Article: 50407
IL Schedule CR – Tax Paid to Other States Credit
This screen is used to calculate a credit for taxes paid to other states on income that is also taxed by Illinois.
- Residency Status:
- Check Nonresident of Illinois or Generate the IL-CR (Part-Year residents Only) as appropriate.
- You can also select Force the ILCR to print to include the form even if the system doesn’t automatically generate it
- Eligible States:
- If you paid income tax to Iowa, Kentucky, Michigan, or Wisconsin, check the relevant box to claim the credit.
- Total Sales and Taxes Paid:
- Enter Total sales inside Illinois to correctly allocate your income.
- The Total amount of income tax paid to other states on Illinois base income field is an override field (highlighted in green) and should only be used if you have confirmed the correct value. Incorrect use may result in miscalculation of your return.
IL CR Worksheet for Schedule M – Other Additions and Subtractions
This worksheet supports Schedule CR by accounting for specific additions and subtractions that affect Illinois tax but not the other state’s return. Fields highlighted in green are override fields and should only be filled in if the system has not populated them correctly on your PDF.
Additions for Schedule CR line 35
- Distributive share of additions received from a partnership, S corporation, trusts, and estates (Schedules K-1-P and K-1-T)
- Lloyd’s plan of operations loss (Form IL-1065, if included in AGI)
- Any amount reported on Form IL-4562 from non-Illinois property
- Business expense recapture for previously reported income/assets
- Recapture of deductions for contributions to Illinois college savings and ABLE plans transferred to an out-of-state plan
- Business amounts on Form IL-4562 related to the Student-Assistance Contribution Credit
Subtractions for Schedule CR line 39
- “Bright Start” or “Bright Directions” College Savings Plan and College Illinois Prepaid Tuition Program contributions
- Restoration of amounts held under claim of right (Schedule M, Line 15)
- Contributions to a job training project (Schedule M, Line 16)
- Contributions to a qualified Illinois ABLE account (Schedule M, Line 20)
Additional Subtractions from Column A / Schedule M Line 39:
- August 1, 1969, valuation limitation
- River edge redevelopment zone and high impact business dividend subtraction
- Ridesharing money and other benefits
- Payment of life insurance, endowment, or annuity benefits
- Lloyd’s plan of operations income (Form IL-1065)
- Illinois Pre-Need Cemetery Sales Act trust income
- Education loan repayments to primary care physicians
- Reparations or other amounts received as a victim of persecution by Nazi Germany
- Interest from obligations of Illinois state and local government
- Your child’s interest income reported on U.S. Form 8814
- Military pay
- U.S. government obligations
- Distributive share of subtractions from a partnership, S corporation, trust, or estate
- Expenses of federally tax-exempt income and federal credits
- Special Depreciation subtraction
- Recovery of items previously deducted on U.S. 1040 Schedule A
- Non-U.S. bond interest
- Railroad unemployment
- Disallowed deductions under IRC Section 280E for cannabis businesses
- Amounts awarded from a judgment or settlement for fertility fraud or donor fertility fraud
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 IL – Schedule CR: Tax Paid to Other States Credit or IL – CR Worksheet for Schedule M: Other Additions and Subtractions.
- Complete the screen.
- Click Save.
Further Information
For more on Illinois’ treatment of income taxed by other states and Schedule CR credit eligibility, visit the Illinois Department of Revenue – Individuals: https://tax.illinois.gov/individuals.html