule B, Section B. When you submit your return you   Line 4d — Enter the total amount of pass-through withholding or 
should only attach a single page of Section A. If you require multiple investment partnership withholding you reported on the Schedule(s) 
pages of Section B, you may attach as many pages of Section B as       K-1-P you issued to your nonresident trust members only. 
required behind Section A.                                             Include members identified as an exempt organization (trust). Total 
Lines 1 through 3 — Report amounts for both resident and               the amounts reported in Section B, Line J, for members that are 
nonresident members.                                                   identified with a “T” or “A” in Section B, Line B, and enter it here.
Line 1 — Add the amounts you reported on Step 3, Column A, 
Line 10 through Line 19, of all the Schedule(s) K-1-P you issued to 
your partners and enter the total here. Include amounts you reported 
to both your resident and nonresident members.

                                                        Line E Worksheet
Complete this worksheet for each partner or shareholder.

 1  Enter the share of income from Form IL-1065, Line 14, for this partner or shareholder.                  1  _________________
 2  Enter the share of additions distributable to this partner or shareholder from 
    Form IL-1065, Lines 15 through 20 and Line 22.                                                          2 _________________
 3  Add Lines 1 and 2.                                                                                      3 _________________
 4  Enter the share of subtractions distributable to this partner or shareholder from
    Form IL-1065, Lines 24 through 25 and 28 through 33.                                                    4 _________________
 5  Subtract Line 4 from Line 3. If Line 3 is greater than Line 4 (income), 
    enter the result as a positive amount in Line E for this partner or shareholder.
    If Line 4 is greater than Line 3 (loss), enter the result as a negative amount in 
    Line E for this partner or shareholder.                                                                 5 _________________
 
IL-1065 Instructions (R-04/24)                                                                                                     Page 19 of 28

Line 4e — Enter the total amount of pass-through withholding or                    If this partner is a grantor trust or other disregarded entity, 
investment partnership withholding you reported on the Schedule(s)          enter the letter that corresponds to the tax type of the grantor or 
K-1-P you issued to your C corporation members only. Include                owner.
members identified as an exempt organization (corporation). Total           Line C — Enter the entire Social Security number (SSN) or federal 
the amounts reported in Section B, Line J, for members that are             employer identification number (FEIN) of each partner.
identified with a “C” or “N” in Section B, Line B, and enter it here.              If the partner is a foreign entity and does not have an SSN 
Line 5 — Add Section A, Lines 4a through 4e of this Illinois                or FEIN, leave this line blank for that partner. If you leave this line 
Schedule B and enter this amount here and on                                blank, you may be contacted for further information.
• Form IL-1065, Line 59a, for pass-through withholding, or                  Line D — Check the box if the partner is subject to the Illinois 
• Form IL-1065, Line 59b, for investment partnership withholding.           Personal Property Tax Replacement Income Tax or is an exempt 
The amount on Line 5 should match the total amount from Schedule            organization (including an Employee Stock Ownership Plan (ESOP)). 
B, Section B, Line J, for all members on all pages.                         Individuals, estates, or grantor trusts and other disregarded entities 
                                                                            whose grantors or owners are individuals or estates are not subject 
Lines 6 and 7 — 
                                                                            to this tax. 
Line 6 — Add Section B, Line K, for all members of this Illinois 
Schedule B and enter the total here. Enter zero if you paid                 Line E — Enter the total amount of base income or loss distributable 
pass-through withholding.                                                   to this partner, using the Line E Worksheet on Page 19. Enter the 
                                                                            amount from Line E Worksheet, Line 5, here. The total of all the 
Line 7 — Add Section B, Line L, for all members of this Illinois            amounts in Line E must equal your total base income, computed 
Schedule B and enter the total here. This amount should equal the           without regard to the addition claimed on your Form IL-1065, Step 4, 
total of all Schedule(s) K-1-P, Step 7, Line 53a, and Schedule(s)           Line 21, or the subtraction claimed on your Form IL-1065, Step 5, 
K-1-T, Step 7, Line 50, you received. Attach copies of all                  Lines 27.
Schedule(s) K-1-P and K-1-T you received to your Form IL-1065.
                                                                            Line F — If the partner was excluded from pass-through withholding 
If you completed multiple pages of Section B, complete Section A            indicate the reason by entering
one time reporting the totals from all pages of Section B. Place all 
pages of Section B behind the single page of Section A, and attach          •  “T” if you elect to pay PTE tax, 
them to your return.                                                        •  “R” if the partner is an Illinois resident,
                                                                            •  “E” if the partner provided you a Form IL-1000-E, Certificate of 
Section B:        Members’ information                                      Exemption for Pass-through Withholding, indicating that they would 
Columns 1 through 3 — Enter each member’s information                       pay their own tax liability,
using the instructions below.                                                          Partners who provide you Form IL-1000-E must not be 
Line A — Enter the name and address of each partner or                      individual taxpayers. 
shareholder. Use the following examples as a guide.                         •  “P” if you are a publicly-traded partnership or an investment 
If the partner or shareholder is an individual, use the following           partnership and therefore not required to make pass-through 
formats:                                                                    withholding payments on behalf of your partners, or
John Doe               John and Mary Doe             John Doe               •  “N” if the partner or shareholder was an exempt organization and 
111 W. Main Street     111 W Main Street             % Mary Doe             you did not make pass-through withholding payments on their 
Anytown                Anytown                       111 W Main St. #5A     behalf.  
IL  62666              IL  62666                     Anytown                           Taxpayers are not required to make pass-through 
                                                     IL  62666              withholding payments on behalf of their exempt organization 
If the partner or shareholder is a trust or an estate, use the              members, but may do so for tax year ending on or after 
following formats:                                                          December 31, 2014. 
John Doe Bankruptcy Trust                            Estate of John Doe     If you elected to make pass-through withholding payments on behalf 
% Mary Doe, Trustee                                  111 W Main St., Ste 4A of an exempt organization member, leave this line blank for that 
111 W Main Street, Suite 4A                          Anytown                member and complete Lines G through J.
Anytown                                              IL  62666              Lines G through J — Provide the following information from the 
IL  62666                                                                   Schedule(s) K-1-P and Schedule(s) K-1-P(3) or Schedule(s) K-1-P(4) 
                                                                            you completed for each member listed. 
If the partner or shareholder is a corporation (including 
S corporations), or a partnership, use the following formats:                      Investment partnerships do not complete Lines G through I.
Illinois Big Business Group      Illinois Small Business Group              Line G — Enter the amount you reported on Step 3, Line 12, of the 
% John Doe, VP Finance           % Mary Doe                                 Schedule K-1-P(3) you completed for this member. This amount is this 
111 West Main Street, Suite 4    111 West Main Street                       member’s share of Illinois income subject to pass-through withholding. 
Anytown                          Anytown                                           This amount is a dollar amount. Do not list a percentage on 
IL  62666                                  IL  62666                        this line.
Line B — Indicate the type of each partner’s or shareholder’s               Line H — Total the amount you reported on Step 3, Line 13, and 
                                                                            Step 3, Line 16, of the Schedule K-1-P(3) you completed for this 
organization. Enter
                                                                            member. Enter that amount on Line H for this member. This amount is 
•  “I” for individual                                                       this member’s pass-through withholding before credits. 
•  “P” for partnership                                                                 Total the amount you reported on Step 3, Line 14, and 
                                                                            Line I —
•  “M” for estate                                                           Step 3, Line 17, of the Schedule K-1-P(3) you completed for this 
•  “T” for trust                                                            member. Enter that amount on Line I for this member. This amount is 
•  “C” for C corporation                                                    this member’s distributable share of credits. 
•  “S” for S corporation
•  “A” for exempt organization (trust)
•  “N” for exempt organization (corporation)
IL-1065 Instructions (R-04/24)                                                                                                      Page 20 of 28

Line J — Enter the amount of pass-through withholding or 
investment partnership withholding that you made on behalf of 
each member and reported to them on Schedule K-1-P, Step 7, Line 
55. This should match the amount reported on Step 3, Line 19, of the 
Schedule K-1-P(3), or on Step 4, Line 14, of Schedule K-1-P(4), you 
completed for this member.
       For partnerships other than those that qualify as investment 
partnerships, this line should be blank if you elected to pay PTE tax. 
Lines K and L - If the pass-through entity is itself a member in 
an electing pass-through entity, the credit for PTE tax paid by the 
electing pass-through entity passes through to its members as 
follows: 
• If the pass-through entity does not make the election to 
  pay PTE tax, it will only be passing through each member’s 
  distributive share of the PTE tax credit that it received on 
  Schedule(s) K-1-P from electing pass-through entities in which it 
  is a member (Line L). 
• If the pass-through entity does make the election to pay PTE 
  tax, then it passes through to its members both 
  •      the credit for the PTE tax it pays (Line K) and 
  •      each member’s distributive share of the PTE tax credit it 
         received from electing pass-through entities in which it is a 
         member (Line L).  
  Add each member’s Line K and Line L. Enter the total on each 
  member’s Schedule K-1-P, Step 7, Line 53a. 
       Investment partnerships are allowed to use PTE tax credit 
that was distributed to them to offset their investment partnership 
withholding liability. Investment partnerships should reduce the 
amount of PTE tax credit available for distribution to its partners by 
the amount used to offset their investment partnership withholding 
liability as calculated on Illinois Schedule(s) K-1-P(4). See the 
Schedule K-1-P(4) instructions for more information.
Line K — Enter the member’s share of the PTE tax credit. To 
determine the share of PTE tax credit due for each member, multiply 
the member’s distributive share of pass-through entity income 
reported on Form IL-1065, Line 60, by 4.95 percent (.0495). 
            The total credits allocated to all members may not 
exceed the PTE liability reported on Form IL-1065, Line 61. The total 
credits may also not exceed the PTE amount actually paid to IDOR. 
If you overpaid your PTE liability, the overpayment may be refunded 
to the electing partnership or S corporation.
Include this amount on each member’s Schedule K-1-P, Step 7, 
Line 53a.  
       This line should be blank if you made pass-through 
withholding payments.

  Member’s Schedule B, Line E amount         Total       Member’s 
                                             PTE    =    share of PTE 
  Total amount of Schedule B, Line E × tax paid          tax credit

Line L — Enter each member’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 members 
in the same proportion that the pass-through income is distributed 
to your members. Also include this amount on each member’s 
Schedule K-1-P, Step 7, Line 53a.
If you have more than three members to report, and additional 
space is needed, complete and attach additional pages of Illinois 
Schedule B, Section B. After you have completed Section B, listing 
all required amounts for your members, complete the single page of 
Illinois Schedule B, Section A.

IL-1065 Instructions (R-04/24)                                         Page 21 of 28

                               Appendix A - Extension Tax Payment Worksheet
Use this worksheet if all of the following apply to you:
•     you are required to file Form IL-1065,
•     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 7 of the worksheet shows you owe tentative tax, pay the full amount due either by filing and paying with Form IL-1065-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. 
Reminder: Entities electing to pay PTE tax must make estimated payments if their total tax due is expected to be greater than $500. See 
Appendix C.
Extension Tax Payment Worksheet (for your records)
     1Enter the total tax you expect to owe for this tax year.                                              1 
     2Enter the total amount of estimated tax payments or prepayments you made and  
     any overpayment you elected to be credited for this tax year.                                          2 
  3  Enter any withholding reported to you and pass-through withholding (including any eligible investment  
     partnership withholding) made on your behalf for this tax year.                                        3 
  4   Enter the amount of any previous tax payment you have made for this tax year.                         4 
  5   Enter the estimated replacement tax investment credits.                                               5 
  6   Add lines 2 through 5 and enter the result here.                                                      6 
  7   Subtract Line 6 from Line 1. This is your tentative tax due. Enter the result here and on 
     Form IL-1065-V.                                                                                        7 

Extension Tax Payment Worksheet Instructions
Line 1 —  Enter the total amount of replacement tax you expect to owe for this tax year (including recapture of investment credits using  
            Schedule 4255 and pass-through withholding payments you will owe on behalf of your members or PTE tax you elect to pay on  
            Schedule B).
Line 2 —  Enter the total amount of estimated tax payments or prepayments you made and any overpayment you elected to be credited for  
            this tax year.
Line 3 —  Enter the total amount of Illinois income tax withheld on Form(s) W-2G and the amount of pass-through withholding (including any 
            eligible investment partnership withholding) paid on your behalf and reported to you on Illinois Schedule(s) K-1-P or K-1-T. 
Line 4 —  Enter the amount of any previous tax payment you have made for this tax year. 
Line 5 —   Enter the amount of any estimated replacement tax investment credits from Form IL-477, Replacement Tax Investment Credit.
Line 6 —  Add Lines 2 through 5. This is your total tax payments and credits.
Line 7 —  Subtract Line 6 from Line 1. This is your tentative tax due. If Line 7 is $1 or more, you must pay the amount due. If Line 7 is less  
            than $1, you do not have to pay. Do not attach your federal Form 7004 to your Form IL-1065-V.

       Pay electronically at tax.illinois.gov or use Form IL-1065-V, Payment Voucher for Partnership 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. 

IL-1065 Instructions (R-04/24)                                                                                Page 22 of 28

     Appendix B - Pass-through Withholding Prepayment Worksheets
Use this worksheet to determine the amount to voluntarily prepay pass-through withholding on behalf of your partners.
 
Pass-through withholding prepayments are entirely voluntary; however, we suggest that you make your prepayments in four equal 
installments during the course of a year. 
     Use Appendix C to prepay your own estimated tax liability, including investment partnership withholding and PTE tax.
      If you are an investment partnership or elect to file and pay PTE tax, do not use this worksheet. Investment 
partnerships and taxpayers electing to file and pay PTE tax cannot report and pay pass-through withholding for their members. 

Check the following boxes to determine which worksheets you should complete. (You may check multiple boxes.)
  1 If you have nonresident individual and estate members 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 members 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 members that you wish to voluntarily prepay pass-through withholding on behalf of,
    check this box and complete Worksheet 3   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
  4 If you have corporation members that you wish to voluntarily prepay pass-through withholding on behalf of, check
    this box and complete Worksheet 4 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Once the worksheets are complete, add the total from each worksheet:  
Worksheet 1, Line 7            ____________
Worksheet 2, Line 7            ____________ 
Worksheet 3, Line 11           ____________
Worksheet 4, Line 11           ____________
                               TOTAL      _____________
This is the amount of each of your voluntary quarterly prepayments for pass-through withholding. Add this total to the amount from 
Appendix C, Step 3, Line 27 to determine your voluntary quarterly prepayments to be made with  Form IL-1065-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 Form IL-1065-V to mail your payment. 
Failure to use the correct voucher for your pre-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. 

Worksheet 1:  Figure your pass-through withholding prepayments for nonresident individual and estate members. If you have nonresident 
individual and estate members 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 members’ 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 members’ 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 Illinois income tax credits expected in the tax year to be passed to the 
    members whose income is included on Lines 1 or 2.                                                     5 
  6 Subtract Line 5 from Line 4 and enter the result.                                                     6 
  7 Divide Line 6 by 4. This is the amount of each of your voluntary prepayments for nonresident
    individual and estate members.                                                                        7 

IL-1065 Instructions (R-04/24)                                                                                       Page 23 of 28

Appendix B - continued

Worksheet 2:  Figure your pass-through withholding prepayments for partnership or S corporation members. If you have partnership or 
S corporation members 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 members’ 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 members’ 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 Illinois replacement tax investment credits expected in the tax year to be passed 
    to the members whose income is included on Lines 1 or 2.                                              5 
  6 Subtract Line 5 from Line 4 and enter the result.                                                     6 
  7 Divide Line 6 by 4. This is the amount of each of your voluntary prepayments for partnership or 
    S corporation members.                                                                                7 

Worksheet 3:  Figure your pass-through withholding prepayments for nonresident trust members. If you have nonresident trust members 
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 members’ share of business income apportioned to Illinois
    expected in the tax year (cannot be less than zero).                                                  1   
  2 Enter your nonresident trust members’ 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 Illinois replacement tax investment credits expected in the tax year to be 
    passed to the members whose income is included on Lines 1 or 2.                                       5 
  6 Subtract Line 5 from Line 4 and enter the result.                                                     6 
  7 Multiply Line 3 by 4.95 percent (.0495) and enter the result.                                         7 
  8 Enter the amount of Illinois income tax credits expected in the tax year to be passed to the 
    members whose income is included on Lines 1 or 2.                                                     8 
  9 Subtract Line 8 from Line 7 and enter the result.                                                     9 
 10 Add Line 6 and Line 9 and enter the result.                                                           10 
 11 Divide Line 10 by 4. This is the amount of each of your voluntary prepayments for nonresident
    trust members.                                                                                        11 

IL-1065 Instructions (R-04/24)                                                                                    Page 24 of 28

Appendix B - continued

Worksheet 4:  Figure your pass-through withholding prepayments for corporation members. If you have corporation members 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 members’ share of business income apportioned to Illinois expected in
    the tax year (cannot be less than zero).                                                          1   
  2 Enter your corporation members’ 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 2.5 percent (.025) and enter the result.                                       4 
  5 Enter the amount of Illinois replacement tax investment credits expected in the tax year to be 
    passed to the members whose income is included on Lines 1 or 2.                                   5 
  6 Subtract Line 5 from Line 4 and enter the result.                                                 6 
  7 Multiply Line 3 by 7 percent (.07) and enter the result.                                          7 
  8 Enter the amount of Illinois income tax credits expected in the tax year to be passed to the 
    members whose income is included on Lines 1 or 2.                                                 8 
  9 Subtract Line 8 from Line 7 and enter the result.                                                 9 
 10 Add Line 6 and Line 9 and enter the result.                                                       10 
 11 Divide Line 10 by 4. This is the amount of each of your voluntary prepayments for corporation 
    members.                                                                                          11

          Appendix C - Estimated Payment and Prepayment Worksheet 
 Instructions
 If you elect to file and pay PTE tax and reasonably expect your total tax liability, including replacement tax and PTE tax, to 
 exceed $500 after Illinois tax credits and withholding payments made on your behalf, you are required to make estimated payments. 
 Estimated Payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. Complete Steps 1, 2, and 3 of this 
 worksheet to compute your next tax year’s estimated tax payments.  
 If you elect to file and pay PTE tax but you do not expect your tax liability, including replacement tax and PTE tax, to exceed $500, 
 you may voluntarily prepay next year’s taxes including PTE tax. Complete Steps 1, 2, and 3 of this worksheet to determine the amount of 
 your quarterly prepayment.
 If you do not elect to file and pay PTE tax, you may voluntarily prepay next year’s tax liability. Complete Steps 2 and 3 of this worksheet 
 to determine the amount of your quarterly tax liability prepayment. If you completed Appendix B, add the total from Step 3 to the total 
 amount from Appendix B to determine your quarterly prepayments to be made with Form IL-1065-V.
 If you are an investment partnership with an expected investment partnership withholding liability, are electing to file and pay PTE 
 tax, and reasonably expect your total tax liability to exceed $500 after Illinois tax credits and withholding payments made on your 
 behalf, you are required to make estimated payments. Estimated Payments are due on the 15th day of the 4th, 6th, 9th, and 12th months 
 of the tax year. Complete Steps 1 and 4 of this worksheet to compute your next tax year’s estimated tax payments. 
 If you are an investment partnership with an expected investment partnership withholding liability and are electing to file and 
 pay PTE tax, but do not expect your total tax liability to exceed $500, you may voluntarily prepay by completing Steps 1 and 4 of this 
 worksheet. 
 If you are an investment partnership with an expected investment partnership withholding liability but are not electing to file and 
 pay PTE tax, you may voluntarily prepay by completing Step 4 of this worksheet. 
 If your income or your original estimated tax changes during the year, complete Step 5 of this worksheet to determine your adjusted 
 payment. 
         Keep this record for your files.
         Pay electronically at tax.illinois.gov or use Form IL-1065-V to mail your payment. 
 Failure to use the correct voucher for your estimated payments or 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. 

IL-1065 Instructions (R-04/24)                                                                                      Page 25 of 28

Appendix C - continued

Step 1 - Figure your PTE Tax - Complete Step 1 only if you are filing and paying PTE tax.
 1a   Enter the amount of base income (Line 35) expected in the next tax year.      
     Investment partnerships - Subtract any income subject to investment partnership withholding  
     from the base income (Line 35) amount.                                                                      1a              00  
 1b   Enter the amount of distributions included in Line 1a for retired partners whose distributions are exempt  
     from tax under 35 ILCS 5/203(a)(2)(F).                                                                      1b              00  
 1    Subtract Line 1b from Line 1a.                                                                             1               00  
 2a  Enter the amount of Personal service income or reasonable  
     allowance for compensation of partners expected in the  
     next tax year (Line 26).                                               2a                    00       
 2b  Enter the amount of income distributable to a partner subject to 
     replacement tax expected in the next tax year (Line 27).               2b                    00
 3   Add Lines 2a and 2b.                                                                                        3               00
 4   PTE base income. Add Lines 1 and 3.                                                                         4               00
 5   Enter the amount of nonbusiness income or loss expected in the next tax year.                               5               00                              
 6   Enter the amount of business income or loss included in Line 4 from non-unitary partnerships,  
     partnerships  included on a Schedule UB, S corporations, trusts, or estates expected in the  
     next tax year.                                                                                              6               00                              
 7   Add Lines 5 and 6.                                                                                          7               00                              
 8   Expected base income or loss. Subtract Line 7 from Line 4.                                                  8               00                              
 9   Enter the amount of total sales everywhere expected in  
     the next tax year.                                                     9                     00                             
  10 Enter the amount of total sales inside Illinois expected in 
     the next tax year.                                               10                          00                             
  11 Divide Line 10 by Line 9. Round to six decimal places.           11                              
  12 Business income or loss apportionable to Illinois expected in the next tax year. 
     Multiply Line 8 by Line 11.                                                                                 12              00                              
  13 Enter the amount of nonbusiness income or loss allocable to Illinois expected in the next tax year.         13              00                              
  14 Enter the amount of business income or loss apportionable to Illinois from non-unitary partnerships, 
     partnerships  included on a Schedule UB, S corporations, trusts, or estates expected in the next tax year.  
     Do not include any income from a partnership or S corporation that will make the PTE election.              14              00           
  15 PTE Income. Add Lines 12 through 14.                                                                        15              00 
  16 PTE Tax. Multiply Line 15 by 4.95 percent (.0495).                                                          16              00 
Step 2 - Figure your Replacement Tax 
  17 Enter the amount of Illinois net income expected in the next tax year.                                      17              00
  18 Multiply Line 17 by 1.5 percent (.015) and enter the result.                                                18              00
  19 Enter the amount of recapture of investment credits expected in the next tax year.                          19              00
  20 Add Lines 18 and 19. Enter the result.                                                                      20              00
  21 Enter the amount of Illinois tax credits expected in the next tax year as calculated on the 
     corresponding Form IL-477 or Schedule 1299-A.                                                               20              00
  22 Enter the amount of pass-through withholding (including any eligible  investment partnership withholding) 
     expected to be made on your behalf in the next tax  year on any Schedule K-1-P or Schedule K-1-T  
     you receive.                                                                                                22              00
  23 Enter the amount of any Illinois gambling and sports wagering winnings withholding shown on  
     the next tax year Form W-2G you expect to receive.                                                          23              00
  24 Add Lines 21 through 23. Enter the result.                                                                  24              00
  25 Subtract Line 24 from Line 20 and enter the result.                                                         25              00

Step 3 - Figure your Estimated Payments or Prepayments
  26 If you completed Step 1, add Lines 16 and 25. Otherwise, enter the amount from Line 25.                     26              00
  27 Divide Line 26 by 4. This is the amount of your quarterly estimated payments or prepayments.                27              00
IL-1065 Instructions (R-04/24)                                                                                                   Page 26 of 28

Appendix C - continued

Step 4 - Figure your investment partnership withholding - Complete Step 4 only if you are an investment partnership.
 1    Enter the total amount of Illinois apportioned business income from other partnerships 
     under IITA Section 305(a).                                                                                1                       00  
 2    Enter the total amount of Illinois allocated nonbusiness income from other partnerships under  
     IITA Sections 305(b) and 303 (other than nonbusiness income that is allocated based on  
     commercial domicile)                                                                                      2                       00
 3   Add Lines 1 and 2. This is the amount of income subject to investment partnership withholding.            3                       00         
 4a   Enter the share of the amount on Line 3 for your partners identified  
     as estates, partnerships, S corporations, and nonresident individuals. 4a                    00  
 4    Multiply the amount on Line 4a by 4.95 percent (.0495).                                                  4                       00  
 5a   Enter the share of the amount on Line 3 for your partners identified  
     as trusts.                                                             5a                    00  
 5    Multiply the amount on Line 5a by 6.45 percent (.0645).                                                  5                       00  
 6a   Enter the share of the amount on Line 3 for your partners identified  
     as corporations.                                                       6a                    00  
 6    Multiply the amount on Line 6a by 9.5 percent (.095).                                                    6                       00  
 7    Add Lines 4, 5, and 6.                                                                                   7                       00                       
 8   Enter the amount of PTE tax credit you expect to be made on your behalf in the next tax year  
     and in which you want to use to offset  your investment partnership withholding.                          8                       00
 9    Subtract Line 7 by Line 8.                                                                               9                       00  
  10    Enter the amount from Appendix C, Step 1, Line 16, if applicable.                                      10                      00  
  11    Add Lines 9 and 10.                                                                                    11                      00  
  12 Enter the amount of Illinois tax credits expected to be earned in the next tax year as would be  
     calculated on the Form IL-477 or Schedule 1299-A.                                                         12                      00
  13 Enter the amount of pass-through withholding (including any eligible  investment partnership withholding) 
     expected to be made on your behalf in the next tax  year as would be reported to you on any  
     Schedule K-1-P or Schedule K-1-T you receive.                                                             13                      00
  14 Enter the amount of any Illinois gambling and sports wagering winnings withholding expected  
     to be made on your behalf in the next tax year as would be reported to you on Form W-2G.                  14                      00
  15 Add Lines 12 through 14. Enter the result.                                                                15                      00
  16 Subtract Line 15 from Line 11 and enter the result.                                                       16                      00
  17 Divide Line 16 by 4. This is the amount of your quarterly estimated payments or prepayments.              17                      00

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

IL-1065 Instructions (R-04/24)                                                                                    Page 27 of 28

Step 5 - Amended worksheet - Complete Step 5 if a change occurs in your original estimated tax.

  1  Enter the amount of PTE income expected in the next tax year.  
    If you are not electing to file and pay PTE tax, enter zero.                                               1 
  2 PTE Tax. Multiply Line 1 by 4.95 percent ( .0495).                                                         2 
  3  Enter the amount of Illinois net income expected in the next tax year.                                    3 
  4  Multiply Line 3 by 1.5 percent (.015) and enter the result.                                               4 
  5  Enter the amount of recapture of investment credits expected in the next tax year.                        5 
  6 Replacement Tax. Add Lines 4 through 5 and enter the result.                                               6 
  7  Enter the amount of Illinois tax credits expected in the next tax year as calculated on the corresponding
    Form IL-477 or Schedule 1299-A.                                                                            7 
  8  Enter the amount of pass-through withholding (including any eligible investment partnership withholding)  
    expected to be made on your behalf in the next tax year on any Schedule K-1-P or Schedule K-1-T  
    you receive.                                                                                               8 
  9  Enter the amount of any Illinois gambling and sports wagering winning withholding expected 
    on the next tax year Form W-2G.                                                                            9 
  10  Add Lines 7 through 9 and enter the result.                                                              10 
 11  Subtract Line 10 from Line 6 and enter the result. This amount may be negative.                           11 
12   Add Line 2 and 11.                                                                                        12 
13   Divide Line 12 by 4.                                                                                      13 
14   Multiply Line 13 by the number of previously due estimated payments.                                      14 
  15  Enter the amount of any estimated tax payments actually paid, timely prior year overpayments, timely 
    pass-through withholding (including any eligible investment partnership withholding) and pass-through  
    entity tax credit paid on your behalf, or timely Illinois gambling and sports wagering winnings  
    withholding shown on Form W-2G you received.                                                               15 
16  Subtract Line 15 from Line 14 and enter the result. This amount may be negative.                           16 
  17  Add Lines 13 and 16 and enter the result. 
    If positive, this is the amount due on your next payment due date. 
    If zero or negative, the amount due on your next payment due date is zero.
    If Line 17 is negative, continue to Line 18. Otherwise, stop here.                                         17 
18  If Line 17 is negative, enter that amount as a positive number.                                            18 
19  Subtract Line 18 from Line 13 and enter the result. 
    This is the amount due on the following due date, if applicable.                                           19 

     Pay electronically at tax.illinois.gov or use Form IL-1065-V to mail your payment. 
Failure to use the correct voucher for your estimated payments or 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. 

IL-1065 Instructions (R-04/24)                                                                                    Page 28 of 28