Article: 50395
The IL 1299C – Income Tax Subtractions and Credits screen is used to report certain subtractions and credits that apply to Illinois residents, particularly in specialized industries or for qualified adoptions and educational expenses.
- Dividend Subtractions: If you received dividends from corporations located in specific zones (like a River Edge Redevelopment Zone or a High Impact Business zone), enter the corporation name, the name of the zone, and the dividend amount.
- Instructional Materials and Supplies (Code 5740): Licensed Illinois educators can claim qualified expenses by entering their license number, school name, and total eligible expenses paid during the tax year.
- Adoption Credit (Code 5780): Enter identifying details for each adopted child, including birth year/month and any prior credits claimed. Check the Unsuccessful adoption box if applicable
IL 1299-C – Prior Year Tax Credits
This screen allows you to carry forward previously earned Illinois tax credits that are still valid.
- Enter the number of years left to carry the credit, the credit code, and the year/month it was earned.
- Use the Identifying Number field to reference the issuing certificate or entity.
- Enter the credit amount carried or earned, and optionally, the distributive share or transfer amount.
- Multiple entries may be added if you have more than one credit to carry forward.
A full list of available credit codes can be found in the drop-down menu, including but not limited to:
- 5000–5008: Film production, enterprise zone investments
- 5120–5260: Construction, healthcare, and housing investment credits
- 5300–5340: Economic development and R&D incentives
- 5440–5840: Specialized incentives (e.g. Music and Musicians, K–12 Education, Adoption, Quantum Computing, River Edge Jobs)
Note: Some codes, such as 1000, 5660, and 5440, are no longer eligible for carryforward after specific years. Refer to the in-program note or state guidance for details.
How to Add These Screens
- Click on the State Taxes section on the left-hand side of the screen.
- Click the link I’d like to see the forms I’ve filled out or search for a form.
- Use the drop list to select Illinois.
- Under the Credits tab, select 5IL – Schedule 1299C: Income Tax Subtractions and Credits and IL – Schedule 1299-C: Prior Year Tax Credits.
- Complete both screens.
- Click Save.
Further Information
For full details on Illinois tax subtractions, adoption credits, and business-related carryforward credits, visit the Illinois Department of Revenue – Individuals: https://tax.illinois.gov/individuals.html