Instructions for Form IL-1120-ST — Small Business Corporation Replacement Tax Return

Illinois Department of Revenue
IL-1120-ST 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?

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.
Effective for tax years ending on or after December 31, 2025, Illinois adopts the "Finnigan" method of apportionment for unitary businesses when computing the sales factor numerator and applying the throwback and throw-out rules.

Table of Contents
What's New? 1
General Information 1
Specific Instructions 8
Apportionment Formulas 18
Illinois Schedule B Instructions 21
Appendix A - Extension Tax Payment Worksheet 26 Appendix B - Pass-through Withholding Prepayment Worksheets 27 Appendix C - Estimated Payment and Prepayment Worksheet 29

General Information

Who must file Form IL-1120-ST?
You must file Form IL-1120-ST if you are a small business corporation ("S corporation"), as defined in Internal Revenue Code (IRC) Section 1361(a), that

has net income or loss as defined under the Illinois Income Tax Act (IITA); or
is qualified to do business in the state of Illinois and is required to file federal Form 1120S (regardless of net income or loss).

If you own a Qualified Subchapter S Subsidiary (QSSS) defined in IRC Section 1361(b)(3), as well as any other entity that is disregarded as an entity separate from you for purposes of the IRC, it is likewise disregarded as a separate entity for purposes of the IITA. You must include all items of income, deduction, loss, credit, etc., from such entities on your return as if they were earned or incurred by you directly.
If you are an S corporation that is a member of a unitary business group, see the Illinois Schedule UB, Combined Apportionment for Unitary Business Group Instructions and "What if I am a member of a unitary group?" in these instructions for information about filing requirements. S corporations may be required to apportion their business income as members of a unitary group, but cannot file a combined return.
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.
S corporations must complete Form IL-1120-ST. 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-1120-ST is for tax years ending on or after December 31, 2025, and before December 31, 2026. For tax years 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-1120-ST, 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-1120-ST is due on or before the 15th day of the 3rd month following the close of the tax year.
Automatic seven-month extension — We grant you an automatic seven-month extension of time to file your small business corporate 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-1120-ST-V, Payment Voucher for Small Business Corporation 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 for more information. An extension of time to file your Form IL-1120-ST 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 seven 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 equal to the federal extension, plus one month. You must attach a copy of the approved federal extension to your
Form IL-1120-ST.
When should I pay?
Payment of tax — You must pay your Illinois Replacement Tax, pass-through withholding, and PTE tax you elect to pay 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 your return has been granted. All payments must be made using Form IL-1120-ST-V.
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-1120-ST-V, either electronically or by mail. See Appendix A for more information.
Estimated tax payments — S corporations who elect to pay PTE tax and reasonably expect their total tax liability to exceed $500 are required to make estimated tax payments using Form IL-1120-ST-V, either electronically or by mail. Estimated Payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. All other S corporations are not required to make estimated tax payments. See Appendix C for more information.
Voluntary Prepayments - S corporations who do not elect to pay PTE tax or S corporations who elect to pay PTE tax and reasonably expect their total tax liability to be less than $500 may make voluntary prepayments of their own tax liability using Form IL-1120-ST-V. S corporations who do not elect to pay PTE tax may also use Form IL-1120-ST-V to make pass-through withholding prepayments on behalf of your shareholders. See Appendix B and Appendix C 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(s) IL-1120-ST-V. You must use one of our electronic payment options if 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-1120-ST must be signed by the president, vice president, treasurer, or any other officer duly authorized to sign the return. In the case of a bankruptcy, a receiver, trustee, or assignee must sign any return required to be filed on behalf of the corporation. The signature verifies by written declaration (and under penalties of perjury) that the signing individual has personally examined the return and the return is true, correct, and complete. The fact that an individual's name is signed to a return is prima facie evidence that the individual is authorized to sign the return on behalf of the corporation.
Any person paid to prepare the return (other than 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 late-payment penalty for underpayment of estimated tax if you were required to make estimated tax payments and failed to do so, or failed to pay the required amount by the payment due date;
a bad check penalty if your remittance is not honored by your financial institution; and
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, available at tax.illinois.gov.
What if I am discontinuing my business?
Liquidation, withdrawal from Illinois, or loss of charter — If you are a corporation that is liquidated, withdraws either voluntarily or involuntarily from Illinois, or in any manner surrenders or loses your charter during any tax year, you are still required to file tax returns. Also, we will pursue the assessment and collection of taxes owed by you or your shareholders.
Sales or transfers — If you are a corporation 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
What if I need to correct or change my return?
Do not file another Form IL-1120-ST with "amended" figures to change your originally filed Form IL-1120-ST. If you need to correct or change your return after it has been filed, you must file Form IL-1120-ST-X, Amended Small Business 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-1120-ST-X instructions.
You should file Form IL-1120-ST-X only after you have filed a processable Illinois Income Tax return. You must file a separate Form IL-1120-ST-X for each tax year you wish to change.
State changes only — File Form IL-1120-ST-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-1120-ST-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-1120-ST-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-1120-ST-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-1120-ST-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-1120-ST-X. Examples of federal finalization include a copy of one or more of the following items:

your audit report from the IRS
your federal record of account verifying your ordinary business 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-1120-ST. 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-1120-ST are subject to verification and audit.
Should I round?
You must round the dollar amounts on Form IL-1120-ST 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. S corporations and partnerships, including any that are members of a unitary group, trusts, and non-unitary corporations should 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 7, Line 50. See specific instructions for Step 7, Line 50.
If you have an Illinois net loss for this tax year, you must file Form IL-1120-ST 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 NLD, see Schedule NLD instructions or the 86 Ill. Adm. Code Sections 100.2050 and 100.2300 through 100.2330, available on our website at tax.illinois.gov.
What are the carry provisions 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 cannot be carried back, and can only be carried forward for 12 years. However, the carryover period of any net loss that had 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 carry forward 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.
Losses incurred in tax years ending before December 31, 1999, can be carried back and carried forward for the periods allowed under Internal Revenue Code (IRC) Section 172, for the tax year in which the loss was incurred. In general, losses incurred 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 any Illinois net loss you incurred for that year before you determine an Illinois NLD. This reduction is made on the Illinois income tax return you filed for the loss year using the Loss Reduction Worksheet in these instructions. 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 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 1120S, Pages 1 through 5, to your Illinois return.
Schedule B, Partners' or Shareholders' Information, must be completed and attached to all Form IL-1120-ST filings.
If you are required to attach any Schedule(s) K-1-P, Partner's or Shareholder's Share of Income, Deductions, Credits, and Recapture, only attach Schedule(s) K-1-P you received which lists your name and FEIN in Step 2 of Schedule K-1-P. Do not attach copies of Schedule(s) K-1-P you issued and which lists your name and FEIN in Step 1 of Schedule K-1-P.
Note: When filing your Form IL-1120-ST, 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
All references to "income" include losses.
Base income means federal ordinary income modified by additions and subtractions as shown in Steps 2 through 5 of Form IL-1120-ST. See specific instructions for Steps 2 through 5.
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 corporation 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.
Most income of a corporation is regarded as business income. Consequently, in the case of a corporation other than a personal holding company, the consistent treatment of income from intangibles as business income in filing Illinois tax returns will be presumed correct.
Commercial domicile means the principal place from which your trade or business is directed or managed.
Nonbusiness income means all income other than business income or compensation. For more information about the different types of nonbusiness income, see the instructions for Illinois Schedule NB, Nonbusiness Income.
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.
Pass-through Entity (PTE) tax is an amount equal to 4.95 percent (.0495) of the taxpayer's calculated net income for the taxable year paid by a partnership (other than a publicly traded partnership under Section 7704 of the Internal Revenue Code) or an 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 is

reported to your shareholders on the Schedule K-1-P and
reported to IDOR on Form IL-1120-ST and Illinois Schedule B.

A nonresident individual shareholder of an S Corporation for a taxable year in which the election to pay PTE tax was made shall not be required to file an income tax return under the IITA for such taxable year if the only source of net income of the individual (or the individual and the individual's spouse in the case of a joint return) is from an entity making the PTE election and the credit allowed to the shareholder equals or exceeds the individual's liability for the tax imposed under subsections (a) and (b) of Section 201 of the IITA for the taxable year.
Pass-through withholding is the amount required to be reported and paid by the pass-through entity, who does not elect to pay PTE tax, 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 shareholders on the Schedule K-1-P you send to them,
reported to IDOR on your Form IL-1120-ST and Illinois Schedule B, and
paid with your return or voluntarily prepaid with Form IL-1120-ST-V.

Note: If any of your shareholders 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 shareholders may claim a credit on their Illinois Income Tax return for pass-through withholding you reported and paid on their behalf.
S corporations can both make and receive pass-through withholding.

Pass-through withholding you owe on behalf of your members is a payment of pass-through withholding you make on behalf of your nonresident shareholders who have not submitted Form IL-1000-E to you. This amount will be reported on Form IL-1120-ST, Line 59.
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-1120-ST, Line 65c.

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. Partners in an investment partnership must determine how they are treating the income passed to them from the investment partnership to determine if they are eligible to use the investment partnership withholding credit. Eligible partners will treat the investment partnership withholding credit the same as the pass-through withholding credit. See Schedule K-1-P(2) for more information.
What does taxable in other states mean?
Taxable in other states means you are subject to and pay "tax" in another state. "Tax" includes net income tax, franchise tax measured by net income, franchise tax for the privilege of doing business, and corporate stock tax. 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.
When must I use Illinois Schedules K-1-P, K-1-P(3), and B?
You must use Illinois Schedule K-1-P to supply each shareholder 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-P and a copy of the Illinois Schedule K-1-P(2), Partner's and Shareholder's Instructions, to each shareholder. Do not file copies of Illinois Schedule K-1-P that you issue to your shareholders with your Form IL-1120-ST. However, you must keep a copy of each Illinois Schedule K-1-P with your tax records. See Illinois Schedule K-1-P(1), Instructions for Partnerships and S Corporations Completing Schedule K-1-P and Schedule K-1-P(3), for more information.
You must use Illinois Schedule K-1-P(3), Pass-through Withholding Calculation for Nonresident Members, to calculate the required tax you must report and pay on behalf of your nonresident shareholders who receive business or nonbusiness income from your S corporation.
You must complete the schedule if you have business or nonbusiness income distributable to Illinois nonresident shareholders who have not provided you with Form IL-1000-E. You are required to complete Schedule K-1-P(3) for each such shareholder and keep a copy of the completed schedule in your files. Do not submit Schedule K-1-P(3) to IDOR unless we request it from you. The information entered on this schedule will assist you in completing Illinois Schedule B. See Schedule K-1-P(1) for more information.
You must use Illinois Schedule B to supply us with a listing of your shareholders, certain items of income and credits they received from you, and pass-through withholding or PTE tax credit. You must complete all lines of Illinois Schedule B, as applicable, and file it with your Form IL-1120-ST.
What if I am a member of a unitary group?
If an S corporation is

unitary with a combined group and uses the same taxable year as the combined group, it should use the Schedule UB, Combined Apportionment for Unitary Business Group, prepared by the combined group in completing its Form IL-1120-ST;
unitary with a combined group, but it uses a different taxable year, it must complete a Schedule UB using its own taxable year; or,
not unitary with a group filing a combined return, it must complete its own Schedule UB using its own taxable year.

Unitary members that are S corporations can use the line reference chart in the Schedule UB instructions to help complete Form IL-1120-ST.
Steps 2 and 3 of each separately filed Form IL-1120-ST must be completed showing only the S corporation's separate-company items.
The amounts on each member's Form IL-1120-ST, Lines 14 through 21 (less Line 20) and Lines 23 through 33 (less Line 24), shall be the combined totals shown on Schedule UB, Step 3, Column E.
Note: The modifications for Form IL-1120-ST Lines 20 and 24 are not included as modifications on the Schedule UB. The amount on Form IL-1120-ST, Lines 20 or 24 must be computed on the Illinois Schedule B, Line E Worksheet, found in these instructions. Carry the combined total amounts from Schedule UB, Step 3, Column E for each line item of the Line E Worksheet.

Use the Line 20 and Line 24 amounts to compute the S corporation's base income on Form IL-1120-ST, Step 5, Line 35. Check the box on Form IL-1120-ST, Step 5, Line 35 B and complete Form IL-1120-ST, Step 6 by subtracting

on Line 36, the combined nonbusiness income of the entire unitary business group, minus the portion allocable to shareholders subject to replacement tax, and
on Line 37, the amount received by the entire unitary business group from non-unitary partnerships, partnerships included on the Schedule UB, S corporations, trusts, and estates, minus the portion allocable to shareholders subject to replacement tax.

On Form IL-1120-ST, Step 6, Line 40, include the everywhere sales amount from Schedule UB, Step 4, Column D, Line 2. On Line 41 of Step 6 of Form IL-1120-ST, include only the S corporation's Illinois sales. On Form IL-1120-ST, Step 6, Lines 44 and 45, include only the nonbusiness income of the S corporation, and the business income or loss apportionable to Illinois received by the S corporation from trusts, estates, non-unitary partnerships, partnerships included on the Schedule UB, and S corporations minus the portion of those amounts allocable to shareholders subject to replacement tax.
Schedules used to compute any amounts shown must be attached to Form IL-1120-ST.
If you need more information, visit our website at tax.illinois.gov and view the Illinois Income Tax Regulations referenced in these and the Schedule UB instructions.
What if I participated in a reportable transaction?
If you participated in a reportable transaction, including a "listed transaction," during this tax year and were required to disclose that transaction to the IRS, you are also required to disclose that information to Illinois. You must send us two copies of the form you used to disclose the transaction to the IRS.

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-1120-ST to:

ILLINOIS DEPARTMENT OF REVENUE

PO BOX 19053
SPRINGFIELD IL 62794-9053
If a payment is not enclosed, mail your Form IL-1120-ST to:

ILLINOIS DEPARTMENT OF REVENUE

PO BOX 19032
SPRINGFIELD IL 62794-9032

Specific Instructions

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

Step 1 — Identify your small business corporation

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 — If this is your first or final return, check the appropriate box and the box on Line 68 if you have a credit carry forward on your final return.
D — If you checked final return on Line C, answer the questions on Line D, if applicable.
E — Apportionment Formulas - If you earn income both inside and outside of Illinois, check the appropriate box(es). If you are a unitary business group, check as many boxes as applicable. If more than one box is checked, you must complete a Subgroup Schedule for each checked box that is not a sales company. If you earn income only inside Illinois, leave this line blank. For more information, see the specific instructions for "Apportionment Formulas."
F — If you are claiming a special depreciation addition or subtraction modifications on Form IL-1120-ST, check the box and attach Form IL-4562, Special Depreciation, to your tax return.
G — If you are claiming other addition or subtraction modifications on Form IL-1120-ST, check the box and attach Schedule M, Other Additions and Subtractions (for businesses), to your tax return.
H — If you are claiming related-party expenses modifications on your Form IL-1120-ST, check the box and attach Schedule 80/20, Related-Party Expenses, to your tax return.
I — Check the box if you are claiming deductions or credits listed on Illinois Schedule 1299-A, Tax Subtractions and Credits. You must check the box and attach Illinois Schedule 1299-A and any other required support listed on Schedule 1299-A to your tax return to support any deductions or credits you are claiming or passing to your shareholders.
J — If you are a unitary business group and completed Subgroup Schedule, check this box and attach Subgroup Schedule. See Subgroup Schedule and Schedule UB Instructions for more information.
K — 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.
L — Check this box if you elect to pay PTE tax in an amount equal to 4.95 percent (.0495) of the taxpayer's calculated net income for the taxable year on Line 61.
M — Check this box if you are paying Pass-through Entity (PTE) Tax and you annualized your income on Form IL-2220, Computation of Penalties for Businesses. Attach Form IL-2220.
N — Enter your entire federal employer identification number (FEIN). A partial FEIN will delay the processing of your return.
O — If you are a member of a group filing as a unitary business, check the box and enter the FEIN of the member who prepared Illinois Schedule UB, Combined Apportionment for Unitary Business Group. Attach Schedule UB to this return.
P — Enter your North American Industry Classification System (NAICS) Code. If you are unsure of your code, you can research the information at www.census.gov/naics or www.irs.gov.
Q — Enter your Illinois corporate file (charter) number assigned to you by the Illinois Secretary of State.
R — If you keep your accounting records in a location different from the address indicated on Line B, enter the city, the two-letter state abbreviation, and the ZIP Code for the location the records are kept.
S — If you are making the election to treat all of your income other than compensation as business income for this tax year, you must check the box on this line and enter zero on Step 6, Lines 36 and 44. This election must be made by the extended due date of this return.
Once made, the election is irrevocable.
T — If you are required to disclose reportable transactions and you have completed federal Form 8886 or federal Schedule M-3, Part II, Line 10, check the appropriate box and attach a copy of the federal form or schedule to this return. See "What if I participated in a reportable transaction?" for more information.
U — Check the box if you must adjust your loss or loss carryover due to Discharge of Indebtedness. For more information, see the instructions for Line 48 and the Loss Reduction Worksheet in these instructions and Schedule NLD instructions.
V — Check this box only if you have sales into Illinois and you are not required to allocate them because you are protected by Public Law 86-272. Complete Steps 1 through 7 of your Form IL-1120-ST.
Note: You must complete an IDOR-issued or previously approved Form IL-1120-ST 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 ordinary income or loss

Note: If you are a member of a unitary group, enter the figures on each line of Step 2 that reflect your separate company income. See "What if I am a member of a unitary group?" in the General Instructions.

Lines 1 through 5 — Enter the amount for each line item from the corresponding line(s) on your federal Form 1120S, Schedule K. Attach a copy of your federal return. See the chart below to determine the correct corresponding lines.
Form IL-1120-ST Federal Form 1120S, Schedule K Line 1 Line 1 Line 2 Line 2 Line 3 Line 3c Line 4 Lines 4, 5a, 6, 7, 8a Line 5 Line 9 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 6 — Include any items of income or loss from federal Form 1120S, Schedule K, that are not included on any other line of Step 2 or Step 3 of this Form IL-1120-ST.

Step 3 — Figure your unmodified base income or loss

Note: If you are a member of a unitary group, enter the figures on each line of Step 3 that reflects your separate company income. See "What if I am a member of a unitary group?" in the General Instructions.
Lines 8 through 10 — Enter the amount for each line item from the corresponding line on your federal Form 1120S, Schedule K. See the chart below to determine the correct corresponding lines.
Form IL-1120-ST Federal Form 1120S, Schedule K Line 8 Line 12a and 12b Line 9 Line 11 Line 10 Line 12c Line 11 — Include any items of expense

you are required to state separately to your shareholders, rather than include in ordinary income, and
that would be taken into account by an individual in computing his or her taxable income, and
that are not included on any other line of Step 2 or Step 3 of this Form IL-1120-ST.

Do not include any of the following items on this line:

net operating loss carryovers;
any qualified business income deduction allowed under IRC Section 199A; or
any depletion amounts allowed federally on your oil and gas properties; and
any excess business interest expense under IRC Section 163(j).

Line 13 — This is your total unmodified base income or loss.
Note: If you are a member of a unitary group this amount should reflect your separate company income as shown on the corresponding column of Schedule UB, Step 2, Column A, B, or C, Line 30.

Step 4 — Figure your income or loss

Note: If you are a member of a unitary group, see "What if I am a member of a unitary group?" in the General Instructions, and the instructions for Line 14, below.
Line 14 — Follow the instructions on the form.
Note: If you are a member of a unitary group do not enter the amount from Form IL-1120-ST, Step 3, Line 13. Enter your combined company income as shown on Schedule UB, Step 2, Column E, Line 30.
Note: Do not enter negative amounts on Lines 15 through 21.
Line 15 — Enter the total of all amounts excluded from unmodified base income that were received or accrued as federally tax-exempt interest (e.g. state, municipal and other interest) and all distributions of exempt interest received from regulated investment companies during the tax year.
Line 16 — You must add back any amount of Illinois Replacement taxes and surcharge that you deducted on your federal Form 1120S to arrive at your ordinary business income. You are not required to add back taxes from other states taken as a federal deduction.
An S corporation that elects to pay PTE tax must add back the amount of that tax deducted federally, in addition to the add back for replacement tax deducted.
Line 17 — Enter the addition amount calculated on Form IL-4562, Step 2, Line 4. For more information, see Form IL-4562, Special Depreciation, and Instructions. Attach Form IL-4562 to your Form IL-1120-ST.
Line 18 — Enter the interest or intangible expenses paid to an 80/20 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 18 the total from Illinois Schedule 80/20, Related-Party Expenses, Step 2, Line 9. Attach Illinois Schedule 80/20 to your Form IL-1120-ST.

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 19 — If you are a partner in a partnership, a shareholder in an S corporation, or a beneficiary of a trust or an estate, include your distributive share of additions received from the partnership, S corporation, trust or estate 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 you received to your Form IL-1120-ST.
Note: The partnership or S corporation is required to send you an Illinois Schedule K-1-P and the trust or the estate is required to send you an Illinois Schedule K-1-T, 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-P you issued to your shareholders. You should keep copies of these schedules in your records.
Line 20 — Complete Illinois Schedule B. Illinois Schedule B, Section A, Line 3 represents the share of distributable income or loss that is to be added to or subtracted from base income. If the total amount on Illinois Schedule B, Section A, Line 3 is a negative amount (loss), it should be entered on Line 20 as a positive amount. See the Illinois Schedule B Instructions following these Specific Instructions for more information. Attach Illinois Schedule B to your Form IL-1120-ST.
Line 21 — Enter the addition amount calculated on Illinois Schedule M, Other Additions and Subtractions (for businesses), Step 2, Line 11.
Attach a copy of Illinois Schedule M to your Form IL-1120-ST. The following are examples of items that must be added to taxable income and are included on 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.
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. See Illinois Schedule NB, Nonbusiness Income, Line 11, and Illinois Schedule NB Instructions for more information.

Step 5 — Figure your base income or loss

Do not enter negative amounts on Lines 23 through 34.
Note: A double deduction is prohibited by IITA Section 203(g). You cannot deduct the same item more than once.
Line 23 — Enter the total interest received or accrued from federal Treasury bonds, notes, bills, federal agency obligations, and savings bonds included in ordinary business 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 24 — Complete Illinois Schedule B. Illinois Schedule B, Section A, Line 3 represents the share of distributable income or loss that is to be added to or subtracted from base income. If the total amount on Illinois Schedule B, Section A, Line 3 is a positive amount, enter that amount on Line 24. If the total amount on Illinois Schedule B, Section A, Line 3 is negative, leave Line 24 blank and see the instructions for Line 20. For more information, see the Illinois Schedule B Instructions following these Specific Instructions. Attach Illinois Schedule B to your Form IL-1120-ST.
Lines 25 through 29 — You must attach Illinois Schedule 1299-A and any other required support listed on Schedule 1299-A to your Form IL-1120-ST if you have an amount on any of the following lines.
Line 25 — Enter the River Edge Redevelopment Zone Dividend subtraction from Illinois Schedule 1299-A, Step 1, Line 3.
Line 26 — For financial organizations only — Enter the River Edge Redevelopment Zone Interest subtraction from Illinois Schedule 1299-A, Step 1, Line 12.
Line 27 — Enter the High Impact Business Dividend subtraction from Illinois Schedule 1299-A, Step 1, Line 6.
Line 28 — For financial organizations only — Enter the High Impact Business within a Foreign Trade Zone (or sub-zone) Interest subtraction from Illinois Schedule 1299-A, Step 1, Line 15.
Line 29 — Enter the amount of any Contribution subtraction from Illinois Schedule 1299-A, Step 1, Line 9.
Line 30 — Enter the subtraction allowance from Form IL-4562, Step 3, Line 19. Attach Form IL-4562 to your Form IL-1120-ST.
Line 31 — Enter the amount from Illinois Schedule 80/20, Step 4, Line 23. Attach Illinois Schedule 80/20 to your Form IL-1120-ST.
You should use Illinois Schedule 80/20 if

you added back interest paid to an affiliated company on Step 4, Line 18. You may subtract any interest received from that 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 18, 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.
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 32 — Enter your distributive share of subtractions passed through to you by a partnership, S corporation, trust, or estate on Schedule(s) K-1-P, Partner's or Shareholder's Share of Income, Deductions, Credits, and Recapture, or K-1-T, Beneficiary's Share of Income and Deductions. Do not include any amounts passed through that are reflected on Illinois Schedule 1299-A. Attach a copy of all Illinois
Schedules K-1-P and K-1-T you received to your Form IL-1120-ST.
Note: The partnership or S corporation is required to send you an Illinois Schedule K-1-P and the trust or the estate is required to send you an Illinois Schedule K-1-T, 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-P you issued to your shareholders. You should keep copies of these schedules in your records.
Line 33 — Enter the subtraction amount calculated on Illinois Schedule M, Step 3, Line 40. Attach a copy of Illinois Schedule M to your
Form IL-1120-ST.
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 ordinary income.
the refund of Illinois replacement tax for a prior year, to the extent included in your federal ordinary income.
any other income included on Step 4, Line 22, 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. For more information, see Illinois Publication 101.
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 deductions for "foreign dividend gross-up (IRC Section 78)," "subpart F income," or foreign dividends which are allowed as a subtraction modification under IITA Sections 203(b)(2)(G) and 203(b)(2)(O). You must provide supporting attachments clearly identifying each item taken as a subtraction.
contributions you made under the Tax Increment Allocation Redevelopment Act to a job training project. For more information, see FY Bulletin 1990-40.

Line 35 — This is your base income or loss.
Follow the instructions on the form and check a box on Line A or B. You must check one of these boxes and follow the instructions for that line.
Check the box on Line A if

all of your base income or loss is derived inside Illinois; and
you do not have any income or loss to report on Lines 36, 37, 44, or 45.

If you check the box on Line A, do not complete Step 6. All of your base income or loss is allocable to Illinois. Skip Step 6, enter the amount from Step 5, Line 35 on Step 7, Line 47, and complete the remainder of the return.
Check the box on Line B if any of the following apply:

your base income or loss is derived inside and outside Illinois;
all of your base income or loss is derived outside Illinois; or
you have income or loss to report on Lines 36, 37, 44, or 45.

If you check the box on Line B, you must complete all lines of Step 6. Submitting Form IL-1120-ST with an incomplete Step 6, including Lines 40, 41, and 42 may result in a delay in processing your return, further correspondence, and you may be required to submit further information to support your filing. See the Specific Instructions for Step 6 for more information.

Step 6 — Figure your income allocable to Illinois

You must check the box on Line B and complete all lines of Step 6 if any portion of Line 35, base income or loss, is derived outside Illinois, or you have any income or loss to report on Lines 36, 37, 44, or 45.
If you do not complete all of Step 6, Lines 36 through 46, we may issue a notice and demand proposing 100 percent of income as being allocable to Illinois, or in the case of a loss return, a notice indicating none of your loss as being allocated to Illinois.
In order to properly allocate your base income or loss you need to determine what portion of the total base income is business income or loss that is to be apportioned among all the states in which you do business, and what portion is nonbusiness income or loss that is to be allocated to a particular state.
Note: Unitary filers - You must complete both Step 4 of the Schedule UB and Step 6 of the Form IL-1120-ST.
Special Note: You must complete all lines of Step 6.
Line 36 — Enter the amount of all nonbusiness income or loss included in base income, net of any related deductions and any amount distributable to shareholders subject to replacement tax, from Illinois Schedule NB, Column A. Include any nonbusiness income you received from Illinois Schedules K-1-P or K-1-T in the amounts reported on Schedule NB. Attach Illinois Schedule NB and all Illinois Schedules K-1-P or K-1-T you received to your Form IL-1120-ST. If you do not have an amount to report on this line, enter zero.
Note: If you are making the election to treat all income other than compensation as business income for this tax year, you must check the box in Step 1, Line S, and enter zero here and on Line 44. This election must be made by the extended due date of this return. Once made, the election is irrevocable.
Line 37 — Enter the amount of all business income or loss included in base income received from any non-unitary partnership, partnership included on a Schedule UB, S corporation, trust, or estate of which you are a partner or a beneficiary, net of any amount distributable to shareholders subject to replacement tax. See Illinois Schedule K-1-P(2), Partner's and Shareholder's Instructions, or Schedule K-1-T(2), Beneficiary's Instructions for more information. Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your
Form IL-1120-ST. If you do not have an amount to report on this line, enter zero.

Note: The partnership or S corporation is required to send you an Illinois Schedule K-1-P and Schedules K-1-P(2) and the trust or the estate is required to send you an Illinois Schedule K-1-T and K-1-T(2) specifically identifying your share of income.
Special Note: If you are a partner engaged in a unitary business with your partnership, you must include your distributable share of the partnership's business income in your business income. Do not subtract this business income on Line 37.
Lines 40 through 42 —
You must complete Lines 40 through 42 if any of the following apply:

your business income or loss is derived inside and outside Illinois;
all of your business income or loss is derived outside Illinois; or
you have income or loss to report on Lines 36, 37, 44, or 45.

Follow specific instructions below for Lines 40 through 42.
Note: If you are a financial organization, transportation company, sales company, or federally regulated exchange, check the appropriate box in Step 1, Line E (financial organization, transportation company, sales company, or federally regulated exchange) and see "Apportionment Formulas" in these instructions.
Special Note: If you are a partner engaged in a unitary business with your partnership, you must include your distributive share of the "everywhere" and "Illinois" sales factors from the partnership in your "everywhere" and "Illinois" sales factors. For more information, see 86 Ill. Adm. Code Section 100.3380(d).
Line 40 — Enter your total sales everywhere.
Line 41 — Enter your total sales inside Illinois. If you have no sales in Illinois, enter zero.
Note: Lines 40 and 41 cannot be less than zero. The amount on Line 41 cannot exceed the amount on Line 40.
Line 42 — Divide Line 41 by Line 40 and enter the result, rounded to six decimal places. The result cannot be greater than one or less than zero.
Note: If you checked the box on Line 35B and do not complete Lines 40, 41, and 42 we may issue a notice and demand proposing 100 percent of your income as being allocated to Illinois, or in the case of a loss return, a notice indicating none of your loss as being allocated to Illinois.
Line 44 — Enter the amount of nonbusiness income or loss allocable to Illinois from Illinois Schedule NB, Column B. Include any nonbusiness income you received from Illinois Schedules K-1-P or K-1-T in the amounts reported on Schedule NB. This amount is net of the portion of your Illinois nonbusiness income distributable to shareholders subject to replacement tax. Attach a copy of Schedule NB and all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST. If you do not have an amount to report on this line, enter zero.
Note: If you checked the box in Step 1, Line S, making the election to treat all of your income other than compensation as business income, then enter zero on Line 44.
Line 45 — Enter the amount of the income or loss reported on Step 6, Line 37 that is apportionable to Illinois as reported by the non-unitary partnership, partnership included on a Schedule UB, trust, or estate on Illinois Schedules K-1-P or K-1-T, net of the portion distributable to shareholders subject to replacement tax. See Illinois Schedules K-1-P(2) or K-1-T(2) for more information. Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST. If you do not have an amount to report on this line, enter zero.

Step 7 — Figure your net income

Line 47 — 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 48 — If the amount on Line 47 is a loss, and you were required to reduce the net operating loss reported on your federal Form 1120S 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 47. Use the Loss Reduction Worksheet to figure your loss reduction. 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-1120-ST. For more information, see 86 Ill. Adm. Code Section 100.2310(c).
Loss Reduction Worksheet
1 Enter the amount of the reduction to your federal net operating losses from 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-1120-ST, Line 48. 3 __ 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 the return for the tax year of the debt cancellation.
Line 49 — If you have a discharge of indebtedness adjustment on Line 48, add lines 47 (a negative number) and 48 (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 48 and the amount from Line 47 on Line 49.

Line 50 — Enter your Illinois net loss deduction carryforward as determined on Illinois Schedule NLD, Step 1, Line 7, total box. Attach
Illinois Schedule NLD to your Form IL-1120-ST.
If you are a cooperative and you separate your patronage and nonpatronage income or loss, complete Schedule INL, Illinois Net Loss Adjustments for Cooperatives and REMIC Owners, and follow the instructions for computation of your Illinois net loss deduction.
If you are reporting losses from an entity or entities that you acquired during the filing period of this return or reporting previously unreported losses from prior acquisitions, check the box on Line 50 and,

if Line 50 is zero, attach a detailed statement to your return that includes: ○ the FEIN of the entity from which you acquired the loss, ○ the reason (e.g., merger) you are allowed to use that entity's losses, ○ the date you acquired the loss, ○ the tax period(s) the entity reported the loss(es) on their return(s), and ○ the amount of loss acquired.
if Line 50 is greater than zero, report the losses on page 2 of the Schedule NLD that you attach to your return.

Note: Each acquisition must be reported in detail separately. Do not report acquired losses that were previously reported.
Special Note: For more information, see the Schedule NLD instructions.

Step 8 — Figure your net replacement tax

Line 52 — Follow the instructions on the form.
Line 53 — Enter your recapture of investment credits from Illinois Schedule 4255, Recapture of Investment Tax Credits, Step 6, Column D, Line 22.
If you claimed an Illinois investment tax credit in a prior year on Form IL-477, Replacement Tax Investment Credits, 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 55 — 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-1120-ST.
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 by 1 percent (.01) or more 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 9 — Figure the taxes, surcharges, pass-through withholding, and penalty you owe

Line 57 — 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. For an S corporation, this would be a tax on built-in gain realized on the transaction.
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 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 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.
For more information, see 86 Ill. Adm. Code Section 100.2060.
Surcharge Worksheet for IL-1120-ST
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-1120-ST, Step 9, Line 57 and the Column B total on Form IL-1120-ST, Step 9, Line 58. 3 _ 3 _ Line 1 — Members of consolidated groups must enter the consolidated federal income tax liability of the affiliated group for the taxable year.
Line 2 — Members of consolidated groups must enter the federal income tax liability of the affiliated group for the taxable year computed as if the transactions subject to surcharge for which taxable income or gain was recognized in that taxable year had not been made.
Line 58 — 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 taxable gains 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;
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; or
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 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 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 in these instructions.
Line 59 — Complete all sections of Illinois Schedule B and enter the amount from Illinois Schedule B, Section A, Line 5 on this line. This is the amount of pass-through withholding you owe on behalf of your members. Attach Illinois Schedule B to your Form IL-1120-ST. See "Definitions to help you complete your Form IL-1120-ST" in these instructions for more information.
Note: Do not include any amount from Schedule B, Section B, Line K, PTE tax credit paid to members, or Line L, PTE tax credit received and distributed to members.
Note: Do not include on Line 59 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 10, Line 65c.
Line 60 — Complete this line if you elect to pay PTE tax on your calculated base income. Follow the instructions on the PTE Income Worksheet to determine the amount to enter on this line. The total amount of PTE credit allocated to shareholders cannot exceed the PTE liability reported and actually paid by the S corporation.
PTE Income Worksheet
1 Base Income from Line 35. 1 00
2 Amount from Line 24. 2 00
3 PTE base income. Add Lines 1 and 2. 3 00 4 Nonbusiness income or loss. 4 00 5 Business income or loss included in Line 3 from non-unitary partnerships, partnerships included on a Schedule UB, S corporations, trusts, or estates. 5 00 6 Add Lines 4 and 5. 6 00 7 Business income or loss. Subtract Line 6 from Line 3. 7 00 8 Total sales everywhere. This amount cannot be negative. 8 00 9 Total sales inside Illinois. This amount cannot be negative. 9 00 10 Divide Line 9 by Line 8. Round to six decimal places. 10 11 Business income or loss apportionable to Illinois. Multiply Line 7 by Line 10. 11 00 12 Nonbusiness income or loss allocable to Illinois. 12 00 13 Business income or loss apportionable to Illinois from non-unitary partnerships, partnerships included on a Schedule UB, S corporations, trusts, or estates. 13 00 14 PTE Income. Add Lines 11 through 13. Enter this amount on Line 60. 14 00

PTE Worksheet Instructions
Lines 1 through 3 — Follow the instructions on the worksheet.
Lines 4 and 12 — Complete a pro forma Illinois Schedule NB allocating nonbusiness income amounts to Illinois including the portion of nonbusiness income or loss distributable to shareholders subject to replacement tax reported from Form IL-1120-ST, Lines 20 and 24.
Line 5 through 11 — Follow the instructions for Form IL-1120-ST, Lines 37 through 43.
Line 13 — Follow the instructions for Form IL-1120-ST, Line 45, but do not include income from a partnership or S corporation that made the PTE election.
Line 61 — Enter the amount from Schedule B, Section A, Line 6. Do not include any PTE tax credit you received on Schedule(s) K-1-P or K-1-T on this line.
Note: If you complete Line 61, then Line 59 should be blank.
Special Note: The amount entered on Line 61 should be equal to the amount from Line 60 multiplied by 4.95% (.0495).
Line 63 — If you elected to pay PTE tax and your total tax liability is $500 or more, enter the amount of any self-assessed underpayment of estimated tax penalty you figured on Form IL-2220, Penalty Worksheet 1, Line 22.
If you annualized your income in Step 6 of Form IL-2220, be sure to check the box in Step 1, Line M of this Form IL-1120-ST. Attach a completed Form IL-2220 to your Form IL-1120-ST.

Note: If you do not need to annualize your income and do not wish to complete Form IL-2220, we encourage you to let us figure your penalties and interest and send you a bill instead of determining these amounts yourself. We will compute any penalty or interest due and notify you.

Step 10 — Figure your refund or balance due

Note: Do not include any PTE tax or PTE tax credit on Lines 65a through 65d. PTE tax is reported on Line 61 and PTE Tax credit is reported for each shareholder on Schedule B, Section B, Line L.
Line 65a — 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 65b — Enter the sum of any

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

Line 65c — Enter the amount you wish to claim 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 have 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 here. Attach copies of the
Schedules K-1-P and K-1-T you received from the pass-through entities to your Form IL-1120-ST.
Schedules K-1-P and K-1-T, Step 1, Line 3, must be completed or the pass-through withholding reported on this line may not be credited to your return.
Note: To claim Illinois pass-through withholding 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.
Special 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.
See "Definitions to help you complete your Form IL-1120-ST" in these instructions for more information.
Note: Do not include any pass-through withholding you owe on behalf of your members on this line. Pass-through withholding you owe on behalf of your members are included on Step 9, Line 59.
Line 65d — Enter the amount of any Illinois gambling and sports wagering winnings withholding shown on Forms W-2G.
Attach federal Forms W-2G.
Line 68 — Enter the amount of overpayment you elect to be carried forward to your next tax year. 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 C, 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 (March 16, 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 (March 16, 2026 for calendar-year filers), but is before the original filing and payment due date of the 2026 tax year (March 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 (March 15, 2027, for calendar-year filers), but is before the original filing and payment due date of the 2027 tax year (March 15, 2028, for calendar-year filers). Your credit will be applied against your 2027 tax year liability.
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 (March 16, 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 March 16, 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 March 16, 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.
Line 69 — 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 70 — 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 71 — Follow the instructions on the form. This is your amount of tax due that must be paid in full if $1 or more. If you are not paying electronically, complete Form IL-1120-ST-V, Payment Voucher for Small Business Corporation Replacement Tax, make your check or money order payable to "Illinois Department of Revenue", write your FEIN, tax year ending, and "IL-1120-ST-V" on your check or money order, and attach the payment and voucher to the front of the 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-1120-ST.
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 11 — 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.
Apportionment Formulas
Certain businesses that derive their income from inside and outside Illinois require an apportionment formula. The following definitions will help in completing Step 6.
A Business income — See General Information, "Business income" under "Definitions to help you complete your Form IL-1120-ST."
B Financial organization — Any bank, bank holding company, trust company, savings bank, industrial bank, land bank, safe deposit company, private banker, savings and loan association, building and loan association, credit union, currency exchange, cooperative bank, small loan company, sales finance company, investment company, or any person owned by a bank or bank holding company.
C Revenue miles — A revenue mile is the transportation of one passenger, or one net ton of freight, the distance of one mile.
D Federally regulated exchange — A federally regulated exchange is

a regulated entity as defined in 7 U.S.C. Sections 1a (40)(A), 1a (40)(B), or 1a (40)(C);
an exchange or clearing agency as defined in 15 U.S.C. Sections 78c (a)(1) or 78c (a)(23);
any entity regulated under any successor regulatory structure to a registered entity, exchange, or clearing agency; or
any member of the same unitary group if 50 percent or more of the business receipts of the unitary business group for the taxable year are attributable to the matching, execution, or clearing of transactions conducted by members of the group described in the first three bullet points above.

What if I am a sales company?
If you checked the box in Step 1, Line E, indicating that you are a sales company and your income is derived from inside and outside Illinois, you must also check Step 5, Box 35B. Apportion your business income as follows:
Include gross receipts from the license, sale, or other disposition of patents, copyrights, trademarks, and similar items of intangible personal property in the numerator and denominator of your sales factor only if these gross receipts are more than 50 percent of the total gross receipts included in gross income for this tax year and each of the two immediately preceding tax years.
Do not include the following items of income in the numerator or denominator of your sales factor:

dividends;
amounts included under IRC Section 78;
IRC Section 965 inclusion;
Net Controlled Foreign Corporation Tested Income (NCTI) or Global Intangible Low-Taxed Income (GILTI) under IRC Section 951A;
subpart F income as defined in IRC Section 952; and
any item of income excluded or deducted from base income.

For more information on what should be included in the numerator or denominator of your sales factor, see 86 Ill. Adm. Code Sections 100.3370 and 100.3380.
Sales of tangible personal property are in Illinois if

the property is delivered or shipped from anywhere to a purchaser in Illinois, other than the United States government, regardless of the Free on Board (f.o.b.) point or other conditions of the sale;
the property is shipped from Illinois to any place and the purchaser is the United States government; or
the property is shipped from Illinois to another state and you are not taxable in the state of the purchaser.

For radio and television broadcasting (including cable and satellite broadcasting), the following sales are in Illinois:

advertising revenue received from an advertiser whose headquarters is in Illinois;
fees received by a broadcaster from its viewers or listeners in Illinois;
in the case of fees received by a broadcaster from the producer or other owner of the contents of a program, the percentage of the fees equal to the percentage of the broadcast's viewing or listening audience located in Illinois; or
in the case of a person who owns the contents of a program and who provides the contents to a broadcaster for a fee or other charge, the fees received for that program from a broadcaster located in Illinois.

If the "sales everywhere" amount includes gross receipts from the licensing, sale, or other disposition of patents, copyrights, trademarks, and other similar items of intangible personal property, and the receipts are not covered by the broadcasting rules, then these receipts should be allocated in Illinois to the extent the item is used in Illinois during the year the gross receipts are included in gross income.
An item is used in Illinois if

a patent is employed in production, fabrication, manufacturing, or other processing in Illinois or if the patented product is produced in Illinois;
copyrighted material is printed or other publications originated in Illinois; or
the commercial domicile of the licensee or purchaser of a trademark or other item of intangible personal property is in Illinois.

Note: If you cannot determine from your (or related party's) books and records in which state an item is used, do not include the gross receipts from that item in the numerator or the denominator of the sales factor.
For sales of telecommunications services, the following sales are in Illinois:

sales of telecommunications service sold on a call-by-call basis, where the call both originates and terminates in Illinois, or the call either originates or terminates in Illinois and the customer's service address is in Illinois;
retail sales of postpaid telecommunications service if the point of origination of the signal is in Illinois;
retail sales of prepaid telecommunications service where the purchaser receives the prepaid card or other means of conveyance at a location in Illinois;
charges imposed at a channel termination point in Illinois;
charges for channel mileage between two channel termination points in Illinois;
charges for channel mileage between one or more channel termination points in Illinois and one or more channel termination points outside Illinois, times the number of channel termination points in Illinois divided by total termination channels;
charges for services ancillary to sales of services in Illinois. If you provide ancillary services, but cannot determine where the sales of the related services are located, your sales are in Illinois if your customer is in Illinois;
access fees charged to a reseller of telecommunication for a call that both originates and terminates in Illinois;
50 percent of access fees charged to a reseller of telecommunications services for an interstate call that originates or terminates in Illinois; and
end user access line charges, if the customer's service address is in Illinois.

For more information, see 86 Ill. Adm. Code Section 100.3371. Illinois lottery winnings and proceeds from sales or other transfers of rights to lottery winnings are in Illinois.
For taxable years ending on or after December 31, 2019, gross receipts from winnings from pari-mutuel wagering conducted at a wagering facility licensed under the Illinois Horse Racing Act of 1975 or from winnings from gambling games conducted on a riverboat or in a casino or organization gaming facility licensed under the Illinois Gambling Act are Illinois sales and must be included in the numerator of the sales factor.
For taxable years ending on or after December 31, 2021, payments from Illinois sources of wagering and winnings conducted in accordance with the Sports Wagering Act are allocable to Illinois.
Sales, other than sales of tangible personal property or telecommunications service, and gross receipts from broadcasting, or the licensing, sale, or other disposition of patents, copyrights, trademarks, and similar items of intangible personal property, or Illinois lottery winnings or sales proceeds, are in Illinois as follows:

sales or leases of real property in Illinois;
leases or rentals of tangible personal property, to the extent it is located in Illinois during the rental period;
interest, net gains, and other items of income from intangible personal property received by a taxpayer who is a dealer in that property from a customer who is a resident of Illinois (for individuals) or who is commercially domiciled in Illinois (for all other customers). A taxpayer without actual knowledge of the residence or commercial domicile of a customer may use the customer's billing address.
interest, net gains, and other items of income from intangible personal property received by a taxpayer who is not a dealer in that property, if the income-producing activity is performed in Illinois or if the income-producing activity is performed inside and outside Illinois, and a greater proportion of the income-producing activity is performed inside Illinois rather than outside Illinois, based on performance costs; or
in all other cases, if the services are received in Illinois.

Note: Gains and losses from sales or exchanges of shares in Subchapter S corporations or interest in partnerships (other than investment partnerships) are attributable to Illinois if those pass-through entities (PTEs) are taxable in Illinois. Gains and losses from sales or exchange of shares and of interests in pass-through entities, and which are considered business income, must be apportioned by multiplying the average of the PTE's apportionment factor for this year and the apportionment factors of the PTE's previous two tax years by the gains or losses from sales or exchanges of shares and of interests in pass-through entities. If the PTE filed a tax return for only one tax year prior to this year, use the average of the PTE's apportionment factors from this year's tax return and the prior year's tax return. If the PTE has no prior tax returns, use the PTE's apportionment factor from this year's tax return only. The result will be included in the amount reported on Line 41.
For more information, see 86 Ill. Adm. Code Section 100.3370.
What if I am a financial organization?
If you checked the box in Step 1, Line E, indicating that you are a financial organization and your income is derived from inside and outside Illinois, cross out the word "sales" on Lines 40 and 41, and write "Financial organization."
On Line 40, enter the amount of gross receipts from all sources.
On Line 41, enter the amount of gross receipts from

sales or leases of real property located in Illinois;
leases or rentals of tangible personal property, to the extent it is located in Illinois during the rental period;
interest income, commissions, fees, gains on disposition, and other receipts from: ○ loans secured by real or tangible personal property located in Illinois; ○ unsecured consumer loans to a resident of Illinois; ○ unsecured commercial or installment loans where the proceeds of the loan are applied in Illinois. If the place of application cannot be determined, the gross receipts are in Illinois if the office of the borrower from which the loan was negotiated is in Illinois. If neither the place of application nor the office of the borrower can be determined, do not include the gross receipts in Lines 40 or 41; and ○ credit card receivables billed to a customer in Illinois.
sales of travelers checks and money orders at a location in Illinois;
investment and trading income (which includes interest, dividends, net gains, and other income from investment and trading assets and activities) that is attributable to Illinois. To determine the amount of investment and trading income attributable to Illinois, multiply the total amount of investment and trading income by a ratio of: ○ the total Illinois sourced receipts excluding investment and trading income; to ○ the total receipts excluding investment and trading income.
any other transaction, if the gross receipts would be included on Line 41 under the general instructions for Line 41.

For more information, see 35 ILCS 5/304(c). Divide Line 41 by Line 40 and enter the result, rounded to six decimal places, on Line 42. Complete Lines 43 through 46 as indicated in Specific Instructions for Step 6 — Figure your income allocable to Illinois.
What if I am a transportation company?
If you checked the box in Step 1, Line E, indicating that you are a company that furnishes transportation service both inside and outside Illinois, cross out the word "sales" on Lines 40 and 41 and write "Transportation." You must apportion business income as follows:
A Transportation by airline — On Line 40, enter the amount of revenue miles everywhere. On Line 41, enter the amount of revenue miles in Illinois. Divide Line 41 by Line 40 and enter the result, rounded to six decimal places, on Line 42.
B Other modes of transportation — On Line 40, enter the amount of your gross receipts from providing transportation services. On Line 41, enter the amount of gross receipts from Illinois, as follows:

all gross receipts from transportation that both originates and terminates in Illinois; and
gross receipts from interstate transportation, multiplied by a fraction equal to the miles traveled in Illinois on all interstate trips divided by miles traveled everywhere on all interstate trips.

Divide Line 41 by Line 40 and enter the result, rounded to six decimal places, on Line 42.
C Transportation of both freight and passengers or transportation by airline and other modes — Compute separate fractions for freight transportation and passenger transportation by airline and for freight transportation and passenger transportation by all other modes of transportation under A and B, in the list above and enter on Line 42 the average of those fractions, weighted by the gross receipts from freight or passenger transportation by airline or other modes, rounded to six decimal places.
For more information, see 86 Ill. Adm. Code Section 100.3450. Complete Lines 43 through 46 as indicated in Specific Instructions for Step 6, Figure your income allocable to Illinois.

What if I am a federally regulated exchange?
If you checked the box in Step 1, Line E, indicating that you are a federally regulated exchange and your income is derived from inside and outside Illinois, cross out the word "sales" on Lines 40 and 41 and write "Exchange." You may apportion your business income as follows:
On Line 40, enter the amount of business income from all sources.
On Line 41, enter the amount of business income from

receipts attributable to transactions executed on a physical trading floor located in Illinois;
receipts attributable to all other matching, execution, or clearing transactions. This includes, without limitation, receipts from the provision of matching, execution, or clearing services to another entity. ○ Multiply this amount by 27.54 percent (.2754) for tax years ending on or after December 31, 2013; and
all other receipts for sales in Illinois.

Divide Line 41 by Line 40 and enter the result, rounded to six decimal places, on Line 42. Complete Lines 43 through 46 as indicated in Specific Instructions for Step 6, Figure your income allocable to Illinois.
Note: For any tax year, the Illinois apportionment percentage computed using this formula may never be less than the Illinois apportionment percentage computed for the first full tax year ending on or after December 31, 2013, for which the taxpayer used this formula.
What if I am a member of a unitary business group?
The term "unitary business group" means a group of persons related through common ownership, whose business activities are integrated with, dependent on, and contribute to each other. In the case of a corporation, common ownership is defined as the direct or indirect ownership or control of more than 50 percent of the outstanding voting stock of a corporation.
If you determine that you are a member of a unitary business group, see Illinois Schedule UB for more information regarding your Illinois filing requirements and the computation of your Illinois tax liability. Once the Illinois Schedule UB has been completed, you must apportion your business income as follows:
On Line 40, enter the "everywhere" sales factor of the entire unitary business group from Illinois Schedule UB, Step 4, Line 2, Column D. On Line 41, enter only your Illinois sales (including your share of sales of any unitary partnerships in which you are a partner).
On Lines 44 and 45, enter your own nonbusiness income and the Illinois portion of business income from non-unitary partnerships or partnerships included on a Schedule UB in which you are a partner, S corporations in which you are a shareholder, or from trusts or estates of which you are a beneficiary.
Note: Illinois requires the use of the "Finnigan" method of apportionment for unitary businesses. Under the "Finnigan" method, when calculating the apportionment numerator, a unitary group shall include all Illinois income or loss from all members of the unitary group as long as one or more members has nexus with Illinois. In addition, the numerator should also include any throwback sales from Illinois to a destination in which none of the unitary members have nexus or are taxable.
What if I want to use an alternative apportionment formula?
If the apportionment methods prescribed by IITA Sections 304(a) through (e), and (h) do not fairly and accurately represent the market for your goods, services, or other sources of business income, or lead to a grossly distorted result, you may want to use a more accurate alternative method. If you want to use an alternative apportionment method, you must receive permission from IDOR prior to filing your return.
Note: Your request for an alternative apportionment formula must follow the requirement of the 86 Ill. Adm. Code Section 100.3390. See the regulations or contact IDOR for more information.
If you receive permission to use an alternative formula, you must attach to your Form IL-1120-ST a copy of the letter granting permission.
Send your request to:

ILLINOIS DEPARTMENT OF REVENUE LEGAL SERVICES OFFICE

SENIOR COUNSEL - INCOME TAX, 5-500
101 WEST JEFFERSON STREET
SPRINGFIELD IL 62702 or email to: REV.GCO@illinois.gov
Illinois Schedule B Instructions

General Information

Read this information before completing Illinois Schedule B.
Amounts listed on the Schedule(s) K-1-P and Schedule(s) K-1-P(3), Pass-through Withholding Calculation for Nonresident Members, you complete are carried to your Illinois Schedule B and then reported on your Form IL-1120-ST. Therefore, you must complete Schedule(s) K-1-P and Schedule(s) K-1-P(3) before completing Schedule B.
In order to ensure you complete Schedule B correctly, do the following in order:

Complete all Schedule(s) K-1-P and Schedule(s) K-1-P(3), as applicable, for your shareholders before completing any section of Illinois Schedule B. The information reported on Schedule(s) K-1-P and Schedule(s) K-1-P(3) will be used to complete Illinois Schedule B. See Schedule K-1-P(1) for more information.
Complete Section B of Illinois Schedule B before completing Section A of Illinois Schedule B. Section B reports specific amounts from each Schedule K-1-P and Schedule K-1-P(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 B. 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 B, Section A, Line 3 and Line 5 to your Form IL-1120-ST as applicable.

See Schedule K-1-P(1) Instructions for Partnerships and S Corporations Completing Schedule K-1-P and Schedule K-1-P(3), and Illinois Schedule B specific instructions for more information.
What is the purpose of Illinois Schedule B?
The purpose of Illinois Schedule B, Partners' or Shareholders' Information, is for you to identify any person who was a shareholder at any time during your tax year.
The Illinois Schedule B also allows you to identify your shareholders 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 B required?
Yes. You are required to have a copy of this form on file. You must attach a copy to your Form IL-1120-ST, Illinois Small Business Corporation Replacement Tax Return to support

the addition modification claimed on Form IL-1120-ST, Step 4, Line 20,
the subtraction modification claimed on Form IL-1120-ST, Step 5, Line 24,
the pass-through withholding you owe on behalf of your nonresident members on Form IL-1120-ST, Step 9, Line 59,
the PTE tax you pay on Form IL-1120-ST, Step 9, Line 61, and
the PTE tax credit you received and distributed to your shareholders on Schedule(s) K-1-P.

Therefore, you must follow the instructions for Illinois Schedule B, 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.
Partnerships and S corporations must complete Illinois Schedule B. 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 B.
What do Section B, Lines G through J report?
Lines G through J report certain items of income, credits, and pass-through withholding you reported to your nonresident shareholders on the Schedule K-1-P you issued to them.
How do I determine the amounts to report in Section B, Lines G through J?
Before completing Illinois Schedule B you must complete Schedule(s) K-1-P and Schedule(s) K-1-P(3) for each of your nonresident shareholders, as applicable. The amounts reported on those schedules will be used to complete Illinois Schedule B, Section B, Lines G through J.
See Schedule K-1-P(1) for instructions and more information about Schedule K-1-P(3).
What do I report in Section B, Line K?
Line K is used to report the PTE tax credit you distribute to your shareholders if you elected to pay pass-through entity tax.

How do I determine the amounts to report in Section B, Line K?
Before completing Illinois Schedule B, Line K, you must determine each shareholder's portion of the PTE tax credit using the formula in the Schedule B, Section B, Line K instructions.
What do I report in Section B, Line L?
Line L is used to report the PTE tax credit you receive and distribute to your shareholders. Do not include any PTE tax you are paying on this line.
How do I determine the amounts to report in Section B, Line L?
Use the Schedule(s) K-1-P or K-1-T you received to determine the amount of PTE tax credit you received. Distribute the PTE tax credit based on each shareholder's share.

Specific Instructions

Section A: Total members' information
Note: Complete Schedule(s) K-1-P and Schedule(s) K-1-P(3), as applicable, and all of Illinois Schedule B, Section B, before completing Section A.
Illinois Schedule B, Section A should be completed using the totals from Illinois Schedule B, 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.
Lines 1 through 3 — Report amounts for both resident and nonresident shareholders.
Line 1 — Add the amounts you reported on Step 3, Column A, Line 10 through Line 19, of all the Schedule(s) K-1-P you issued to your shareholders and enter the total here. Include amounts you reported to both your resident and nonresident shareholders.
Line 2 — Add the amounts you reported on Step 7, Line 52a through Line 52ee, and Step 7, Lines 53a through 53b, of all the Schedule(s) K-1-P you issued to your shareholders and enter the total here. Include amounts you reported to both your resident and nonresident shareholders.
Line 3 — Add the amounts shown in Section B, Line E for all the shareholders for which you have checked the box in Section B, Line D.
Note: Do not include

shareholders that are identified as individuals or estates in Section B, Line B, or
grantor trusts or other disregarded entities whose grantor or owner is an individual or estate.

Enter the total amount on this line. If this is a

positive amount, enter this amount on your Form IL-1120-ST, Line 24.
negative amount (loss), enter this amount as a positive amount on your Form IL-1120-ST, Line 20.

Lines 4 through 5 — Report amounts for nonresident shareholders only.
Line 4a — Enter the total amount of pass-through withholding you reported on the Schedule(s) K-1-P you issued to your nonresident individual members only. Total the amounts reported in Section B, Line J, for shareholders that are identified with an "I" in Section B, Line B, and enter it here.
Line 4b — Enter the total amount of pass-through withholding you reported on the Schedule(s) K-1-P you issued to your nonresident estate members only. Total the amounts reported in Section B, Line J, for shareholders that are identified with an "M" in Section B, Line B, and enter it here.
Line 4c — Enter the total amount of pass-through withholding you reported on the Schedule(s) K-1-P you issued to your partnership and S corporation members only. Total the amounts reported in Section B, Line J, for shareholders that are identified with a "P" or "S" in Section B, Line B, and enter it here.
Line 4d — Enter the total amount of pass-through withholding you reported on the Schedule(s) K-1-P you issued to your nonresident trust members only. Include shareholders identified as an exempt organization (trust). Total the amounts reported in Section B, Line J, for shareholders that are identified with a "T" or "A" in Section B, Line B, and enter it here.
Line 4e — Enter the total amount of pass-through withholding you reported on the Schedule(s) K-1-P you issued to your C corporation members only. Include shareholders identified as an exempt organization (corporation). Total the amounts reported in Section B, Line J, for shareholders that are identified with a "C" or "N" in Section B, Line B, and enter it here.
Line 5 — Add Section A, Lines 4a through 4e of this Schedule B and enter this amount here and on Form IL-1120-ST, Line 59. The amount on Line 5 should match the total amount from Schedule B, Section B, Line J for all shareholders on all pages.
Lines 6 and 7 —
Line 6 — Add Section B, Line K for all shareholders of this Illinois Schedule B and enter the total here. Enter zero if you paid pass-through withholding.
Line 7 — Add Section B, Line L for all shareholders of this Illinois Schedule B and enter the total here. This amount should equal the total of all Schedule(s) K-1-P, Step 7, Line 53a and Schedule(s) K-1-T, Step 7, Line 50 you received. Attach copies of all Schedule(s) K-1-P and
K-1-T you received to your Form IL-1120-ST.
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: Members' information
Columns 1 through 3 —
Line A — Enter the name and address of each shareholder. Use the following examples as a guide.
If the shareholder 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 Street #5A
Anytown
IL 62666
If the shareholder 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 shareholder 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 each shareholder's entity type. Enter

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

Note: If this shareholder 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 entire Social Security number (SSN) or federal employer identification number (FEIN) of each shareholder.
Note: If the shareholder is a foreign entity and does not have an SSN or FEIN, leave this line blank for that shareholder. If you leave this line blank, you may be contacted for further information.
Line D — Check the box if the shareholder is subject to the Illinois Personal Property Tax Replacement Income Tax or is an exempt organization (including an Employee Stock Ownership Plan (ESOP)). Individuals, estates, or grantor trusts and other disregarded entities whose grantors or owners are individuals or estates are not subject to this tax.
Line E — Enter the total amount of base income or loss distributable to this shareholder, using the Line E Worksheet. Enter the amount from Line E Worksheet, Line 5, here.
The total of all the amounts in Line E must equal your total base income, computed without regard to the addition claimed on your Form IL-1120-ST, Step 4, Line 20, or the subtraction claimed on your Form IL-1120-ST, Step 5, Lines 24.
Line E Worksheet
Complete this worksheet for each shareholder.
1 Enter the share of income from Form IL-1120-ST, Line 14 for this shareholder. 1 _ 2 Enter the share of additions distributable to this shareholder from Form IL-1120-ST, Lines 15 through 19 and Line 21. 2 3 Add Lines 1 and 2. 3 4 Enter the share of subtractions distributable to this shareholder from Form IL-1120-ST, Lines 23 and 25 through 33. (Do not include Foreign Dividends from Schedule M, Line 25, that may be included on Form IL-1120-ST, Line 33) 4 _ 5 Subtract Line 4 from Line 3. If Line 3 is greater than Line 4 (income), Enter the result as a positive amount in Line E for this shareholder.
If Line 4 is greater than Line 3 (loss), enter the result as a negative amount in Line E for this shareholder. 5 __

Line F — If the shareholder was excluded from pass-through withholding indicate the reason by entering

"T" if you elect to pay PTE tax,
"R" if the shareholder is an Illinois resident,
"E" if the shareholder provided you a Form IL-1000-E, indicating that they would pay their own tax liability, or

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

"N" if the shareholder was an exempt organization and you did not make pass-through withholding payments on their behalf.

Note: Taxpayers are not required to make pass-through withholding payments on behalf of their exempt organization shareholders, but may do so for tax year ending on or after December 31, 2014.
If you elected to make pass-through withholding payments on behalf of an exempt organization shareholder, leave this line blank for that shareholder and complete Lines G through J.
Lines G through J — Provide the following information from the Schedule(s) K-1-P and Schedule(s) K-1-P(3) you completed for each shareholder listed.
Line G — Enter the amount you reported on Step 3, Line 12, of the Schedule K-1-P(3) you completed for this shareholder. This amount is this shareholder's share of Illinois income subject to pass-through withholding.
Note: This amount is a dollar amount. Do not list a percentage on this line.
Line H — Total the amount you reported on Step 3, Line 13, and Step 3, Line 16, of the Schedule K-1-P(3) you completed for this shareholder. Enter that amount on Line H for this shareholder. This amount is this shareholder's pass-through withholding before credits.
Line I — Total the amount you reported on Step 3, Line 14, and Step 3, Line 17, of the Schedule K-1-P(3) you completed for this shareholder.
Enter that amount on Line I for this shareholder. This amount is this shareholder's distributable share of credits.
Line J — Enter the amount of pass-through withholding that you made on behalf of each shareholder and reported to them on Schedule K-1-P, Step 7, Line 55. This should match the amount reported on Step 3, Line 19, of the Schedule K-1-P(3) you completed for this shareholder. This amount cannot be negative.
Note: This line should be blank if you elected to pay PTE tax.
Lines K and L - If the pass-through entity is itself a member in an electing pass-through entity, the credit for PTE tax paid by the electing pass-through entity passes through to its shareholders as follows

If the pass-through entity does not make the election to pay PTE tax, it will only be passing through each shareholder's distributive share of the PTE tax credit that it received on Schedule(s) K-1-P from electing pass-through entities in which it is a member (Line L).
If the pass-through entity does make the election to pay PTE tax, then it passes through to its shareholders both ○ the credit for the PTE tax it pays (Line K) and ○ each shareholder's distributive share of the PTE tax credit it received from electing pass-through entities in which it is a member (Line L).

Add each shareholder's Line K and Line L. Enter the total on each shareholder's Schedule K-1-P, Step 7, Line 53a.
Line K — Enter the shareholder's share of the PTE tax credit. To determine the share of PTE tax credit due for each shareholder, multiply the shareholder's distributive share of pass-through entity income reported on Form IL-1120-ST, Line 60, by 4.95 percent (.0495). This amount cannot be negative.
Special Note: The total credits allocated to all shareholders may not exceed the PTE amount actually paid to IDOR. If you overpaid your PTE liability, the overpayment may be refunded to the electing partnership or S corporation.
Include this amount on each shareholder's Schedule K-1-P, Step 7, Line 53a.
Note: This line should be blank if you made pass-through withholding payments.
Member's Schedule B,
Line E amount
×
Total
PTE tax paid
=
Member's share of PTE tax creditTotal of positive Schedule B, Line E amounts Line L — Enter each shareholder'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 shareholders in the same proportion that the pass-through income is distributed to your shareholders. Also include this amount on each shareholder's Schedule K-1-P, Step 7, Line 53a. This amount cannot be negative.
If you have more than three shareholders to report, and additional space is needed, complete and attach additional pages of Illinois Schedule B, Section B. After you have completed Section B, listing all required amounts for your shareholders, complete the single page of Illinois Schedule B, Section A.
Note: To avoid potential delays in processing, IDOR recommends that you add page numbers to Illinois Schedule B, 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-1120-ST,
you cannot file your annual tax return by the due date, and
you complete this worksheet and determine you owe a tentative tax.

If Line 7 of the worksheet shows you owe tentative tax, pay the full amount due either by filing and paying with Form IL-1120-ST-V or by making your payment electronically. An extension of time to file does not extend the amount of time you have to make your payment.
Reminder: Entities electing to pay PTE tax must make estimated payments if their total tax due is expected to be greater than $500. See Appendix C.
Extension Tax Payment Worksheet (for your records)
1 Enter the total tax you expect to owe for this tax year. 1 2 Enter the total amount of estimated tax payments or prepayments you made and any overpayment you elected to be credited for this tax year. 2 3 Enter any withholding reported to you and pass-through withholding (including any eligible investment partnership withholding) made on your behalf for this tax year. 3 4 Enter the amount of any previous tax payment you have made for this tax year. 4 5 Enter the estimated replacement tax investment credits. 5 6 Add lines 2 through 5 and enter the result here. 6 7 Subtract Line 6 from Line 1. This is your tentative tax due. Enter the result here and on Form IL-1120-ST-V. Pay this amount with your Form IL-1120-ST-V on or before the original due date of your return. 7
Extension Tax Payment Worksheet Instructions
Line 1 — Enter the total amount of replacement tax you expect to owe for this tax year (including recapture of investment credits using Schedule 4255, pass-through withholding payments you will owe on behalf of your shareholders or PTE tax you elect to pay on Schedule B, and surcharges from the Compassionate Use of Medical Cannabis Program Act and the sale of assets by gaming licensee).
Line 2 — Enter the total amount of estimated tax payments or prepayments you made and any overpayment you elected to be credited for this tax year.
Line 3 — Enter the total amount of Illinois income tax withheld on Form(s) W-2G and the amount of pass-through withholding (including any eligible investment partnership withholding) paid on your behalf and reported to you on Illinois Schedule(s) K-1-P or K-1-T.
Line 4 — Enter the amount of any previous tax payment you have made for this tax year.
Line 5 — Enter the amount of any estimated replacement tax investment credits from Form IL-477.
Line 6 — Add Lines 2 through 5. This is your total tax payments and credits.
Line 7 — Subtract Line 6 from Line 1. This is your tentative tax due. If Line 7 is $1 or more, you must pay the amount due. If Line 7 is less than $1, you do not have to pay. Do not attach your federal Form 7004 to your Form IL-1120-ST-V.
Note: Pay electronically at tax.illinois.gov or use Form IL-1120-ST-V, Payment Voucher for Small Business Corporation
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 - Pass-through Withholding Prepayment Worksheets
Use this worksheet to determine the amount to voluntarily prepay pass-through withholding on behalf of your shareholders.
Pass-through withholding prepayments are entirely voluntary; however, we suggest that you make your prepayments in four equal installments during the course of a year.
Note: Use Appendix C to prepay your own estimated tax liability, including PTE tax.
Special Note: If you elect to file and pay PTE tax, do not use this worksheet. Taxpayers electing to file and pay PTE tax cannot report and pay pass-through withholding for their shareholders.
Check the following boxes to determine which worksheets you should complete. (You may check multiple boxes.) 1 If you have nonresident individual and estate shareholders 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 shareholders 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 shareholders that you wish to voluntarily prepay pass-through withholding on behalf of, check this box and complete Worksheet 3 4 If you have corporation shareholders that you wish to voluntarily prepay pass-through withholding on behalf of, check this box and complete Worksheet 4 Once the worksheets are complete, add the total from each worksheet:
Worksheet 1, Line 9
Worksheet 2, Line 9
Worksheet 3, Line 13
Worksheet 4, Line 13
TOTAL
This is the amount of each of your voluntary quarterly prepayments for pass-through withholding. Add this total to the amount from Appendix C, Step 3, Line 27 to determine your voluntary quarterly prepayments to be made with Form IL-1120-ST-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-1120-ST-V to mail your payment.
Failure to use the correct voucher for your pre-payments may result in your payment being misapplied, penalties and interest, a delay in the processing of your return, or a delay in the generation of any overpayment.
Worksheet 1: Figure your pass-through withholding prepayments for nonresident individual and estate shareholders. If you have nonresident individual and estate shareholders 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 shareholders' 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 shareholders' share of nonbusiness income allocable to Illinois expected in the tax year (cannot be less than zero). 2 3 Add Lines 1 and 2 and enter the result. 3 4 Multiply Line 3 by 4.95 percent (.0495) and enter the result. 4 5 Enter the amount of Illinois income tax credits expected in the tax year to be passed to the shareholders whose income is included on Lines 1 or 2. 5 6 Subtract Line 5 from Line 4 and enter the result. 6 7 Enter the amount of surcharge from the sale of assets by gaming licensee passed through to you and distributed to nonresident individual and estate shareholders. 7 8 Add Lines 6 and 7. 8 9 Divide Line 8 by 4. This is the amount of each of your voluntary prepayments for nonresident individual and estate shareholders. 9

Appendix B - continued
Worksheet 2: Figure your pass-through withholding prepayments for partnership or S corporation shareholders. If you have partnership or S corporation shareholders 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 shareholders' 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 shareholders' share of nonbusiness income allocable to Illinois expected in the tax year (cannot be less than zero). 2 3 Add Lines 1 and 2 and enter the result. 3 4 Multiply Line 3 by 1.5 percent (.015) and enter the result. 4 5 Enter the amount of Illinois replacement tax investment credits expected in the tax year to be passed to the shareholders whose income is included on Lines 1 or 2. 5 6 Subtract Line 5 from Line 4 and enter the result. 6 7 Enter the amount of surcharge from the sale of assets by gaming licensee passed-through to you and distributed to partnership and S corporation shareholders. 7 8 Add Lines 6 and 7. 8 9 Divide Line 8 by 4. This is the amount of each of your voluntary prepayments for partnership or S corporation shareholders. 9 Worksheet 3: Figure your pass-through withholding prepayments for nonresident trust shareholders. If you have nonresident trust shareholders 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 shareholders' share of business income apportioned to Illinois expected in the tax year (cannot be less than zero). 1 2 Enter your nonresident trust shareholders' share of nonbusiness income allocable to Illinois expected in the tax year (cannot be less than zero). 2 3 Add Lines 1 and 2 and enter the result. 3 4 Multiply Line 3 by 1.5 percent (.015) and enter the result. 4 5 Enter the amount of Illinois replacement tax investment credits expected in the tax year to be passed to the shareholders whose income is included on Lines 1 or 2. 5 6 Subtract Line 5 from Line 4 and enter the result. 6 7 Multiply Line 3 by 4.95 percent (.0495) and enter the result. 7 8 Enter the amount of Illinois income tax credits expected in the tax year to be passed to the shareholders whose income is included on Lines 1 or 2. 8 9 Subtract Line 8 from Line 7 and enter the result. 9 10 Add Line 6 and Line 9 and enter the result. 10 11 Enter the amount of surcharge from the sale of assets by gaming licensee passed-through to you and distributed to nonresident trust shareholders. 11 12 Add Lines 10 and 11. 12 13 Divide Line 12 by 4. This is the amount of each of your voluntary prepayments for nonresident trust shareholders. 13

Appendix B - continued
Worksheet 4: Figure your pass-through withholding prepayments for corporation shareholders. If you have corporation shareholders 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 shareholders' share of business income apportioned to Illinois expected in the tax year (cannot be less than zero). 1 2 Enter your corporation shareholders' share of nonbusiness income allocable to Illinois expected in the tax year (cannot be less than zero). 2 3 Add Lines 1 and 2 and enter the result. 3 4 Multiply Line 3 by 2.5 percent (.025) and enter the result. 4 5 Enter the amount of Illinois replacement tax investment credits expected in the tax year to be passed to the shareholders whose income is included on Lines 1 or 2. 5 6 Subtract Line 5 from Line 4 and enter the result. 6 7 Multiply Line 3 by 7 percent (.07) and enter the result. 7 8 Enter the amount of Illinois income tax credits expected in the tax year to be passed to the shareholders whose income is included on Lines 1 or 2. 8 9 Subtract Line 8 from Line 7 and enter the result. 9 10 Add Line 6 and Line 9 and enter the result. 10 11 Enter the amount of surcharge from the sale of assets by gaming licensee passed-through to you and distributed to corporation shareholders. 11 12 Add Lines 10 and 11. 12 13 Divide Line 12 by 4. This is the amount of each of your voluntary prepayments for corporation shareholders. 13
Appendix C - Estimated Payment and Prepayment Worksheet
Instructions
If you elect to file and pay PTE tax and reasonably expect your total tax liability, including replacement tax and PTE tax, to exceed $500 after Illinois tax credits and withholding payments made on your behalf, you are required to make estimated payments. Estimated Payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. Complete Steps 1, 2, and 3 of this worksheet to compute your next tax year's estimated tax payments.
If you elect to file and pay PTE tax but you do not expect your tax liability, including replacement tax and PTE tax, to exceed $500, you may voluntarily prepay next year's taxes including PTE tax. Complete Steps 1, 2, and 3 of this worksheet to determine the amount of your quarterly prepayment.
If you do not elect to file and pay PTE tax, you may voluntarily prepay next year's tax liability. Complete Steps 2 and 3 of this worksheet to determine the amount of your quarterly tax liability prepayment. If you completed Appendix B, add the total from Step 3 to the total amount from Appendix B to determine your quarterly prepayments to be made with Form IL-1120-ST-V.
If your income or your original estimated tax changes during the year, complete Step 4 of this worksheet to determine your adjusted payment.
Note: Keep this record for your files.
Note: Pay electronically at tax.illinois.gov or use Form IL-1120-ST-V to mail your payment.
Failure to use the correct voucher for your estimated payments or prepayments may result in your payment being misapplied, penalties and interest, a delay in the processing of your return, or a delay in the generation of any overpayment.

Appendix C - continued

Step 1 - Figure your PTE Tax - Complete Step 1 only if you are filing and paying PTE tax.

1 Enter the amount of base income (Line 35) expected in the next tax year. 1 00 2 Enter the amount equal to the share of income distributable to a shareholder subject to replacement tax (Line 24) expected in the next tax year. 2 00 3 PTE base income. Add Lines 1 and 2. 3 00 4 Enter the amount of nonbusiness income or loss expected in the next tax year. 4 00 5 Enter the amount of business income or loss included in Line 4 from non-unitary partnerships, partnerships included on a Schedule UB, S corporations, trusts, or estates expected in the next tax year. 5 00 6 Add Lines 4 and 5. 6 00 7 Expected base income or loss. Subtract Line 6 from Line 3. 7 00 8 Enter the amount of total sales everywhere expected in the next tax year. 8 00 9 Enter the amount of total sales inside Illinois expected in the next tax year. 9 00 10 Divide Line 9 by Line 8. Round to six decimal places. 10 11 Business income or loss apportionable to Illinois expected in the next tax year.
Multiply Line 7 by Line 10. 11 00
12 Enter the amount of nonbusiness income or loss allocable to Illinois expected in the next tax year. 12 00 13 Enter the amount of business income or loss apportionable to Illinois from non-unitary partnerships, partnerships included on a Schedule UB, S corporations, trusts, or estates expected in the next tax year.
Do not include any income from a partnership or S corporation that will make the PTE election. 13 00 14 PTE Income. Add Lines 11 through 13. 14 00 15 PTE Tax. Multiply Line 14 by 4.95 percent (.0495). 15 00

Step 2 - Figure your Replacement Tax

16 Enter the amount of Illinois net income expected in the next tax year. 16 00 17 Multiply Line 16 by 1.5 percent (.015) and enter the result. 17 00 18 Enter the amount of recapture of investment credits expected in the next tax year. 18 00 19 Enter the amount of surcharge expected from the Compassionate Use of Medical Cannabis Program Act and the sale of assets by gaming licensee in the tax year. 19 00 20 Add Lines 17 through 19. Enter the result. 20 00 21 Enter the amount of Illinois tax credits expected in the next tax year as calculated on the corresponding Form IL-477 or Schedule 1299-A. 21 00 22 Enter the amount of pass-through withholding (including any eligible investment partnership withholding) expected to be made on your behalf in the next tax year on any Schedule K-1-P or Schedule K-1-T you receive. 22 00 23 Enter the amount of any Illinois gambling and sports wagering winnings withholding shown on the next tax year Form W-2G you expect to receive. 23 00 24 Add Lines 21 through 23. Enter the result. 24 00 25 Subtract Line 24 from Line 20 and enter the result. 25 00

Step 3 - Figure your Estimated Payments or Prepayments

26 If you completed Step 1, add Lines 15 and 25. Otherwise, enter the amount from Line 25. 26 00 27 Divide Line 26 by 4. This is the amount of your quarterly estimated payments or prepayments. 27 00

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

Appendix C - continued
Step 4 - Amended worksheet - Complete Step 4 if a change occurs in your original estimated tax.
1 Enter the amount of PTE income expected in the next tax year.
If you are not electing to file and pay PTE tax, enter zero. 1 2 PTE Tax. Multiply Line 1 by 4.95 percent (.0495). 2 3 Enter the amount of Illinois net income expected in the next tax year. 3 4 Multiply Line 3 by 1.5 percent (.015) and enter the result. 4 5 Enter the amount of recapture of investment credits expected in the next tax year. 5 6 Enter the amount of surcharge expected from the Compassionate Use of Medical Cannabis Program Act and the sale of assets by gaming licensee in the next tax year. 6 7 Add Lines 4 through 6 and enter the result. 7 8 Enter the amount of Illinois tax credits expected in the next tax year as calculated on the corresponding Form IL-477 or Schedule 1299-A. 8 9 Enter the amount of pass-through withholding (including any eligible investment partnership withholding) expected to be made on your behalf in the next tax year on any Schedule K-1-P or Schedule K-1-T you receive. 9 10 Enter the amount of any Illinois gambling and sports wagering winnings withholding shown on the next tax year Form(s) W-2G you expect to receive. 10 11 Add Lines 8 through 10 and enter the result. 11 12 Subtract Line 11 from Line 7 and enter the result. 12 13 Add Line 2 and 12. 13 14 Divide Line 13 by 4. 14 15 Multiply Line 14 by the number of previously due estimated payments. 15 16 Enter the amount of any estimated tax payments actually paid, timely prior year overpayments, timely pass-through withholding (including any eligible investment partnership withholding) and pass-through entity tax credit paid on your behalf, or timely Illinois gambling and sports wagering winnings withholding shown on Form W-2-G you received. 16 17 Subtract Line 16 from Line 15 and enter the result. This amount may be negative. 17 18 Add Lines 14 and 17 and enter the result.
If positive, this is the amount due on your next payment due date.
If zero or negative, the amount due on your next payment due date is zero.
If Line 18 is negative, continue to Line 19. Otherwise, stop here. 18 19 If Line 18 is negative, enter that amount as a positive number. 19 20 Subtract Line 19 from Line 14 and enter the result.
This is the amount due on the following due date, if applicable. 20
Note: Pay electronically at tax.illinois.gov or use Form IL-1120-ST-V to mail your payment.
Failure to use the correct voucher for your estimated payments or prepayments may result in your payment being misapplied, penalties and interest, a delay in the processing of your return, or a delay in the generation of any overpayment.

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-1120-ST — Small Business Corporation Replacement Tax Return

# General Information

# ILLINOIS DEPARTMENT OF REVENUE BULK SALES UNIT

# 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 small business corporation

# Step 2 — Figure your ordinary income or loss

# Step 3 — Figure your unmodified base income or loss

# Step 4 — Figure your income or loss

# Step 5 — Figure your base income or loss

# Step 6 — Figure your income allocable to Illinois

# Step 7 — Figure your net income

# Step 8 — Figure your net replacement tax

# Step 9 — Figure the taxes, surcharges, pass-through withholding, and penalty you owe

# Step 10 — Figure your refund or balance due

# ILLINOIS DEPARTMENT OF REVENUE

# Step 11 — Signature, date, and paid preparer's information

# ILLINOIS DEPARTMENT OF REVENUE LEGAL SERVICES OFFICE

# General Information

# Specific Instructions

# Step 1 - Figure your PTE Tax - Complete Step 1 only if you are filing and paying PTE tax.

# Step 2 - Figure your Replacement Tax

# Step 3 - Figure your Estimated Payments or Prepayments

General Information

ILLINOIS DEPARTMENT OF REVENUE BULK SALES UNIT

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 small business corporation

Step 2 — Figure your ordinary income or loss

Step 3 — Figure your unmodified base income or loss

Step 4 — Figure your income or loss

Step 5 — Figure your base income or loss

Step 6 — Figure your income allocable to Illinois

Step 7 — Figure your net income

Step 8 — Figure your net replacement tax

Step 9 — Figure the taxes, surcharges, pass-through withholding, and penalty you owe

Step 10 — Figure your refund or balance due

ILLINOIS DEPARTMENT OF REVENUE

Step 11 — Signature, date, and paid preparer's information

ILLINOIS DEPARTMENT OF REVENUE LEGAL SERVICES OFFICE

General Information

Specific Instructions

Step 1 - Figure your PTE Tax - Complete Step 1 only if you are filing and paying PTE tax.

Step 2 - Figure your Replacement Tax

Step 3 - Figure your Estimated Payments or Prepayments