Electronic Filing
Taxpayers who elected to have the Illinois Department of Employment Security withhold 2007 Illinois Income Tax from their unemployment compensation may file electronically starting this year.
If you are a first time IL-1040 filer you will have the option to file your 2007 income tax return using either the
tax preparation software or the
WebFile method. However, you must have an Illinois identification number or driver’s license number on file with the Illinois Secretary of State to file using these methods.
If you received an Illinois Schedule K-1-P, Partner’s or Shareholder’s Share of Income, Deductions, Credits, and Recapture, or Illinois Schedule K-1-T, Beneficiary’s Share of Income and Deductions, you will have the option to file your 2007 IL-1040 using either the tax preparation software or by using a tax professional and claim your Illinois distributive share of subtractions received from a partnership, S corporation, estate, or trust on Schedule M, Other Additions and Subtractions for Individuals.
Form IL-1040
You may subtract National Guard pay from any state on your Form IL-1040, if it is included in your federal adjusted gross income. Previously, only Illinois National Guard pay could be subtracted. See the
IL-1040 instructions for Line 6 instructions or
Publication 102, Illinois Filing Requirements for Military Personnel, for details.
The Illinois Earned Income Credit is now refundable for all taxpayers. If the credit amount exceeds the tax owed, the excess credit will be refunded. See the
IL-1040 instructions for Line 22 details.
Schedule M
Schedule M, Other Additions and Subtractions for Individuals, now includes an addition line for recapture of deductions for contributions to in-state college savings plans when funds are transferred to an out-of-state plan and a subtraction line for railroad unemployment income. In addition, earnings from out-of-state plans that meet certain disclosure requirements no longer have to be added back on Schedule M, Line 5.
See the
Schedule M instructions for details.
Schedule 1299-C
We added two income tax credits to Schedule 1299-C, Income Tax Subtractions and Credits (for individuals). The Ex-Felons Jobs Credit and the Veterans Jobs Credit have been added to Schedule 1299-C, Income Tax Subtractions and Credits (for individuals). See the
Schedule 1299-C instructions for details.
New Publication
We created a new publication to clarify the education expense credit.
Publication 132, Education Expense Credit General Rules and Requirements for Parents and Guardians, gives detailed information on this credit.
