Highlights for the 2018 Electronic Form IL-1040

More than 5.3 MILLION taxpayers chose an electronic method to file their 2017 Form IL-1040. If you, as a tax professional, do not currently offer the electronic filing option to your clients – start today and expand your client database. Electronic filing is the #1 choice for Illinois taxpayers. Call us at 1 866 440-8680, and we will provide you with one-on-one attention to get you set up to file your clients’ IL-1040 forms electronically.

Form IL-1040 Changes

  • Two new check boxes were added to Step 1 to indicate if the taxpayer or spouse (if married filing jointly) may be claimed as a dependent on another person's return. 
  • The nonresident and part-year resident check boxes have been moved to Step 1. 
  • The Exemptions section has been revised and dependent exemptions will now be reported separately from the primary and spouse exemptions.
  • The standard exemption amount has been extended and the cost-of- living adjustment has been restored. The personal exemption amount for tax year 2018 is $2,225.
  • The individual income tax rate is 4.95% (.0495).

Schedule M, Other Additions and Subtractions for Individuals

  • The Domestic Production Activities Deduction (DPAD) under Internal Revenue Code, Section 199  has been removed from Schedule M. Line 10 is now a reserved field.
  • A new subtraction for contributions made to qualified Illinois ABLE accounts has been added.
  • Account numbers and contribution amounts will now be required when claiming subtractions for Bright Start, Bright Directions, College Illinois, and ABLE contributions.

Schedule CR, Credit for Tax Paid to Other States

  • Changes have been made to the Schedule CR resulting from federal form 1040 changes. Lines that are no longer available on the federal form have been marked as reserved on the Schedule CR.
  • Taxpayers filing a part-year resident return may electronically file with a credit for income tax paid to another state.

Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax

  • Changes have been made to the Schedule NR resulting from federal form 1040 changes. Lines that are no longer available on the federal form have been marked as reserved on the Schedule NR.
  • Illinois net income from Schedule NR will now be reported on IL-1040 instead of the Illinois base income from Schedule NR.

Schedule IL-E/EIC, Illinois Exemption and Earned Income Credit

  • Schedule IL-EIC, Illinois Earned Income Credit, was updated for 2018 to add a place to calculate and provide dependent information to verify dependent exemption allowances and is now named Schedule IL-E/EIC.
  • The earned income credit has increased to 18% (.18) of the federal earned income tax credit.

Schedule G, Voluntary Charitable Donations 

Two funds have been removed and one new fund has been added to the Schedule G. The new fund is the Hunger Relief Fund.

Schedule 1299-C, Income Tax Subtractions and Credits (for individuals)

  • Significant changes have been made to the layout of Schedule 1299-C, Income Tax Subtractions and Credits (for individuals).
  • New Schedule 1299-I, Income Tax Credits Information and Worksheets, provides detailed information about the income tax credits, how to calculate the credits, and where to report the credits on Schedule 1299-C.
  • Two new credits have been added to the Schedule 1299-C: Adoption Credit and Invest in Kids Credit. Both credits may be carried forward for five years.

Schedule K-1-P, Partner’s or Shareholder’s Share of Income, Deductions, Credits, and Recapture

The Invest in Kids Credit, Natural Disaster Credit, and Historic Preservation Credit have been added to the Schedule K-1-P.