Instructions for Form IL-1041 — Fiduciary Income & Replacement Tax Return

Illinois Department of Revenue
IL-1041 Instructions 2025
Use for tax year ending on or after
December 31, 2025, and before
December 31, 2026.
Printed by the authority of the state of Illinois - electronic only - one copy.
What's New?

Income Tax Credits -- Information about income tax credits can be found in Schedule 1299-I.
- Gains and losses from sales or exchanges of shares in Subchapter S corporations or from interest in partnerships, other than investment partnerships, are attributable to Illinois if the pass-through entity is taxable in Illinois.
Schedule D, Beneficiary Information, Section B, Line H amounts cannot be negative.
The Illinois Income Tax Act was amended to remove the expiration date for the pass-through entity tax.

Table of Contents
What's New? 1
General Information 1
Specific Instructions 9
Illinois Schedule D Instructions 19
Appendix A - Extension Tax Payment Worksheet 23
Appendix B - Tax Prepayment Worksheets 24

General Information

Who must file Form IL-1041?
You must file Form IL-1041 if you are a fiduciary of a trust or an estate, and the trust or the estate

has net income or loss as defined under the Illinois Income Tax Act (IITA), regardless of any deduction for distributions to beneficiaries; or
is a resident of Illinois and files, or is required to file, a federal income tax return (regardless of net income or loss). (See "When is nonbusiness income allocable to Illinois?" to help you complete your Form IL-1041); or
is a nonresident of Illinois but received income from Illinois sources which was not reported as pass-through withholding on Form IL-1120-ST, Small Business Corporation Replacement Tax Return; Form IL-1065, Partnership Replacement Tax Return; or Form IL-1041, Fiduciary Income and Replacement Tax Return. You must also file Illinois Schedule NR (Form IL-1041), Nonresident Computation of Fiduciary Income, to determine the income that is taxed by Illinois during the tax year. For more information, see the current Illinois Schedule NR (Form IL-1041).

Note: "Grantor" trusts are not required to file Form IL-1041. Estates do not pay replacement tax.
If the trust or estate is a charitable organization exempt from federal income tax by reason of Internal Revenue Code (IRC) Section 501(a), it is not required to file Form IL-1041. However, unrelated business taxable income, as determined under IRC Section 512, is subject to tax (without any deduction for the Illinois income tax) and must be reported on Form IL-990-T, Exempt Organization Income and Replacement Tax Return, instead of Form IL-1041. For more information, see Form IL-990-T Instructions.
What forms must I use?
In general, you must obtain and use forms prescribed by the Illinois Department of Revenue (IDOR). Separate statements not on forms provided or approved by IDOR will not be accepted and you will be asked for appropriate documentation. Failure to comply with this requirement may result in failure to file penalties, a delay in the processing of your return, or a delay in the generation of any overpayment. Additionally, failure to submit appropriate documentation when requested may result in a referral to our Audit Bureau for compliance action.
Trusts and Estates must complete Form IL-1041. Do not send a computer printout with line numbers and dollar amounts attached to a blank copy of the return. Computer generated printouts are not acceptable, even if they are in the same format as IDOR's forms. Computer generated forms from an IDOR-approved software developer are acceptable.
Note: 2025 Form IL-1041 is for tax year ending on or after December 31, 2025, and ending before December 31, 2026. For tax year ending on or after December 31, 2024 and before December 31, 2025, use the 2024 form. Using the wrong form will delay the processing of your return.

How do I register my business?
If you are required to file Form IL-1041, you should register with IDOR. You may register

online with MyTax Illinois, our free online account management program for taxpayers;
by completing Form REG-1, Illinois Business Registration Application, and mailing it to the address on the form; or
by visiting a regional office.

Visit our website at tax.illinois.gov for more information.
Registering with IDOR prior to filing your return ensures that your tax returns are accurately processed.
Your identification numbers as an Illinois business taxpayer are your federal employer identification number (FEIN) and your Illinois account number.
When should I file?
Your Illinois filing due date is the same as your federal filing due date. In general, Form IL-1041 is due on or before the 15th day of the 4th month following the close of the tax year.
Automatic six-month extension — We grant you an automatic six-month extension of time to file your fiduciary tax return.
The automatic extension of time to file is granted whether or not you request it. You are not required to file a form in order to obtain this automatic extension. If you expect tax to be due, you must pay any tentative tax due, by the original due date of the return, in order to avoid interest and penalty on tax not paid by that date. To pay any tax due by the original due date of your return:

visit tax.illinois.gov, for information about ACH credit,
pay using mytax.illinois.gov, or
mail Form IL-1041-V, Payment Voucher for Fiduciary Income and Replacement Tax, using the address on the form.

If an unpaid liability is disclosed when you file your return, then you may owe penalty and interest charges in addition to the tax.
See the "What are the penalties and interest?" section on the next page. An extension of time to file your Form IL-1041 is not an extension of time for payment of Illinois tax.
Additional extensions beyond the automatic extension period — We will grant an extension of more than six months only if an extension is granted by the Internal Revenue Service (IRS) beyond the date of the Illinois automatic extension. Your additional Illinois extension will be for the length of time approved by the IRS. You must attach a copy of the approved federal extension to your Form IL-1041.
When should I pay?
Payment of tax — You must pay your Illinois Income and Replacement Tax and pass-through withholding reported on behalf of your beneficiaries in full on or before the original due date of the return. Failure to pay the tax due on or before the original due date of the return may result in penalty and interest. This payment date applies even though an automatic extension for filing the return has been granted. All payments must be made using Form IL-1041-V, Payment Voucher for Fiduciary Income and Replacement Tax.
Estimated tax payments — For state purposes, trusts and estates are not required to make estimated payments, although they may be required to make federal estimated payments.
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 Form IL-1041-V. See Appendix A for more information.
Voluntary Prepayments - You may make voluntary prepayments of your own tax liability as well as make pass-through withholding prepayments on behalf of your beneficiaries using Form IL-1041-V. See Appendix B for more information.
We encourage you to make your payments electronically using MyTax Illinois or Modernized E-File (MeF) systems, or you may use Form EFT-1, Authorization Agreement for Certain Electronic Payments, to set up an ACH credit or phone debit transaction.
These 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 Form IL-1041-V. You must use one of our electronic payment options if the IDOR has notified you that you are required to make payments electronically.
We will apply each payment to the earliest due date until that liability is paid, unless you provide specific instructions to apply it to another period. You may also be assessed a bad check penalty if your remittance is not honored by your financial institution.
Who should sign the return?
Your Form IL-1041 must be signed by the fiduciary of the trust or estate. If there are two or more joint fiduciaries, the signature of one will comply with the requirements of the IITA. The signature verifies by written declaration (and under penalties of perjury) that the signing fiduciary has personally examined the return and the return is true, correct, and complete. The fact that a fiduciary's name is signed to a return is prima facie evidence that the fiduciary is authorized to sign the return on behalf of the trust or estate.

Any person paid to prepare the return (other than a fiduciary of the trust or estate, or a regular, full-time employee of the taxpayer, such as a clerk, secretary, or bookkeeper) must provide a signature, date the return, enter the preparer tax identification number (PTIN) issued to them by the Internal Revenue Service, and provide their firm's name, FEIN, address, and phone number.
Note: If your return is not signed, any overpayment of tax is considered forfeited if, after notice and demand for signature, you fail to provide a signature within three years from the date your return was filed.
What are the penalties and interest?
Penalties — You will owe

a late-filing penalty if you do not file a processable return by the extended due date;
a late-payment penalty if you do not pay the tax you owe by the original due date of the return;
a bad check penalty if your remittance is not honored by your financial institution;
a cost of collection fee if you do not pay the amount you owe within 30 days of the date printed on your bill.

Interest — Interest is calculated on tax from the day after the original due date of your return through the date you pay the tax.
We will bill you for penalties and interest. For more information about penalties and interest, see Publication 103, Penalties and Interest for Illinois Taxes.
What if I am discontinuing my business?
Terminated — If you are the fiduciary of a trust or estate that has terminated during any tax year, you are still required to file the tax return. Also, we will pursue the assessment and collection of taxes if

the trust or estate was liable for income and replacement tax for that or any previous tax period; or,
the beneficiaries had income allocable to Illinois and were liable for income and replacement tax for that or any previous tax period, due to a distribution from the trust or estate.

Sales or transfers — If you are a fiduciary that, outside the usual course of business, sells or transfers the major part of any one or more of

the stock of goods which you are in the business of selling,
the furniture or fixtures of your business,
the machinery and equipment of your business, or
the real property of your business, you or the purchaser must complete and send us Form CBS-1, Notice of Sale, Purchase, or Transfer of Business Assets, no later than 10 business days prior to the date the sale takes place. Send this form, along with copies of the sales contract and financing agreement, to:

ILLINOIS DEPARTMENT OF REVENUE BULK SALES UNIT

PO BOX 19035
SPRINGFIELD IL 62794-9035 or
REV.BulkSales@illinois.gov
Request for prompt determination — You may make a request for prompt determination of liability, in accordance with IITA 35 ILCS 5/905(i), if you are an estate that has terminated. A completed tax return must be on file with us before you can submit a request for prompt determination. Do not submit your return and request at the same time. Mail your initial return to the address indicated on the form. You should allow 12 weeks for processing. If your request is properly made, the expiration of the statute of limitations (absent fraud) will not extend beyond 18 months from the date of your request. Mail your request and a copy of your previously submitted return to:

ILLINOIS DEPARTMENT OF REVENUE

PO BOX 19044
SPRINGFIELD IL 62794-9044
Note: The procedure described above does not apply to 11 U.S.C. Section 505 Determination of Tax Liability requests.
What if I need to correct or change my return?
Do not file another Form IL-1041 with "amended" figures to change your originally filed Form IL-1041. If you need to correct or change your return after it has been filed, you must file Form IL-1041-X, Amended Fiduciary Income and Replacement Tax Return. Returns filed before the extended due date of the return are treated as your original return for all purposes. For more information, see Form IL-1041-X Instructions.
You should file Form IL-1041-X only after you have filed a processable Illinois Income Tax return. You must file a separate Form IL-1041-X for each tax year you wish to change.

State changes only — File Form IL-1041-X promptly if you discover an error on your Illinois return that does not relate to an error on your federal return but rather was caused by

a mistake in transferring information from your federal return to your Illinois return;
failing to report or misreporting to Illinois an item that has no effect on your federal return; or
a mistake in another state's tax return that affects the computation of your Illinois tax liability.

If you are claiming an overpayment, Form IL-1041-X must be filed within 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, whichever is latest.
Federal changes only — File Form IL-1041-X if you have filed an amended federal return or if you have been notified by the IRS that they have made changes to your return. This includes any change in your federal income tax liability, any tax credit, or the computation of your federal taxable income as reported for federal income tax purposes, if the change affects any item entering into the computation of net income, net loss, or any credit for any year under the IITA. You must file Form IL-1041-X no later than 120 days after the federal changes have been agreed to or finally determined to avoid a late-payment penalty.
If your federal change decreases the tax due to Illinois and you are entitled to a refund or credit carryforward, you must file Form IL-1041-X within two years plus 120 days of federal finalization.
Attach a copy of federal finalization or proof of acceptance from the IRS along with a copy of your amended federal form, if applicable, to your Form IL-1041-X. Examples of federal finalization include a copy of one or more of the following items:

your federal refund check,
your audit report from the IRS, or
your federal transcript verifying your federal taxable income.

Note: For amended tax returns filed on or after January 1, 2024, a late payment penalty will be assessed for any amended return not filed and the resulting liability not paid within 120 days of the federal change. See 35 ILCS 735/3-3(b-25) for more information.
What records must I keep?
You must maintain books and records to substantiate any information reported on your Form IL-1041. Your books and records must be available for inspection by our authorized agents and employees.
Do IDOR and the IRS exchange income tax information?
IDOR and the IRS exchange income tax information for the purpose of verifying the accuracy of information reported on federal and Illinois tax returns. All amounts you report on Form IL-1041 are subject to verification and audit.
Should I round?
You must round the dollar amounts on Form IL-1041 and accompanying schedules to whole-dollar amounts. To do this, you should drop any amount less than 50 cents and increase any amount of 50 cents or more to the next higher dollar.
What if I have an Illinois net loss deduction (NLD)?
An Illinois net loss deduction (NLD) can be used to reduce the base income allocable to Illinois only if the loss year return has been filed and to the extent the loss was not used to offset income from any other tax year. Use Schedule NLD, Illinois Net Loss Deduction, to determine any NLD.
To determine your "Illinois net loss" start with federal taxable income and apply all addition and subtraction modifications and all allocation and apportionment provisions.
In order to have any available NLD applied to your return, you must claim the deduction on Step 4, Line 30. See the specific instructions for Step 4, Line 30.
If you have an Illinois net loss for this tax year, you must file Form IL-1041 reporting the loss in order to carry the loss forward to another year.
If corrections have been made to the loss amount (e.g., federal audit or amended return), you must report the corrected amount when you file.
Note: Ensure you have filed returns for all periods in which you were required to file an Illinois return. Unfiled returns may result in disallowed losses, processing delays, and further correspondence from IDOR.
If you need more information about Illinois NLDs see the Schedule NLD Instructions or 86 Ill. Adm. Code Sections 100.2050 and 100.2300 through 100.2330.
What are the limitations of the Illinois NLD?
For tax years ending on or after December 31, 2021, Illinois net losses cannot be carried back and can only be carried forward for 20 tax years.
For tax years ending on or after December 31, 2003, and before December 31, 2021, Illinois net losses can no longer be carried back, and can only be carried forward for 12 years. However, the carryover period of any net loss that has not expired as of November 16, 2021, shall be extended from 12 years to 20 years.

For tax years ending on or after December 31, 1999, and before December 31, 2003, all Illinois net losses must be carried back two years (unless an election to only carryforward is made) then forward 20 years. The election to carry a loss forward only was made by checking the appropriate box on the original or amended loss-year return, whichever showed the loss first.
Once the election was made to forgo the Illinois carryback provision, the election was irrevocable.
Illinois net losses in tax years ending before December 31, 1999, are allowed as a carryback or carryforward deduction only in the manner allowed under IRC Section 172, including, for example, the 10-year carryback allowed to banks for bad debt losses.
The following are the carryback and carryforward years generally allowed for Illinois net losses in tax years ending before
December 31, 1999. Illinois net losses in tax years beginning

after August 5, 1997, and ending before December 31, 1999, must be carried back two years, then forward 20 years.
on or before August 5, 1997, must be carried back three years, then forward 15 years.

Note: For tax years ending on or after December 31, 1996, and before December 31, 2003, you may have made the election to forgo any of the previously mentioned Illinois NLD carryback periods by checking the appropriate box on your loss year return.
This election must have been made by the extended due date of your return and once made was irrevocable for that tax year.
In addition, the special carryover periods in IRC Section 172, as in effect for a particular tax year, would apply to losses incurred in that year. For example, a "specified liability loss" incurred in 1998 may be carried back 10 years under IRC Section 172(b)(1)(c).
Also, no limitations under IRC Section 382 or the separate return limitation year provisions of the federal consolidated return regulations apply to any NLD carryover.
What if I have a discharge of indebtedness?
If you had discharge of indebtedness income for a taxable year ending on or after December 31, 2008, and all or a portion of this income was excluded from your federal gross income due to bankruptcy or insolvency, then you may be required to reduce either or both (i) the net operating loss incurred in the taxable year of the discharge, and (ii) any net operating loss carryovers to the taxable year of the discharge. If you were required to reduce a federal net operating loss in the year of the discharge, you may have been required to reduce any Illinois net loss you incurred for the same year. This reduction is made on the Illinois income tax return you filed for the loss year using the Loss Reduction Worksheet on Page 14 of these instructions. If you are a corporation (other than an S corporation) or trust and you were required to reduce or eliminate a federal net operating loss carryover because you had discharge of indebtedness income, you may be required to reduce or eliminate your Illinois net operating loss carryovers. This reduction is calculated on the Discharge of Indebtedness Worksheet on Schedule NLD. Attach a copy of your federal Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, to your return. For more information, see 86 Ill. Adm. Code Section 100.2310(c).
What is the standard exemption?
The standard exemption is $1,000. If you have a change in your tax year end, and the result is a tax period of less than 12 months, the standard exemption is prorated based on the number of days in the short tax year. However, if this is your first or final return, you are allowed to use the full-year standard exemption even if it is a short tax year. If you are a nonresident, you must use Schedule NR (Form IL-1041) to compute your exemption allowance. If you need further information, see 35 ILCS 5/401(b).
Note: For tax years beginning on or after January 1, 2017, the standard exemption may not be claimed if the taxpayer's adjusted gross income for the taxable year is greater than $250,000. See specific instructions for more information.
What attachments do I need?
When filing your return there are certain types of income items and subtraction modifications that require the attachment of Illinois or federal forms and schedules. Breakdowns, statements, and other documentation may also be required. Instructions for these attachments appear throughout the specific instructions for completing your return.
Note: All Illinois forms and schedules include an "IL Attachment No." in the upper right corner of the form. Required attachments should be ordered numerically behind the tax return, as indicated by the IL Attachment No. Failure to attach forms and schedules in the proper order may result in processing delays.
Required copies of documentation from your federal return or other sources should be attached behind the completed Illinois return.
You must attach a copy of your federal Form 1041, Pages 1 through 3, to your Illinois return if you are required to file federally.
Schedule D, Beneficiary Information, must be completed and attached to all Form IL-1041 filings.
If you are required to attach any Schedule(s) K-1-T, Beneficiary's Share of Income and Deductions, only attach Schedule(s) K-1-T you received which lists your name and FEIN in Step 2 of Schedule K-1-T. Do not attach copies of Schedule(s) K-1-T you issued and which lists your name and FEIN in Step 1 of Schedule K-1-T.

Note: When filing your Form IL-1041 include only forms and schedules required to support your return. Send correspondence separately to:

ILLINOIS DEPARTMENT OF REVENUE TAXPAYER CORRESPONDENCE

PO BOX 19044
SPRINGFIELD IL 62794-9044
Definitions to help you complete your Form IL-1041.
Resident means

an individual who is present in Illinois for other than a temporary or transitory purpose;
an individual who is absent from Illinois for a temporary or transitory purpose but who is domiciled in Illinois;
the estate of a decedent who at his or her death was domiciled in Illinois;
a trust created by a will of a decedent who at his or her death was domiciled in Illinois; or
an irrevocable trust, whose grantor was domiciled in Illinois at the time the trust became irrevocable. For purposes of this definition, a trust is irrevocable to the extent that the grantor is not treated as the owner of the trust under IRC Sections 671 through 678. For a more detailed explanation of "domicile" and "resident," see Form IL-1040 Instructions, Illinois Individual Income Tax Return, General Information.

Nonresident means a person who is not a resident of Illinois, as defined previously.
Note: In the following definitions, all references to "income" include losses.
Illinois base income is your federal taxable income, plus any additions on Lines 2 through 10, less any subtractions on Line 25. See specific instructions for Steps 2 and 3.
Business income means all income (other than compensation) that may be apportioned by formula among the states in which you are doing business without violating the Constitution of the United States. All income of a trust or estate is business income unless it is clearly attributable to only one state and is earned or received through activities totally unrelated to any business you are conducting in more than one state. Business income is net of all deductions attributable to that income.
Nonbusiness income means all income other than business income or compensation. For more information about the different types of nonbusiness income, see Illinois Schedule NB Instructions.
A pass-through entity is any entity treated as a partnership, subchapter S corporation, or trust for federal income tax purposes.
Pass-through entity income is the income that any partnership, subchapter S corporation, or trust passes through to its partners, shareholders, or beneficiaries.
PTE tax is an amount equal to 4.95 percent (.0495) of the taxpayer's calculated net income for the tax year paid by a partnership (other than a publicly traded partnership under Section 7704 of the Internal Revenue Code) or subchapter S corporation who elects to pay the tax for taxable years ending on or after December 31, 2021.
PTE tax credit is the distributive share of the credit allowed as a result of a partnership or S corporation having elected to pay the PTE tax.
PTE tax credit

distributed to your beneficiaries is reported on Schedule K-1-T, Line 50.
retained by the fiduciary is reported on Form IL-1041, Line 55d.

Pass-through withholding is the amount required to be reported and paid by the pass-through entity on behalf of its nonresident partners, shareholders, and beneficiaries

who have not submitted Form IL-1000-E, Certificate of Exemption for Pass-through Withholding, to the pass-through entity, and
who receive business and nonbusiness income from the pass-through entity.

Pass-through withholding is

reported to your beneficiaries on the Schedule K-1-T you send to them,
reported to IDOR on your Form IL-1041 and Illinois Schedule D, and
paid with your return or voluntarily prepaid with Form IL-1041-V.

Note: If any of your beneficiaries are pass-through entities themselves, they are required to report and pay pass-through withholding on behalf of their own nonresident partners, shareholders, or beneficiaries on the income you passed through. Your beneficiaries may claim a credit on their Illinois Income Tax return for pass-through withholding you reported and paid on their behalf.
Trusts can both make and receive pass-through withholding. Estates can receive pass-through withholding.

Pass-through withholding you owe on behalf of your beneficiaries is a payment of pass-through withholding you make on behalf of your nonresident beneficiaries who have not submitted Form IL-1000-E to you. This amount will be reported on Form IL-1041, Line 53.

• Pass-through withholding reported to you is a credit for pass-through withholding you receive on Schedules K-1-P and K-1-T as a partner, shareholder, or beneficiary of a pass-through entity. This amount will be reported on Form IL-1041, Line 55c.
If you are a nonresident and the pass-through withholding reported to you satisfies your Illinois Income Tax liability, you are not required to file an Illinois Income Tax return. If you had Illinois income from other sources and the pass-through withholding made on your behalf does not cover your liability, you must file a return to report the tax on all of your Illinois income and claim a credit for pass-through withholding made on your behalf.
All residents and pass-through entities must file their own annual Illinois Income Tax return to claim a credit for any pass-through withholding reported to them.
Note: Beginning with tax years ending on or after December 31, 2023, investment partnerships are required to withhold an amount for their nonresident partners. Investment partnerships will use the pass-through withholding line of Schedule K-1-P (Step 7, Line 55) to report investment partnership withholding credit. Trusts and estates will treat the investment partnership withholding credit the same as the pass-through withholding credit. See Schedule K-1-P(2) for more information.
When is business income allocable to Illinois?
If the trust or estate is a resident, all income received, regardless of source, is allocable to Illinois.
If the trust or estate is a nonresident and business income is derived

wholly inside Illinois, the entire amount of business income is allocable to Illinois;
wholly outside of Illinois, none of the business income is allocable to Illinois;
inside and outside of Illinois, complete Illinois Schedule NR (Form IL-1041), Step 6. See the instructions for Illinois Schedule NR (Form IL-1041), Step 6.
from subchapter S corporations, partnerships, and other fiduciaries, the business income may be allocable to Illinois. See the Illinois Schedule(s) K-1-P, furnished by the subchapter S corporation or partnership or the Illinois Schedule(s) K-1-T furnished by the other fiduciary to determine what income is allocable to Illinois.

When is nonbusiness income allocable to Illinois?
If the trust or estate is a resident, all nonbusiness income is allocable to Illinois.
If the trust or estate is a nonresident, items of income and deduction which constitute nonbusiness income are allocable to Illinois according to the following rules:
• Interest and dividend income received by a nonresident trust or estate is not allocable to Illinois.
• Net rents and royalties
Real property — Rents and royalties from real property are allocable to Illinois if the property is located in Illinois.
Tangible personal property — Rents and royalties from tangible personal property are allocable to Illinois to the extent the property is used in Illinois. The extent of use of tangible personal property in a state is determined by multiplying the rents and royalties derived from the property by a fraction, in which the numerator is the number of days the property is located in the state during the rental and royalty period in the tax year and the denominator is the total number of days during all rental or royalty periods in the tax year.
• Patent and copyright royalties are allocable to Illinois to the extent the patent or copyright is used in Illinois.
A patent is used in Illinois to the extent that it is employed in production, fabrication, manufacturing, or other processing in Illinois or to the extent that a patented product is produced in Illinois.
A copyright is used in Illinois to the extent that printing or other publication originates in Illinois.

Gains and losses from sales or exchanges of real or tangible property are in Illinois if the property is located in Illinois at the time of the sale or exchange. Gains or losses from the sale or exchange of intangible personal property are not allocable to Illinois. Gains or losses from sales or exchanges of shares or interests in a pass-through entity are allocable to Illinois if the pass-through entity is taxable in Illinois.
Income from subchapter S corporations, partnerships and other fiduciaries paid to the trust or estate is allocable to Illinois as if the trust or estate received it directly. See the Illinois Schedule(s) K-1-P furnished by the subchapter S corporation or partnership or the Illinois Schedule(s) K-1-T furnished by the other fiduciary to determine what income is allocable to Illinois.
Illinois state lottery winnings, and proceeds from sales or other transfers of rights to lottery winnings received by a nonresident fiduciary are allocable to Illinois.
Gross receipts of winnings from sports wagering conducted in accordance with the Sports Wagering Act for taxable years ending on or after December 31, 2021, are allocable to Illinois.

• Other unspecified items of income or deduction of a nonresident taxpayer are not allocable to Illinois.

What does taxable in other states mean?
Taxable in other states means you are subject to and actually pay "tax" in another state. "Tax" means net income tax, franchise tax measured by net income, or franchise tax for the privilege of doing business. You are considered taxable in another state if that state has jurisdiction to subject you to a net income tax, even though that state does not impose such a tax. This definition is for purposes of allocating nonbusiness income and apportioning business income inside or outside Illinois.
What are throwback sales and throw-out sales?
Throwback sales are items shipped from an office, store, warehouse, factory, or other place of storage in Illinois to a purchaser in a state or foreign location where the taxpayer is not taxable.
For business income tax purposes, throwback sales should be included in both the sales everywhere and Illinois sales figures when determining apportionment.
Throw-out sales are sales of services which are "thrown out" because the taxpayer is not taxable in the state in which the services are received. Throw-out sales are excluded from both the sales everywhere and Illinois sales figures when determining apportionment.
See 86 Ill. Adm. Code Section 100.3370 and 86 Ill. Adm. Code Section 100.3380 for more information.
What is the fiduciary's share or beneficiary's share of income?
The fiduciary's share of an item of income or deduction is that amount required to be taken into account in computing fiduciary taxable income for federal income tax purposes for the tax year and is not paid, credited, or required to be distributed to the beneficiaries of the trust or estate for that year. The fiduciary's share of each of the addition and subtraction items required under the IITA is that part of each item that relates and is attributable to the fiduciary's share of the items of income and deduction.
The beneficiary's share of each of the items is the amount that was properly paid, credited, or required to be distributed to the beneficiary for the tax year. The items of income and deduction and the additions and subtractions that are deemed to have been paid, credited, or distributed must be taken into account by the beneficiaries in proportion to their respective shares of the distributable net income.
When must I use Illinois Schedules K-1-T, K-1-T(3), and D?
You must use Illinois Schedule K-1-T to supply each beneficiary with that individual's or entity's share of the amounts reported on your federal and Illinois tax returns. For Illinois Income Tax purposes, you must give a completed Illinois Schedule K-1-T and a copy of the Illinois Schedule K-1-T(2), Beneficiary's Instructions, to each beneficiary. Do not file copies of Illinois Schedule K-1-T that you issued to your beneficiaries with your Form IL-1041. However, you must keep a copy of each Illinois Schedule K-1-T with your tax records. See Illinois Schedule K-1-T(1), Instructions for Trusts and Estates Completing Schedule K-1-T and Schedule K-1-T(3), for more information.
Trusts only - You must use Illinois Schedule K-1-T(3), Pass-through Withholding Calculation for Nonresident Members, to calculate the required tax you must report and pay on behalf of your nonresident beneficiaries who receive business or nonbusiness income from you. You must complete the schedule if you have business or nonbusiness income distributable to Illinois nonresident beneficiaries who have not provided you with Form IL-1000-E. You are required to complete Schedule K-1-T(3) for each such beneficiary and keep a copy of the completed schedule in your files. Do not submit Schedule K-1-T(3) to IDOR unless we request it from you. The information entered on this schedule will assist you in completing Illinois Schedule D. See Schedule K-1-T(1) for more information.
You must use Illinois Schedule D to supply us with a listing of your beneficiaries, certain items of income, and pass-through withholding you made on their behalf. You must complete all lines of Illinois Schedule D, as applicable, and file it with your
Form IL-1041.
What if the trust makes an accumulation or capital gain distribution?
If the trust makes an accumulation distribution or a capital gain distribution (both as defined in IRC Section 665), the portion of the distribution included in the income of a nonresident or part-year resident beneficiary (under IRC Sections 668 and 669) is taxable to the extent that the trust income was allocable to Illinois before distribution.
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 used to disclose the transaction to the IRS.

Mail the first copy of the federal disclosure statement to:

ILLINOIS DEPARTMENT OF REVENUE

PO BOX 19029
SPRINGFIELD IL 62794-9029

Attach the second copy to your Illinois Income Tax return for the tax year that the IRS disclosure was required. Mail the second copy and your Illinois Income Tax return to the address shown on your return. Do not mail the second copy and your Illinois Income Tax return to the address listed above.

What if I need additional assistance or forms?

For assistance, forms, or schedules, visit our website at tax.illinois.gov or scan the QR code provided.
Write us at:

ILLINOIS DEPARTMENT OF REVENUE

PO BOX 19001
SPRINGFIELD IL 62794-9001

Call 1 800 732-8866 or 217 782-3336 (TTY at 1 800 544-5304).
Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. (Springfield office) and 8:30 a.m. to 5:00 p.m. (all other offices), Monday through Friday.

Where should I file?

If a payment is enclosed with your return, mail your Form IL-1041 to

ILLINOIS DEPARTMENT OF REVENUE

PO BOX 19053
SPRINGFIELD IL 62794-9053

If a payment is not enclosed, mail your Form IL-1041 to:

ILLINOIS DEPARTMENT OF REVENUE

PO BOX 19009
SPRINGFIELD IL 62794-9009

Specific Instructions

Specific instructions for most of the lines are provided on the following pages. If a specific line is not referenced, follow the instructions on the form.

Step 1 — Identify your fiduciary

A — All taxpayers: Type or print your legal business name. If you have a name change from last year, check the corresponding box.
B — Type or print your mailing address.
Note: Any related correspondence issued by IDOR will be mailed to the address entered on Step 1, Line B.
C — Indicate if you are a trust or an estate by checking the appropriate box.
Note: If you are filing a qualified revocable trust who has made a federal Section 645 election, you must mark the estate box.
D — Indicate if you are an Electing Small Business Trust (ESBT), an individual bankruptcy estate, a complex trust or estate without distributions, or a grantor trust by checking the appropriate box or boxes (you may check more than one).
Note: You may only indicate you are an

ESBT or grantor trust if you checked the "Trust" box on Step 1, Line C; or
individual bankruptcy estate if you checked the "Estate" box on Step 1, Line C.

Note: For individual bankruptcy estates, Illinois follows the federal filing procedures. You should complete Form IL-1040, Individual Income Tax Return, and carry the tax amount to Step 6 of Form IL-1041 and check the individual bankruptcy estate box. On the top of Form IL-1040, write "Individual Bankruptcy Estate. Do not detach." Attach
Form IL-1040 to the back of Form IL-1041.
E — If this is your first or final return, check the appropriate box and the box on Line 58 if you have a credit carryforward on your final return.
F — Indicate your method of accounting by checking the appropriate box. You must use the same accounting method (e.g., cash or accrual) and tax year that you used for federal income tax purposes.
G — Enter your entire federal employer identification number (FEIN). A partial FEIN will delay the processing of your return.
H — If you are required to disclose reportable transactions and you have attached federal Form 8886, check the box. See "What if I participated in a reportable transaction?" for more information.
I — If your residency is not in Illinois, check the box and attach a completed Illinois Schedule NR (Form IL-1041) to your tax return.
J — If you earned or can carryforward credits on Illinois Schedule 1299-D, Income Tax Credits (for corporations and fiduciaries), check the box and attach Illinois Schedule 1299-D and any other required support listed on Schedule 1299-D to your tax return, even if you are unable to use any of the credits in this tax year.

K — If you are claiming a special depreciation addition or subtraction modifications on Form IL-1041, check the box and attach Form IL-4562, Special Depreciation, to your tax return.
L — If you are claiming other addition or subtraction modifications on Form IL-1041, check the box and attach Schedule M, Other Additions and Subtractions (for businesses), to your tax return.
M — If you are claiming related-party expense modifications on your Form IL-1041, check the box and attach Schedule 80/20, Related-Party Expenses, to your tax return.
N — Check the box and attach a detailed statement if you must adjust your loss or loss carryover due to Discharge of Indebtedness. For more information, see the instructions for Line 28, the Loss Reduction Worksheet on Page 14 of these instructions, Schedule NLD, and Schedule NLD Instructions.
O — Check this box if you are a 52/53-week filer.
A 52/53-week 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.
Note: You must complete an IDOR-issued or previously approved Form IL-1041 and corresponding schedules. Do not send a computer printout or spreadsheets with line numbers and dollar amounts attached to a blank copy of the return.

Step 2 — Figure your income or loss

Line 1 — Enter the amount from federal Form 1041, Line 23. Attach a copy of your federal return.
Note: Do not include any capital gains on the lump-sum distribution from a retirement plan that you reported on your federal Form 4972, instead of on Line 8 of your federal Form 1041.
Note: Under federal law, Paycheck Protection Program (PPP) loan forgiveness is not considered taxable income and the business expenses covered by the PPP loan proceeds are deductible business expenses. Currently, Illinois tax law has no addition modification to change this; therefore, the same treatment flows through to the Illinois return and is included as part of federal taxable income.
Line 2 through 10 — Do not enter negative amounts on Lines 2 through 10. If you are claiming over-accrued taxes, include them on Schedule M (for business), Line 24.
Line 2 — Enter the amount of net operating loss deduction from federal Form 1041, Line 15b.
Line 3 — If you are an Electing Small Business Trust (ESBT), and your net taxable income from subchapter S corporations is positive, enter that figure here. Also, you should include the amounts applicable from this trust in your addition and subtraction modifications. Attach a breakdown worksheet explaining each amount. If your net taxable income from subchapter S corporations is a loss, report it on Line 23.
Line 4 — Enter the exemption amount from your federal Form 1041, Line 21. If you are a qualified disability trust, enter $100 or the amount of your exemption, whichever is less.
Lines 5 through 10 - Addition Modifications — Any addition modification required in the computation of base income should be adjusted by any amount permanently set aside for charitable purposes pursuant to IRC Section 642(c).
Enter the addition modifications in Column A if the item is included in figuring your beneficiaries' income.
Enter the addition modifications in Column B if the item is included in figuring your income.
Line 5 — You must add back any amount of Illinois Income and Replacement taxes and surcharge that you deducted on your federal Form 1041 to arrive at your federal taxable income. You are not required to add back taxes from other states that you included as a federal deduction.
Line 6 — Enter the total of all amounts excluded from federal taxable income that were received or accrued as interest during the tax year.
Line 7 — Enter the addition amount calculated on Form IL-4562, Step 2, Line 4. For more information, see Form IL-4562 and Instructions. Attach Form IL-4562 to your Form IL-1041.
Note: The sum of the amounts reported in columns A and B of this line should match the total amount reported on Form IL-4562, Step 2, Line 4.
Line 8 — Enter the interest or intangible expenses, or insurance premiums paid to an affiliated company, to the extent these expenses exceed any taxable dividends you received from the affiliated company. To compute the amount of this addition, complete Step 2 of Illinois Schedule 80/20, and enter on Line 8 the total from Illinois Schedule 80/20, Step 2, Line 9. Attach
Illinois Schedule 80/20 to your Form IL-1041.
Note: The sum of the amounts reported in columns A and B of this line should match the total amount reported on Illinois Schedule 80/20, Step 2, Line 9.
Some interest and intangible expenses may be exempt from this add-back provision. See Illinois Schedule 80/20 Instructions for more information including definitions of "affiliated company," "intangible expenses," and "intangible assets."

Line 9 — If you are a beneficiary in another trust or estate, a partner in a partnership, or a shareholder in a subchapter S corporation, include your distributive share of additions received from the trust, estate, partnership, or subchapter S corporation on Schedules K-1-P or K-1-T. If you receive multiple schedules because you are a recipient from multiple entities, you should enter the combined total of Step 5, Column A, Lines 32 through 37, from all Illinois Schedules K-1-P you receive and Step 5, Column A, Lines 30 through 35, from all Illinois Schedules K-1-T you receive. Attach a copy of all
Illinois Schedules K-1-P and K-1-T to your Form IL-1041.
Note: The trust or estate is required to send you an Illinois Schedule K-1-T and Schedule K-1-T(2), Beneficiary's Instructions, and the partnership or subchapter S corporation is required to send you an Illinois Schedule K-1-P and Schedule K-1-P(2), Instructions for Partnerships and S Corporations Completing Schedule K-1-P, and Schedule K-1-P(3), specifically identifying your share of income.
Special Note: Include only additions reported to you on the Schedule(s) K-1-P or K-1-T you received from a pass-through entity in which you are an investing partner or shareholder or a beneficiary. Do not attach copies of Schedules K-1-T you issued to your beneficiaries. You should keep copies of these schedules in your records.
Line 10 — Enter the addition amount calculated on Illinois Schedule M, Step 2, Line 11. Attach a copy of Illinois Schedule M to your Form IL-1041.
Note: The sum of the amounts reported in columns A and B of this line should match the total amount reported on Illinois Schedule M, Step 2, Line 11.
The following are examples of items that must be added to taxable income and are included on the Illinois Schedule M.

Notes, bonds, debentures, or obligations issued by the Governments of Guam, American Samoa, Puerto Rico, the Northern Mariana Islands, or the Virgin Islands.
Lloyd's plan of operations loss if reported on your behalf on Form IL-1065, Partnership Replacement Tax Return, and included in your federal taxable income.
Nonresidents only: Business Expense Recapture - Deductions you claimed this year and in your two most recent tax years for expenses connected with income from an asset or activity which were reported as business income in prior years and as nonbusiness income on this return. This recapture should be allocated to the fiduciary to the extent the business expenses were allocated to the fiduciary in the year they were deducted. See Illinois Schedule NR (Form IL-1041) and Illinois Schedule NR (Form IL-1041) Instructions for more information.
Any other state's income tax deducted from federal taxable income, if a corresponding credit is claimed on Illinois Schedule CR (Form IL-1041), Credit for Tax Paid to Other States. Only add back the taxes for which you are claiming a credit.
The smaller of any capital loss on federal Form 1041, Line 4 that you may carryforward or any negative amount on federal Form 1041, Line 22.

Step 3 — Figure your base income or loss

Lines 13 through 25 - Subtraction Modifications — Do not enter negative amounts on Lines 13 through 25.
Any subtraction modification required in the computation of base income should be adjusted by any amount permanently set aside for charitable purposes pursuant to IRC Section 642(c).
Enter the subtraction modifications in Column A if the item is included in figuring your beneficiaries' income.
Enter the subtraction modifications in Column B if the item is included in figuring your income.
A double deduction is prohibited by IITA Section 203(g). You cannot deduct the same item more than once when figuring your subtractions.
Line 13 — Enter the amount from Illinois Schedule F (Form IL-1041), Gains from Sales or Exchanges of Property Acquired Before August 1, 1969, Line 18. Capital gain, or Section 1245 or 1250 gain, on property acquired before August 1, 1969, may be limited by the value of the property on August 1, 1969. See Illinois Schedule F for instructions. Attach Illinois Schedule F, and a copy of federal Schedule D (or federal Form 8949), federal Form 4797, and federal Form 6252, if filed.
Note: Do not enter an amount on Line 13a.
Line 14 — Enter the federally taxed portion of any qualified distribution received from

a qualified employee pension, profit sharing, stock bonus, or bond purchase plan, or from a government (including military) retirement or disability plan. Report only such distribution that was included in taxable income on federal Form 1041, Line 8.

Attach a copy of federal Form 1041, Page 1, and supporting schedule for Line 8.

an Individual Retirement Account (IRA), a self-employed retirement plan (SEP), or a 401(k) plan.
a lump-sum distribution of cash or property from a qualified plan (e.g., employer securities or retirement income, endowment or life insurance contracts). Report the total distribution treated as long-term capital gain shown on federal Schedule D plus any amount treated as ordinary income and included in federal Form 1041, Line 8. Attach a copy of federal Schedule D and federal Form 1041, Page 1, and supporting schedule for Line 8.
the redemption of U.S. Retirement Bonds. Attach a copy of federal Form 1041, Page 1, and supporting schedule for

Line 8.

gain on the sale or exchange of employer securities. Complete Form IL-4644, Gains from Sales of Employer's Securities Received from a Qualified Employee Benefit Plan, to compute the subtraction. Attach Form IL-4644 to your

Form IL-1041.
Note: Do not subtract any capital gains on the lump-sum distribution from a retirement plan that you reported on your federal Form 4972, rather than on federal Form 1041, Line 8. These amounts are excluded from your federal taxable income on Form IL-1041, Line 1, and cannot be subtracted.
Special Note: You must notify each beneficiary of his or her share of any amount included on Line 14, Column A, that is attributable to a capital gain distribution or to a gain realized on the disposition of employer securities. You must also advise the beneficiary that his or her share of any such amount is to be reported only if he or she is limiting capital gain on the disposition of property acquired before August 1, 1969, on Illinois Schedule F. If the beneficiary is an individual, he or she will include the amount on Illinois Schedule F (Form IL-1040), Line 13. If the beneficiary is a trust or estate, the fiduciary will include the amount on Illinois Schedule F (Form IL-1041), Line 14.
Line 15 — Enter the total interest received or accrued from U.S. Treasury bonds, notes, bills, federal agency obligations, and savings bonds that is included in your federal taxable income. You may not subtract anything that is not identified in Illinois Publication 101, Income Exempt from Tax. This amount is net of any bond premium amortization deducted federally.
Line 16 — Enter any retirement payments to retired partners that were received by the trust or estate and excluded in computing net earnings from self-employment by IRC Section 1402.
Note: You must attach Illinois Schedule 1299-B, River Edge Redevelopment Zone or Foreign Trade Zone (or sub-zone) Subtractions, to your Form IL-1041 if you have an amount on Lines 17 and 18.
Line 17 — Enter the River Edge Redevelopment Zone Dividend subtraction from Illinois Schedule 1299-B, Step 1, Line 3.
Line 18 — Enter the High Impact Business Dividend subtraction from Illinois Schedule 1299-B, Step 1, Line 6.
Line 19 — Enter the amount of any contribution made to a job training project established under the "Tax Increment Allocation Redevelopment Act," as amended. For further information, see 65 ILCS 5/11-74.4-1 et seq.
Line 20 — Enter the subtraction allowance from Form IL-4562, Step 3, Line 19. Attach Form IL-4562 to your Form IL-1041.
Note: The sum of the amounts reported in columns A and B of this line should match the total amount reported on Form IL-4562, Step 3, Line 19.
Line 21 — Enter the amount from Illinois Schedule 80/20, Step 4, Line 23. Attach Illinois Schedule 80/20 to your
Form IL-1041.
Note: The sum of the amounts reported in columns A and B of this line should match the total amount reported on Illinois Schedule 80/20, Step 4, Line 23.
You should use Illinois Schedule 80/20

if you added back interest paid to an affiliated company on Step 2, Line 8, you may subtract any interest received from that affiliated company during this tax year, up to the amount of your addition for interest expense paid to that company. Also, if you added back intangible expenses from a transaction with an affiliated company on Line 8, you may subtract any income you received during the tax year from similar transactions with the affiliated company, up to the amount of your addition for intangible expense for that company. To compute the amount of this subtraction, complete Illinois Schedule 80/20.
if you are an affiliated company, and you received interest or intangible income from someone who had to add back the interest and intangible expense on their Illinois Schedule 80/20, you may subtract your interest or intangible income from that person.

Line 22 — Enter your distributive share of subtractions passed through to you on Schedules K-1-P or K-1-T by a partnership, S corporation, trust, or estate that you were either a partner, a shareholder, or a beneficiary of. Do not include any amounts passed through that are reflected on Illinois Schedule 1299-B. Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1041.
Note: The partnership or the subchapter S corporation is required to send you an Illinois Schedule K-1-P and Schedule K-1-P(2) and the trust or estate is required to send you an Illinois Schedule K-1-T and Schedule K-1-T(2), specifically identifying your share of subtractions.
Special Note: Include only subtractions reported to you on the Schedule(s) K-1-P or K-1-T you received from a pass-through entity in which you are an investing partner or shareholder or a beneficiary. Do not attach copies of Schedules K-1-T you issued to your beneficiaries. You should keep copies of these schedules in your records.
Line 23 — If you are an ESBT, enter the amount of net taxable income if it is a loss passed through to you by subchapter S corporations. Also, you should include the amounts applicable from this trust in your addition and subtraction modifications.
Attach a breakdown worksheet explaining each amount. Net positive income from subchapter S corporations is reported on Line 3.
Note: Do not enter an amount on Line 23a.

Line 24 — Enter the subtraction amount calculated on Illinois Schedule M, Step 3, Line 40. Attach a copy of Illinois
Schedule M to your Form IL-1041.
Note: The sum of the amounts reported in columns A and B of this line should match the total amount reported on Illinois Schedule M, Step 3, Line 40.
You may not subtract anything that is not identified below, on Schedule M (for businesses), or in Illinois Publication 101. Subtractions allowed on Illinois Schedule M include:

notes, bonds, debentures, or obligations issued by the Governments of Guam, American Samoa, Puerto Rico, the Northern Mariana Islands, or the Virgin Islands, to the extent that you were required to add these amounts to your federal taxable income;
Lloyd's plan of operations income if reported on your behalf on Form IL-1065 and included in your federal taxable income;
the amount equal to the deduction used to compute the federal tax credit for restoration of amounts held under claim of right under IRC Section 1341;
the amounts disallowed as federal deductions or interest expenses under IRC Sections 171(a)(2), 265, or 280C;
reparations or other amounts received as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime that are included in your federal taxable income. Also include any reparations or other amounts received as an heir of such victim that are included in your federal taxable income;
any other income included on Step 2, Line 11, exempt from taxation by Illinois by reason of its Constitution or statutes or by the Constitution, treaties, or statutes of the United States. This amount is net of any bond premium amortization deducted federally.

Line 26 — Subtract Line 25 from Line 12. If you are a resident of Illinois enter this amount on Step 4, Line 27. The base income of a resident trust or estate is not subject to allocation or apportionment. The entire amount is allocated to Illinois under the provisions of the IITA. If you are a nonresident of Illinois, complete Illinois Schedule NR (Form IL-1041) before completing Step 4. Attach Illinois Schedule NR (Form IL-1041) to your Form IL-1041. For more information, see Illinois Schedule NR (Form IL-1041) Instructions.

Step 4 — Figure your net income

Line 27 — Follow the instructions on the form. If this amount is a loss, you may be allowed to carry it forward to other years as an Illinois net loss deduction (NLD).
Line 28 — If you were required to reduce the net operating loss reported on your federal Form 1041 because you excluded any discharge of indebtedness income from this tax year's gross income, then you may be required to reduce the net loss reported on Line 27. Use the Loss Reduction Worksheet on the next page to figure your loss reduction.
Note: Check the box in Step 1, Line N.
Attach a copy of your federal Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and a detailed statement, including the amounts and tax year, of the debt and reason for reduction to your Form IL-1041. For more information, see 86 Ill. Adm. Code Section 100.2310(c).
Note: If you also have Illinois net operating loss carryovers to the tax year of the debt cancellation, you may also be required to reduce these carryovers. See Schedule NLD and Schedule NLD Instructions for more information.
Line 29 — If you have a discharge of indebtedness adjustment on Line 28, add Lines 27 (a negative number) and 28 (a positive number), and enter the result here. This amount cannot be greater than zero.
If you do not have a discharge of indebtedness adjustment, enter zero on Line 28 and the amount from Line 27 on Line 29.
Line 30 — Enter your Illinois net loss deduction carryforward as determined from Illinois Schedule NLD, Step 1, Line 7, total box. Attach Illinois Schedule NLD to your Form IL-1041.
Line 31 — The standard exemption is $1,000. If you have a change in your tax year end, and the result is a tax period of less than 12 months, the standard exemption is prorated based on the number of days in the short tax year. However, if this is your first or final return, you are allowed to use the full-year standard exemption even if it is a short tax year. If you are a nonresident, you must use Schedule NR (Form IL-1041) to compute your exemption allowance.
This figure cannot be greater than "$1,000." The standard exemption is $0.00 if your adjusted gross income (AGI) is greater than $250,000. You should make the determination about your AGI based on AGI under IRC Section 67(e).

Step 5 — Figure your net replacement tax - For trusts only, estates go to Step 6

Line 35 — Enter your recapture of investment credits from Illinois Schedule 4255, Step 6, Column D, Line 22.
If you claimed any Illinois investment tax credit in a prior year on Form IL-477, and any of the property was disqualified within 48 months of being placed in service, you must use Illinois Schedule 4255 to compute the amount of recapture. Credit must be recaptured in the year the property became disqualified.
Line 37 — Enter the amount from Illinois Schedule CR (Form IL-1041), Step 5, Line 60. Attach Illinois Schedule CR and all required supporting documents to your Form IL-1041. For more information, see Illinois Schedule CR Instructions.

Line 38 — Enter the amount from Form IL-477, Step 1, Line 13. Attach Form IL-477 and any other required support listed on Form IL-477 to your Form IL-1041.
You may claim a replacement tax investment credit of .5 percent (.005) of the basis of qualified property placed in service in Illinois during the tax year.
An additional credit of up to .5 percent (.005) of the basis of qualified property is available if your Illinois base employment increased over the preceding year or if your business is new to Illinois. Excess credit may be carried forward for five years following the excess credit year. For more information, see Form IL-477 Instructions.

Step 6 — Figure your net income tax - For trusts and estates

Line 42 — Multiply Line 41 by 4.95 percent (.0495).
Line 43 — Enter the total of your recapture of investment credits from Illinois Schedule 4255, Step 6, Columns A, B, C, and E, Lines 22 and Step 7, Line 33. See Schedule 4255 Instructions for more information regarding the recapture of investment credits.
If you claimed an Illinois Enterprise Zone or River Edge Redevelopment Zone Investment Credit, High Impact Business Investment Credit, or Angel Investment Credit in a prior year on Illinois Schedule 1299-D, and any of the property becomes disqualified, you must use Illinois Schedule 4255 to compute the amount of recapture. Credit must be recaptured in the year in which the property became disqualified. For more information, see Illinois Schedule 4255.
Line 45 — Enter the amount from Illinois Schedule CR (Form IL-1041), Step 5, Line 59. Attach Illinois Schedule CR and all required supporting documents to your Form IL-1041. For more information, see Illinois Schedule CR Instructions.
Line 46 — Enter the amount from Illinois Schedule 1299-D, Step 2, Line 10. The total of all credits is limited to the total income tax shown on Line 44. Attach Illinois Schedule 1299-D and any other required support listed on Schedule 1299-D to your Form IL-1041. For more information, see Illinois Schedules 1299-D and 1299-I, Income Tax Credits Information and Worksheets.

Step 7 — Figure your refund or balance due

Line 51 — Compassionate Use of Medical Cannabis Program Act surcharge.
Definitions
Organization registrant means a corporation, partnership, trust, limited liability company (LLC), or other organization, that holds either a medical cannabis cultivation center registration issued by the Illinois Department of Agriculture or a medical cannabis dispensary registration issued by the Illinois Department of Financial and Professional Regulation.
Transactions subject to the surcharge means sales and exchanges of

capital assets;
depreciable business property;
real property used in the trade or business; and
Section 197 intangibles of an organization registrant.

What is the surcharge?
For each taxable year beginning or ending during the Compassionate Use of Medical Cannabis Program, a surcharge is imposed on all taxpayers on income arising from the transactions subject to the surcharge of an organization registrant under the Compassionate Use of Medical Cannabis Program Act.
The amount of the surcharge is equal to the amount of federal income tax liability for the taxable year attributable to the transactions subject to the surcharge.
Loss Reduction Worksheet
1 Enter the amount of the reduction to your federal net operating losses
See Federal Form 982. 1 __
2 Enter your income allocation ratio. See instructions. 2 __
3 Multiply the amount on Line 1 by Line 2. This is your reduction amount.
Enter the result here and on Form IL-1041, Line 28. 3 __
Line 1 — Follow the instructions in Line 1.
Line 2 — Your income allocation ratio is calculated by dividing the amount of debt cancellation income excluded from your gross income that would have been allocated or apportioned to Illinois under the IITA if it was not excluded by the total amount of debt cancellation income excluded from your gross income. If all of your debt cancellation income would have been business income, use the apportionment factor you calculated on Schedule NR for the tax year of the debt cancellation.
Line 3 — Follow the instructions on the form.

To whom does the surcharge apply?
The surcharge is imposed on any taxpayer who incurs a federal income tax liability on the income realized on a "transaction subject to the surcharge," including individuals and other taxpayers who are not themselves the "organization registrant" that engaged in the transaction.
A line has been included on Schedules K-1-P and K-1-T to identify the amount of federal income attributable to transactions subject to the surcharge that was passed through to you on federal Schedule K-1.
Note: Although a unitary business group filing combined Illinois returns is treated as a single taxpayer and its members are jointly and severally liable for any surcharge imposed on the group, the group itself is not an organization registrant and transactions of any member that is not itself an organization registrant are not subject to the surcharge.
How do I figure the surcharge?
If the surcharge applies to you, complete the Surcharge Worksheet on the next page.
For more information, see 86 Ill. Adm. Code Section 100.2060.
Line 52 — Sale of Assets by Gaming Licensee surcharge
Definitions
Gaming licensee is an organization licensee under the Illinois Horse Racing Act of 1975 and/or an organization gaming licensee under the Illinois Gambling Act.
Transactions subject to the surcharge means sales and exchanges of

capital assets;
depreciable business property;
real property used in the trade or business; and
Section 197 intangibles of a gaming licensee.

What is the surcharge?
For each taxable year 2019 through 2027, a surcharge is imposed on all taxpayers on income arising from the transactions subject to the surcharge of a gaming licensee.
The amount of the surcharge is equal to the amount of federal income tax liability for the taxable year attributable to the transactions subject to the surcharge.
To whom does the surcharge apply?
The surcharge is imposed on any taxpayer who incurs a federal income tax liability on the income realized on a "transaction subject to the surcharge," including individuals and other taxpayers who are not themselves the "gaming licensee" that engaged in the transaction.
The surcharge imposed shall not apply if

the organization gaming license, organization license, or racetrack property is transferred as a result of any of the following:
bankruptcy, a receivership, or a debt adjustment initiated by or against the initial licensee or the substantial owners of the initial licensee;
cancellation, revocation, or termination of any such license by the Illinois Gaming Board or the Illinois Racing Board;
a determination by the Illinois Gaming Board that transfer of the license is in the best interests of Illinois gaming;
the death of an owner of the equity interest in a licensee;
acquisition of a controlling interest in the stock or substantially all of the assets of a publicly traded company;
a transfer by a parent company to a wholly owned subsidiary; or
the transfer or sale to or by one person to another person where both persons were initial owners of the license when the license was issued;
the controlling interest in the organization gaming license, organization license, or racetrack property is transferred in a transaction to lineal descendants in which no gain or loss is recognized or as a result of a transaction in accordance with Section 351 of the Internal Revenue Code in which no gain or loss is recognized; or
live horse racing was not conducted in 2010 at a racetrack located within 3 miles of the Mississippi River under a license issued pursuant to the Illinois Horse Racing Act of 1975.

The transfer of an organization gaming license, organization license, or racetrack property by a person other than the initial licensee to receive the organization gaming license is not subject to a surcharge.
A line has been included on Schedule K-1-P and Schedule K-1-T to identify the amount of taxable gains attributable to transactions subject to the surcharge that was passed through to you on federal Schedule K-1.
Note: Although a unitary business group filing combined Illinois returns is treated as a single taxpayer and its members are jointly and severally liable for any surcharge imposed on the group, the group itself is not a gaming licensee and transactions of any member that is not itself a gaming licensee are not subject to the surcharge.

How do I figure the surcharge?
If the surcharge applies to you, complete the Surcharge Worksheet below.
Surcharge Worksheet for IL-1041
Instructions: Complete the appropriate column for the surcharge(s) A B you are claiming. Compassionate Use Sale of assets of Medical Cannabis by gaming Program Act licensee 1 Enter your federal income tax liability for the taxable year. 1 _ 1 2 Enter your federal income tax liability for the taxable year computed as if "transactions subject to the surcharge" made in that year had not been made by the organization registrant in Column A or a gaming licensee in Column B. 2 2 _ 3 Subtract Line 2 from Line 1. Enter the result here.
Enter the Column A total on Form IL-1041, Step 7, Line 51 or the
Column B total on Form IL-1041, Step 7, Line 52. 3 _ 3 _
Line 53 — Complete all sections of Illinois Schedule D and enter the amount from Illinois Schedule D, Section A, Line 3 on this line. This is the amount of pass-through withholding you owe on behalf of your beneficiaries. Attach Illinois Schedule D to your Form IL-1041. See "Definitions to help you complete your Form IL-1041" in these instructions for more information.
Note: Do not include on Line 53 any pass-through withholding reported to you on Schedule(s) K-1-P or K-1-T. Pass-through withholding amounts reported to you are included on Step 7, Line 55c.
Line 54 — Add Lines 49 through 53 and enter the total on this line. This is your total net income and replacement taxes, surcharge, and pass-through withholding you owe.
Line 55a — Enter the sum of any overpayment from your prior year tax returns that you requested to be applied to this year's tax return. Take into account any correspondence we may have sent you that changed the amount of your credit carryforward from the previous year.
Line 55b — Enter the sum of any

voluntary estimated payments or tax prepayments made before the date this return is filed,
extension payments made before the original due date of the return, and
other payments made before the date this return is filed.

Line 55c — Enter the amount of Illinois pass-through withholding (including any eligible investment partnership withholding) reported to you by partnerships, S corporations, or trusts on Schedule(s) K-1-P or K-1-T. If you received more than one Schedule K-1-P or K-1-T, add the amounts you wish to claim from all the schedules and enter the total on Line 55c.
Note: Partners in an investment partnership may not be eligible to claim a Schedule K-1-P, Step 7, Line 55 amount reported to them by the investment partnership. See Schedule K-1-P(2) for information about when a partner may claim investment partnership withholding credit.
Note: Do not include on Line 55c any pass-through withholding or pass-through entity tax you owe on behalf of your beneficiaries. Pass-through withholding amounts you owe on behalf of your beneficiaries is included on Step 7, Line 53.
Line 55d — Enter the amount of PTE tax credit reported to you on Schedule(s) K-1-P and K-1-T that is retained by the fiduciary. If you received more than one Schedule K-1-P or K-1-T, add the amounts you wish to claim from all the schedules and enter the total on Line 55d.
PTE tax credit passed through to beneficiaries is reported on Schedule K-1-T, Line 50.
Note: Do not include any PTE tax credit passed through to beneficiaries on Schedule D Section B, Line H.
For both Lines 55c and 55d:
Attach copies of the Schedules K-1-P and K-1-T you received from pass-through entities to your Form IL-1041.
Schedules K-1-P and K-1-T, Step 1, Line 3, must be completed or you will not receive credit for the pass-through withholding or PTE tax credit reported to you.
Note: To claim Illinois pass-through withholding or PTE tax credit from Schedule(s) K-1-P or K-1-T, all pages of the Schedule(s) K-1-P or K-1-T you received from pass-through entities must be attached and the tax year ending field of the Schedule(s) K-1-P and K-1-T must be completed.
See "Definitions to help you complete your Form IL-1041" in these instructions for more information.
Special Note: Do not attach copies of Schedules K-1-T you issued to your beneficiaries. You should keep copies of these schedules in your records.

Line 55e — Enter the amount of Illinois income tax withheld on wages and salaries (of a decedent), gambling withholding, and sports wagering winnings withholding that was received by you.
This withholding must be claimed by the fiduciary. Also include any Illinois Income Tax withheld as reported on any federal 1099 forms you received. Attach Forms W-2, W-2G, and any federal 1099 forms you received to your Form IL-1041.
Note: For Lines 55c, 55d, and 55e - Grantor trusts distribute all amounts reported on any Schedule K-1-P or K-1-T they receive to the grantor identified on Schedule K-1-P, Line 9b, or Schedule K-1-T, Line 8b. The distributed amounts are reported by the grantor on their own Illinois return. Review the Schedule K-1-P(2) or Schedule K-1-T(2) Instructions.
Line 58 — Enter the amount of overpayment you elect to be credited forward. Check the box on this line if this is your final return and any remaining carryforward is being transferred to another entity. Attach a detailed statement to your return listing the FEIN of the entity receiving the credit carryforward, the date the credit was transferred, and the reason for the transfer.
Note: Step 1, Line E, must also be completed if you are transferring an overpayment to another entity.
Your credit carryforward will not be applied if you do not file a processable return.
Note: Your credit carryforward may be reduced by us due to corrections we make to your return, or to satisfy any unpaid tax, penalty, and interest due for this year or any other year. If we reduce your credit carryforward, it may result in a late-payment penalty in a subsequent year.
To which tax year will my credit apply?
If your 2025 return was filed

on or before the original filing and payment due date of your return, your credit will be applied to the next full tax year, unless you elect to apply the credit to a different tax year.

Example 1: You file your 2025 calendar-year return on March 3, 2026, requesting to receive your overpayment as a credit. March 3, 2026, falls before the original filing and payment due date of the 2025 tax year (April 15, 2026, for calendar-year filers). Your credit will be applied against your 2026 tax year liability.

after the original filing and payment due date of your return, your credit will be applied to the next full tax year in which timely payments can be made as of the date you are filing this return, unless you elect to apply the credit to a different tax year.

Example 2: You file your 2025 calendar-year return on August 5, 2026, requesting to receive your overpayment as a credit. August 5, 2026, is after the original filing and payment due date of the 2025 tax year (April 15, 2026, for calendar-year filers), but is before the original filing and payment due date of the 2026 tax year (April 15, 2027, for calendar-year filers). Your credit will be applied against your 2026 tax year liability.
Example 3: You file your 2025 calendar-year return on April 23, 2027, requesting to receive your overpayment as a credit. April 23, 2027, is after the original filing and payment due date of the 2026 tax year (April 15, 2027, for calendar-year filers), but is before the original filing and payment due date of the 2027 tax year (April 15, 2028, for calendar-year filers). Your credit will be applied against your 2027 tax year liability.
Note: If you wish to apply the credit to a different tax year, see "May I apply my credit to a different tax year?"
With what date will my credit apply against my tax liability?
If your 2025 return was filed

on or before the extended due date of your return (October 15, 2026, for calendar-year filers), your credit is considered to be paid on the original due date of this return (April 15, 2026, for calendar-year filers).

However, if all or a portion of your overpayment results from payments made after the original due date of this return, that portion of your credit is considered to be paid on the date you made the payment.
Example 1: You file your 2025 calendar-year return on or before the extended due date of your return requesting $500 be applied as a credit. All of your payments are made before the original due date of your return. Your credit of $500 will be considered to be paid on April 15, 2026.
Example 2: You file your 2025 calendar-year return on or before the extended due date of your return requesting $500 be applied as a credit. Your overpayment includes payments of $400 you made before the original due date of your return, and a $100 payment you made on June 3, 2026. Your credit of $400 will be considered to be paid on April 15, 2026. The remaining $100 credit will be considered to be paid on June 3, 2026.

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 2025 calendar-year return on December 2, 2026, requesting $500 be applied as a credit.
Your credit of $500 will be considered to be paid on December 2, 2026, because you filed your return after the extended due date of your 2025 calendar-year return.
Note: If you are filing your return after the extended due date, you may only elect to claim an overpayment credit for payments received on or before the date you filed your return. Any payments made after the date you filed that return can only be claimed as an overpayment credit on a subsequent amended 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 during which you file this return, you must submit a separate request in writing to:

ILLINOIS DEPARTMENT OF REVENUE

PO BOX 19004
SPRINGFIELD IL 62794-9004
Note: Submit your request at the time you file your return. Do not submit your return to this address.
Your request must include

your name,
your FEIN,
the tax year of the return creating the overpayment, and
the tax year you wish to have the credit apply.

If you do not follow these instructions, your election will be considered invalid and we will not apply your credit as you requested.
If you submit a valid request, we will apply your credit as you requested and notify you. Once made, your election to change the tax year to which your credit will apply is irrevocable. Requests will be worked in the order we receive them.
Note: You may only apply your credit to tax years occurring after the year of the return creating the overpayment. If you request to apply more credit than our records show you have available, we will apply the maximum amount available and notify you of the difference.
Lines 59 — Follow the instructions on the form. Your refund will not be issued if you do not file a processable return.
Note: Your refund may be reduced by us to satisfy any unpaid tax, penalty, and interest due for this year or any other year.
Line 60 — Direct deposit information.
If you choose to deposit your refund directly into your checking or savings account, you must

Enter your routing number. ○ For a checking account, your routing number must be nine digits and the first two digits must be 01 through 12 or 21 through 32. The sample check following these instructions has an example of a routing number. ○ For a savings account, you must contact your financial institution for your routing number.
Check the appropriate box to indicate whether you want your refund deposited into your checking or savings account.
Enter your account number. ○ For a checking account, your account number may be up to 17 digits. The sample check following these instructions has an example of an account number. ○ For a savings account, you must contact your financial institution for your account number.

Do not use your account and routing numbers from your checking or savings account deposit slip. Do not include your check number. Include hyphens, but omit spaces and special symbols. You may have unused boxes.
Note: If your financial institution does not honor your request for direct deposit, we will send you a check instead.
Note: We do not support international ACH transactions. We will only deposit refunds into accounts located within the United States. If your financial institution is located outside the United States, we will send you a check instead of depositing your refund into your account.
Line 61 — Follow the instructions on the form. This is your amount of tax due that must be paid in full if $1 or more. If you are not paying electronically, complete a payment voucher, Form IL-1041-V, make your check or money order payable to "Illinois Department of Revenue", write your FEIN, tax year ending, and "IL-1041-V" on your check or money order, and attach the payment and voucher to the front of your return.
Note: If you are paying electronically do not complete and attach a payment voucher.

You should also enter the payment amount you are submitting with this return in the box located on the top of Page 1 of the Form IL-1041.
We encourage you to let us figure your penalties and interest and send you a bill instead of determining these amounts yourself. We will compute any penalty and interest due and notify you (see General Information, "What are the penalties and interest?").

Step 8 — Signature, date, and paid preparer's information

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

General Information

Read this information before completing Illinois Schedule D.
Amounts listed on the Schedule(s) K-1-T and Schedule(s) K-1-T(3) you complete are carried to your Illinois Schedule D and then reported on your Form IL-1041. Therefore, you must complete Schedule(s) K-1-T and Schedule(s) K-1-T(3) before completing Schedule D.
In order to ensure you complete Schedule D correctly, do the following in order:

Complete all Schedule(s) K-1-T and Schedule(s) K-1-T(3), as applicable, for your beneficiaries before completing any section of Illinois Schedule D. The information reported on Schedule(s) K-1-T and Schedule(s) K-1-T(3) will be used to complete Illinois Schedule D. See Schedule K-1-T(1) for more information.
Complete Section B of Illinois Schedule D before completing Section A of Illinois Schedule D. Section B reports specific amounts from each Schedule K-1-T and Schedule K-1-T(3) you completed. Section B is required to be completed in full in order to avoid processing delays, further correspondence, or delays in the processing of any overpayments.
Complete Section A of the Illinois Schedule D. Section A reports total amounts from Section B, and is required to be completed in full in order to avoid processing delays, further correspondence, or delays in the processing of any overpayments.
Carry the amount from Illinois Schedule D, Section A, Line 3, to your Form IL-1041, as applicable.

See the Schedule K-1-T(1) Instructions and Illinois Schedule D, Specific Instructions, for more information.
What is the purpose of Illinois Schedule D?
The purpose of Illinois Schedule D, Beneficiary Information, is for you to identify any person who was a beneficiary during your tax year.
Illinois Schedule D also allows you to identify your beneficiaries that are subject to the Illinois Personal Property Tax Replacement Income Tax and to figure the share of distributable income or loss that is to be added to or subtracted from your base income.
Is Schedule D required?
Yes. You are required to have a copy of this form on file. You must attach a copy to your Form IL-1041, Illinois Fiduciary Income and Replacement Tax Return.
Illinois Schedule D supports the amount reported on Form IL-1041, Step 7, Line 53, as pass-through withholding you owe on behalf of your nonresident beneficiaries. Therefore, you must follow the instructions for Illinois Schedule D, complete it in full, and attach it to your return.
Note: You must use forms prescribed by IDOR. Separate statements not on forms provided or approved by IDOR will not be accepted and you will be asked for appropriate documentation. Failure to comply with this requirement may delay the processing of your return or the generation of any overpayment. Additionally, failure to submit appropriate documentation when requested may result in a referral to our Audit Bureau for compliance action.
Fiduciaries must complete Illinois Schedule D. Do not send a computer printout with line numbers and dollar amounts attached to a blank copy of the schedule. Computer generated printouts are not acceptable, even if they are in the same format as IDOR's forms. Computer generated forms from an IDOR-approved software developer are acceptable.

What is a resident?
A resident is

an individual who is present in Illinois for other than a temporary or transitory purpose;
an individual who is absent from Illinois for a temporary or transitory purpose but who is domiciled in Illinois;
the estate of a decedent who at his or her death was domiciled in Illinois;
a trust created by a will of a decedent who at his or her death was domiciled in Illinois; or
an irrevocable trust, whose grantor was domiciled in Illinois at the time the trust became irrevocable. For purposes of this definition, a trust is irrevocable to the extent that the grantor is not treated as the owner of the trust under IRC Sections 671 through 678.

What is a nonresident?
A nonresident is a person who is not a resident, as previously defined. Corporations, S corporations, partnerships, and exempt organizations are considered nonresidents for purposes of Illinois Schedule D.
What do Section B, Lines F and G report?
Lines F and G report certain items of income and pass-through withholding you reported to your nonresident beneficiaries on the Schedule K-1-T you issued to them.
How do I determine the amounts to report in Section B, Lines F and G?
Before completing Illinois Schedule D you must complete Schedule(s) K-1-T and Schedule(s) K-1-T(3) for each of your nonresident beneficiaries, as applicable. The amounts reported on those schedules will be used to complete Illinois Schedule D, Section B, Lines F and G.
Estates are not required to make pass-through withholding on behalf of their nonresident beneficiaries.
See Schedule K-1-T(1) for instructions and more information about Schedule K-1-T(3).
What does Section B, Line H report?
Line H reports the amount of pass-through entity tax credit you received that is being distributed to your beneficiaries. This amount will also be reported on the Schedule K-1-T distributed to the beneficiary.

Specific Instructions

Section A: Total beneficiaries' information
Note: Complete Schedule(s) K-1-T and Schedule(s) K-1-T(3), as applicable, and all of Illinois Schedule D, Section B, before completing this section.
Illinois Schedule D, Section A should be completed using the totals from Illinois Schedule D, Section B. When you submit your return you should only attach a single page of Section A. If you require multiple pages of Section B, you may attach as many pages of Section B as required behind Section A.
Line 1 — Report amounts for both resident and nonresident beneficiaries — Add the amounts you reported on Step 3, Column A, Line 9 through Line 18, of all the Schedule(s) K-1-T you issued to your beneficiaries and enter the total here.
Line 2 — Report amounts for nonresident beneficiaries only.
Line 2a — Enter the total amount of pass-through withholding you reported on the Schedule(s) K-1-T you issued to your nonresident individual beneficiaries only. Total the amounts reported in Section B, Line G, for beneficiaries that are identified with an "I" in Section B, Line B, and enter it here.
Line 2b — Enter the total amount of pass-through withholding you reported on the Schedule(s) K-1-T you issued to your nonresident estate beneficiaries only. Total the amounts reported in Section B, Line G, for beneficiaries that are identified with an "M" in Section B, Line B, and enter it here.
Line 2c — Enter the total amount of pass-through withholding you reported on the Schedule(s) K-1-T you issued to your partnership and S corporation beneficiaries only. Total the amounts reported in Section B, Line G, for beneficiaries that are identified with a "P" or "S" in Section B, Line B, and enter it here.
Line 2d — Enter the total amount of pass-through withholding you reported on the Schedule(s) K-1-T you issued to your nonresident trust beneficiaries only. Include beneficiaries identified as an exempt organization (trust). Total the amounts reported in Section B, Line G, for beneficiaries that are identified with a "T" or "A" in Section B, Line B, and enter it here.
Line 2e — Enter the total amount of pass-through withholding you reported on the Schedule(s) K-1-T you issued to your C corporation beneficiaries only. Include beneficiaries identified as an exempt organization (corporation). Total the amounts reported in Section B, Line G, for beneficiaries that are identified with a "C" or "N" in Section B, Line B, and enter it here.
Line 3 — Add Section A, Lines 2a through 2e of this Illinois Schedule D and enter this amount here and on Form IL-1041, Line

The amount on Line 3 should match the total amount from Schedule D, Section B, Line G, for all beneficiaries on all pages.

If you completed multiple pages of Section B, only complete Section A once reporting the totals from all pages of Section B.
Place all pages of Section B behind the single page of Section A, and attach them to your return.

Section B: Beneficiaries' information
Columns 1 through 3 —
Line A — Enter the name and address of each beneficiary. Use the following examples as a guide.
If the beneficiary is an individual, use the following formats:
John Doe
111 W. Main Street
Anytown
IL 62666

John and Mary Doe
111 W Main Street
Anytown
IL 62666

John Doe
% Mary Doe
111 W Main St. #5A
Anytown
IL 62666
If the beneficiary is a trust or an estate, use the following formats:
John Doe Bankruptcy Trust
% Mary Doe, Trustee
111 W Main Street, Suite 4A
Anytown
IL 62666
Estate of John Doe
111 W Main St., Ste 4A
Anytown
IL 62666
If the beneficiary is a corporation (including S corporations), or a partnership, use the following formats:
Illinois Big Business Group
% John Doe, VP Finance
111 West Main Street, Suite 4
Anytown
IL 62666
Illinois Small Business Group
% Mary Doe
111 West Main Street
Anytown
IL 62666
Line B — Indicate the type of each beneficiary. Enter

"I" for individual
"P" for partnership
"C" for C corporation
"S" for S corporation
"T" for trust
"M" for estate
"A" for exempt organization (trust)
"N" for exempt organization (corporation)

Note: If this beneficiary is a grantor trust or other disregarded entity, enter the letter that corresponds to the tax type of the grantor or owner.
Line C — Enter the Social Security number (SSN) or federal employer identification number (FEIN) of each beneficiary.
Note: If the beneficiary is a foreign entity and does not have an SSN or FEIN, leave this line blank for that beneficiary. If you leave this line blank, you may be contacted for further information.
Line D — Enter the amount of base income or loss that was distributed or deemed distributed to this beneficiary.
Line E — If the beneficiary was excluded from pass-through withholding indicate the reason by entering

"R" if the beneficiary is an Illinois resident,
"E" if the beneficiary provided you a Form IL-1000-E, Certificate of Exemption for Pass-through Withholding, indicating that they would pay their own tax liability,

Note: Beneficiaries who provide you Form IL-1000-E must not be individual taxpayers.

"M" if you are an estate and therefore not required to make pass-through withholding on behalf of your beneficiaries, or
"N" if the beneficiary was an exempt organization and you did not make pass-through withholding on their behalf.

Note: Taxpayers are not required to make pass-through withholding on behalf of their exempt organization beneficiaries, but may do so for tax years ending on or after December 31, 2014.
If you elected to make pass-through withholding on behalf of an exempt organization beneficiary, leave Line E blank for that beneficiary and complete Lines F and G.
Line F — Enter the amount you reported on Step 3, Line 12, of the Schedule K-1-T(3) you completed for this beneficiary. This amount is this beneficiary's share of Illinois income subject to pass-through withholding.
Note: This amount is a dollar amount. Do not list a percentage in this column.
Line G — Enter the amount of pass-through withholding that was made on behalf of the beneficiary and reported to them on Schedule K-1-T, Step 7, Line 49. This amount cannot be negative.
Note: This should match the amount reported on Step 3, Line 13, of the Schedule K-1-T(3) you completed for this beneficiary.

Line H — Enter each beneficiary's distributive share of PTE tax credit you are passing through from Schedule(s) K-1-P or K-1-T you received. The PTE tax credit is passed through to your beneficiaries in the same proportion that the pass-through income is distributed to your beneficiaries. Also list each beneficiary's share on their Schedule K-1-T, Step 7, Line 50. This amount cannot be negative.
Note: Do not include any PTE tax credit passed through to you from Schedule(s) K-1-P or K-1-T that you retain and report on Form IL-1041, Step 7, Line 55d.
If you have more than three beneficiaries to report, and additional space is needed, complete and attach additional pages of Illinois Schedule D, Section B. After you have completed Section B, listing all required amounts for your beneficiaries, complete the single page of Illinois Schedule D, Section A.
Note: To avoid potential delays in processing, IDOR recommends that you add page numbers to Illinois Schedule D, Section B, when additional pages are needed.

Appendix A - Extension Tax Payment Worksheet
Use this worksheet if all of the following apply to you:

you are required to file Form IL-1041,
you cannot file your annual tax return by the due date, and
you complete this worksheet and determine you owe a tentative tax.

If Line 8 of the worksheet shows you owe tentative tax, pay the full amount due either by filing and paying with Form IL-1041-V or by making your payment electronically. An extension of time to file does not extend the amount of time you have to make your payment.
Extension Tax Payment Worksheet (for your records)
1 Enter the total income (trusts and estates) and replacement (trusts only) taxes you expect to owe
(including recapture of investment credits, pass-through withholding you will owe on behalf of your beneficiaries, and surcharges from the Compassionate Use of Medical Cannabis Program Act and the sale of assets by gaming licensee). 1 2 Enter any previous tax payments or prepayments you made and any overpayment you elected to be credited to this tax year. 2 3 Enter any withholding reported to you and pass-through withholding (including any eligible investment partnership withholding) made on your behalf or PTE tax credit reported to you and retained by you in this tax year. 3 4 Resident fiduciary only, enter any credit for income tax paid to other states expected in this tax year. 4 5 Enter the estimated income tax credits expected for this tax year. 5 6 Enter the estimated replacement tax investment credits expected for this tax year. 6 7 Add lines 2 through 6 and enter the result here. 7 8 Subtract Line 7 from Line 1. This is your tentative tax due. Enter the result here and on Form IL-1041-V. 8
Extension Tax Payment Worksheet Instructions
Line 1 — Enter the total amount of income (trusts and estates) and replacement (trusts only) taxes (including the amount of recapture of investment tax credit that you expect to report on Schedule 4255, Recapture of Investment Tax Credits, pass-through withholding you expect to owe on behalf of your beneficiaries, and surcharges from the Compassionate Use of Medical Cannabis Program Act and the sale of assets by gaming licensee you expect to owe for the tax year).
Line 2 — Enter the total amount of any previous tax payments or prepayments you made and any overpayment you elected to be credited to this tax year.
Line 3 — Enter the total amount of Illinois income tax withheld on Forms W-2 and W-2G, and the amount of pass-through withholding (including any eligible investment partnership withholding) made on your behalf and reported to you on Illinois Schedule(s) K-1-P or Schedule K-1-T or the amount of PTE tax credit received on Illinois Schedule(s) K-1-P or Schedule K-1-T and retained by the fiduciary.
Line 4 — If you are a resident fiduciary, enter the estimated Illinois credit for income tax paid to other states (the sum of Schedule CR, Step 5, Lines 59 and 60). See the instructions for Schedule CR (Form IL-1041).
Line 5 — Enter the total of any estimated income tax credits (including any credit carryforward) from Schedule 1299-D.
Line 6 — Enter the amount of any estimated replacement tax investment credits from Form IL-477.
Line 7 — Follow the directions on the worksheet. This is your total tax payments and credits.
Line 8 — Subtract Line 7 from Line 1. This is your tentative tax due. If Line 8 is $1 or more, you must pay the amount due. If Line 8 is less than $1, you do not have to pay or file Form IL-1041-V. Do not attach your Federal Form 7004 to your Form IL-1041-V.
Note: Pay electronically at tax.illinois.gov or use Form IL-1041-V, Payment Voucher for Fiduciary Income and
Replacement Tax.
Failure to use the correct voucher for your payments may result in your payment being misapplied, penalties and interest, a delay in the processing of your return, or a delay in the generation of any overpayment.

Appendix B - Tax Prepayment Worksheets
Use this worksheet to determine the amount to voluntarily prepay:

pass-through withholding on behalf of your beneficiaries or
your own tax liability.

Prepayments are entirely voluntary; however, we suggest that you make your prepayments in four equal installments during the course of a year.
Check the following boxes to determine which worksheets you should complete. (You may check multiple boxes.) 1 If you have nonresident individual and estate beneficiaries that you wish to voluntarily prepay pass-through withholding on behalf of, check this box and complete Worksheet 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 If you have partnership or S corporation beneficiaries that you wish to voluntarily prepay pass-through withholding on behalf of, check this box and complete Worksheet 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 If you have nonresident trust beneficiaries that you wish to voluntarily prepay pass-through withholding on behalf of, check this box and complete Worksheet 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 If you have corporation beneficiaries that you wish to voluntarily prepay pass-through withholding on behalf of, check this box and complete Worksheet 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 If you wish to prepay your own estimated tax liability, check this box and complete Worksheet 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Once the worksheets are complete, add the total from each worksheet:
Worksheet 1, Line 7
Worksheet 2, Line 7
Worksheet 3, Line 7
Worksheet 4, Line 7
Worksheet 5, Line 11
TOTAL
This is the amount of each of your voluntary quarterly prepayments to be made with Form IL-1041-V. These payments may be made at any time, up to and including the original due date of your return.
Note: Pay electronically at tax.illinois.gov or use Form IL-1041-V to mail your payment.
Failure to use the correct voucher for your prepayments may result in your payment being misapplied, penalties and interest, a delay in the processing of your return, or a delay in the generation of any overpayment.
Worksheet 1: Figure your pass-through withholding prepayments for nonresident individual and estate beneficiaries. If you have nonresident individual and estate beneficiaries that you wish to voluntarily prepay pass-through withholding on behalf of, complete this worksheet to determine the amount of your prepayment. Keep this record for your files.
1 Enter your nonresident individual and estate beneficiaries' share of business income apportioned to Illinois expected in the tax year (cannot be less than zero). 1 2 Enter your nonresident individual and estate beneficiaries' share of nonbusiness income allocable to Illinois expected in the tax year (cannot be less than zero). 2 3 Add Lines 1 and 2 and enter the result. 3 4 Multiply Line 3 by 4.95 percent (.0495) and enter the result. 4 5 Enter the amount of surcharge from the Compassionate Use of Medical Cannabis Program Act and the surcharge from the sale of assets by gaming licensee passed-through to you and distributed to nonresident individual and estate beneficiaries. 5 6 Add Lines 4 and 5. 6 7 Divide Line 6 by 4. This is the amount of each of your voluntary prepayments for nonresident individual and estate beneficiaries. 7

Worksheet 2: Figure your pass-through withholding prepayments for partnership or S corporation beneficiaries. If you have partnership or S corporation beneficiaries that you wish to voluntarily prepay pass-through withholding for, complete this worksheet to determine the amount of your prepayment. Keep this record for your files.
1 Enter your partnership or S corporation beneficiaries' share of business income apportioned to Illinois expected in the tax year (cannot be less than zero). 1 2 Enter your partnership or S corporation beneficiaries' share of nonbusiness income allocable to Illinois expected in the tax year (cannot be less than zero). 2 3 Add Lines 1 and 2 and enter the result. 3 4 Multiply Line 3 by 1.5 percent (.015) and enter the result. 4 5 Enter the amount of surcharge from the Compassionate Use of Medical Cannabis Program Act and the surcharge from the sale of assets by gaming licensee passed-through to you and distributed to partnership and S corporation beneficiaries. 5 6 Add Lines 4 and 5. 6 7 Divide Line 6 by 4.This is the amount of each of your voluntary prepayments for partnership or S corporation beneficiaries. 7 Worksheet 3: Figure your pass-through withholding prepayments for nonresident trust beneficiaries. If you have nonresident trust beneficiaries that you wish to voluntarily prepay pass-through withholding for, complete this worksheet to determine the amount of your prepayment. Keep this record for your files.
1 Enter your nonresident trust beneficiaries' share of business income apportioned to Illinois expected in the tax year (cannot be less than zero). 1 2 Enter your nonresident trust beneficiaries' share of nonbusiness income allocable to Illinois expected in the tax year (cannot be less than zero). 2 3 Add Lines 1 and 2 and enter the result. 3 4 Multiply Line 3 by 6.45 percent (.0645) and enter the result. 4 5 Enter the amount of surcharge from the Compassionate Use of Medical Cannabis Program Act and the surcharge from the sale of assets by gaming licensee passed-through to you and distributed to nonresident trust beneficiaries. 5 6 Add Lines 4 and 5. 6 7 Divide Line 6 by 4. This is the amount of each of your voluntary prepayments for nonresident trust beneficiaries. 7 Worksheet 4: Figure your pass-through withholding prepayments for corporation beneficiaries. If you have corporation beneficiaries that you wish to voluntarily prepay pass-through withholding for, complete this worksheet to determine the amount of your prepayment. Keep this record for your files.
1 Enter your corporation beneficiaries' share of business income apportioned to Illinois expected in the tax year (cannot be less than zero). 1 2 Enter your corporation beneficiaries' share of nonbusiness income allocable to Illinois expected in the tax year (cannot be less than zero). 2 3 Add Lines 1 and 2 and enter the result. 3 4 Multiply Line 3 by 9.5 percent (.095) and enter the result. 4 5 Enter the amount of surcharge from the Compassionate Use of Medical Cannabis Program Act and the surcharge from the sale of assets by gaming licensee passed-through to you and distributed to corporation beneficiaries. 5 6 Add Lines 4 and 5. 6 7 Divide Line 6 by 4. This is the amount of each of your voluntary prepayments for corporation beneficiaries. 7

Worksheet 5: Figure your own tax liability prepayments. If you wish to voluntarily prepay your own income and replacement tax liability complete this worksheet to determine the amount of your prepayment. Keep this record for your files.
1 Enter the amount of Illinois net income expected in this tax year. 1
2 Figure your tax before credits. Multiply Line 1 by 4.95 percent (.0495) for estates or
6.45 percent (.0645) for trusts. 2
3 Enter the amount of recapture of investment credits expected in this tax year. 3
4 Enter the sum of the Compassionate Use of Medical Cannabis Program Act surcharge and the
Sale of Assets by Gaming Licensee surcharge you expect in this tax year. 4
5 Add Lines 2 through 4 and enter the result. 5
6 Enter the amount of Illinois tax credits expected in this tax year as calculated on the corresponding
Form IL-477, Schedule CR, or Schedule 1299-D. 6
7 Enter the amount of pass-through withholding (including any eligible investment partnership withholding) expected to be made on your behalf or PTE tax credit expected in the next tax year on any Schedule K-1-P or Schedule K-1-T you receive. 7 8 Enter the amount of Illinois withholding you expect in this tax year as shown on any Federal Forms W-2, W-2G, or 1099 you expect to receive. 8 9 Add Lines 6 through 8 and enter the result. 9 10 Subtract Line 9 from Line 5 and enter the result. 10 11 Divide Line 10 by 4. This is the amount of each of your voluntary prepayments for your own tax liability. 11

The source document contains 1 figure (charts or worksheet graphics) not reproduced in this text version. See the official PDF above.

Instructions for Form IL-1041 — Fiduciary Income & Replacement Tax Return

# General Information

# ILLINOIS DEPARTMENT OF REVENUE BULK SALES UNIT

# ILLINOIS DEPARTMENT OF REVENUE

# ILLINOIS DEPARTMENT OF REVENUE TAXPAYER CORRESPONDENCE

# ILLINOIS DEPARTMENT OF REVENUE

# ILLINOIS DEPARTMENT OF REVENUE

# ILLINOIS DEPARTMENT OF REVENUE

# ILLINOIS DEPARTMENT OF REVENUE

# Specific Instructions

# Step 1 — Identify your fiduciary

# Step 2 — Figure your income or loss

# Step 3 — Figure your base income or loss

# Step 4 — Figure your net income

# Step 5 — Figure your net replacement tax - For trusts only, estates go to Step 6

# Step 6 — Figure your net income tax - For trusts and estates

# Step 7 — Figure your refund or balance due

# ILLINOIS DEPARTMENT OF REVENUE

# Step 8 — Signature, date, and paid preparer's information

# General Information

# Specific Instructions

General Information

ILLINOIS DEPARTMENT OF REVENUE BULK SALES UNIT

ILLINOIS DEPARTMENT OF REVENUE

ILLINOIS DEPARTMENT OF REVENUE TAXPAYER CORRESPONDENCE

ILLINOIS DEPARTMENT OF REVENUE

ILLINOIS DEPARTMENT OF REVENUE

ILLINOIS DEPARTMENT OF REVENUE

ILLINOIS DEPARTMENT OF REVENUE

Specific Instructions

Step 1 — Identify your fiduciary

Step 2 — Figure your income or loss

Step 3 — Figure your base income or loss

Step 4 — Figure your net income

Step 5 — Figure your net replacement tax - For trusts only, estates go to Step 6

Step 6 — Figure your net income tax - For trusts and estates

Step 7 — Figure your refund or balance due

ILLINOIS DEPARTMENT OF REVENUE

Step 8 — Signature, date, and paid preparer's information

General Information

Specific Instructions