2023 IL-1040 Schedule ICR Instructions

Important:

The Illinois Property Tax Credit is not allowed if the taxpayer’s adjusted gross income for the taxable year exceeds $500,000 for returns with a federal filing status of married filing jointly, or $250,000 for all other returns.

The K-12 Education Expense Credit is not allowed if the taxpayer’s adjusted gross income for the taxable year exceeds $500,000 for returns with a federal filing status of married filing jointly, or $250,000 for all other returns.

Schedule ICR, Illinois Credits, allows you to figure the total amount of property tax, K-12 education expense, and Volunteer Emergency Worker credits you may claim on Form IL-1040, Individual Income Tax Return.

If you enter an amount on Form IL-1040, Line 16, you must attach Schedule ICR and any other required documentation listed in the instructions of this schedule to your Form IL-1040.

You may figure a credit for the Illinois property taxes you paid in 2023 on your principal residence (not a vacation home or rental property) for the time you owned and lived at the property during 2022, if that residence was in Illinois. Nonresidents of Illinois may not take this credit.

You may not figure a credit for mobile home privilege tax, penalties, or fees included in your property tax bill, or the portion of the property tax that is deductible as a business expense.

You may figure a credit for Illinois property you purchased during 2022 providing you figure only that portion of your taxes that pertains to the time you owned and lived at the property during 2022. You may not take a credit for taxes you paid if the seller reimbursed you at the time of closing. You also may not take a credit on your 2023 return for property you purchased in 2023.

You may figure a credit for Illinois property you sold in 2023 by combining the 2022 property tax paid in 2023, as well as a portion of the 2023 tax paid based on the time you owned and lived at the property during 2023. You may not take a credit on your 2023 return for property sold during 2022.

For more information, see Publication 108, Illinois Property Tax Credit.

You may figure a credit for qualified education expenses, in excess of $250, you paid during 2023 if

• you were the parent or legal guardian of a full-time student who was under the age of 21 at the close of the school year,
• you and your student were Illinois residents when you paid the expenses, and
• your student attended kindergarten through twelfth grade at a public or nonpublic school in Illinois during 2023.

You must complete Section B of Schedule ICR, including the K-12 Education Expense Credit Worksheet to claim this credit.

Education expenses that qualify for this credit include

• tuition (including summer school classes meeting elementary or secondary graduation requirements).
• book fees covering the rental of books that were required as a part of the school’s education program.
• lab fees covering the use of supplies, equipment, materials, or instruments that were required as part of a lab course in the school’s education program. For example, if you rented a musical instrument from the school (not from a business) for a class, or for participation in an extracurricular activity that resulted in a credit toward completion of the school’s education program, this rental expense qualifies as an education expense.

Education expenses that do not qualify for this credit include expenses paid

• to a daycare, preschool, college, university, independent tutoring service, or trade school.
• for the purchase of supplies, books, or equipment that are not significantly used up during the school year (e.g., purchasing musical instruments, costumes for a play).
• for the use of supplies, equipment, materials, or instruments if the program does not result in a credit towards completion of the school’s education program.
• directly to a business (e.g., renting a musical instrument from a music store).
• for after school care, even if paid to the school.
• for yourself or your spouse
  

For more details, see Publication 132, Education Expense Credit General Rules and Requirements for Parents and Guardians.

You may figure a credit of $500 for being a Volunteer Emergency Worker only if you received a 2023 Volunteer Emergency Worker Credit Certificate.

The volunteer emergency worker credit is a non-refundable credit that can be used to reduce your Illinois individual income tax liability. The credit is awarded in February to volunteer emergency workers that apply for, qualify for, and are awarded the credit. The aggregate amount of all tax credits awarded by the Department in any calendar year may not exceed $5,000,000. Credits shall be awarded on a first-come first-served basis.

A volunteer emergency worker is defined as a person who serves as a member, other than on a full-time career basis, of a fire department, fire protection district, or fire protection association that has a Fire Department Identification Number issued by the Office of the State Fire Marshal and who does not serve as member on a full-time career basis for another fire department, fire protection district, fire protection association, or government entity.

To qualify for the credit, each individual must

• have served as a volunteer emergency worker for at least 9 months during the taxable year.
• not receive compensation for his or her services as a volunteer emergency worker of more than $5,000 for the taxable year.
• submit a complete application with IDOR.
• be one of the first 10,000 qualified applicants.

• Visit our website at tax.illinois.gov for assistance, forms or schedules.
• 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.

Enter your name and Social Security number as shown on your Form IL-1040.

Lines 1 through 3 — Follow the instructions on the form.

Line 4a — Enter the total amount of Illinois Property Tax paid during the tax year for the principal residence that you own and any adjoining lots that are an extension of your primary residence.

To qualify for the property tax credit,

• your principal residence must have been in Illinois during the prior year,
• you must have owned your principal residence, and
• your property tax bill must have been paid during the taxable year.

Property taxes in Illinois are assessed on property in one year and paid in the next year.

Line 4b — Enter the name of the county and the property number, sometimes called “property index number,” “parcel number,” or “permanent number” for the property listed on Line 4a.

Lines 4c and 4d — Enter the name of the county and the property number(s) for any lots that you own and

• adjoin your principal residence,
• are an extension of your primary residence claimed on line 4b, and
• you included when calculating the total amount of property tax paid on Line 4a.

Line 4e — Enter the portion of your tax bill that is deductible as a business expense on U.S. income tax forms or schedules, even if you did not take the federal deduction.

Lines 4f through 6 — Follow the instructions on the form.

Line 7a — Enter the total amount of K-12 education expenses from Line 15 of the worksheet on the last page of Schedule ICR.

Lines 7c through 8 — Follow the instructions on the form.

Line 10a — Enter your Volunteer Emergency Worker Credit Certificate Number.

Line 10b — Enter your spouse’s Volunteer Emergency Worker Credit Certificate Number.

Line 10c — If either you or your spouse received the Volunteer Emergency Worker Credit, enter $500. If both you and your spouse received the credit, enter $1,000.

Lines 11 through 12 — Follow the instructions on the form.

Line 13 — Add Lines 5, 8, and 11, and enter this amount on Form IL-1040, Line 16.

Lines 14a through 14j — Complete one line for each qualifying student, filling out Columns A through G using the following instructions.

If a student attended more than one school during the tax year, please use a separate line for each school.

If you need more space, you may attach a separate piece of paper following this format.

Column A - Enter the first and last name of the student.

Column B - Enter the full Social Security number (or taxpayer identification number, if applicable) for the student listed in Column A.

Column C - Enter the student’s grade K-12 (kindergarten through twelfth grade).

Column D - Enter the name of the Illinois school the student attended during the year, or enter “home school,” if applicable.

Column E - Enter the name of the Illinois city where the school is located.

Column F - Indicate the type of school the student attended during the year. Check (one box only)

• “P” for public school
• “N” for non-public school
• “H” for home school

Column G - Enter the total amount of tuition, book fees, and lab fees paid at the school where the student is enrolled during the regular school year.

Line 15 — Follow the instructions on the worksheet to figure your qualified education expenses. Enter the total on Step 2, Line 7a of Schedule ICR.