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Business or Farm Income Apportionment Formula (IAF) Worksheet
You must complete this worksheet if, while a nonresident of Illinois, you received business or farm income from both inside and outside of Illinois. If you have more than one source of business or farm income, make copies of this worksheet and prepare a separate worksheet for each line of the Schedule NR on which you reported business income.
Worksheet for Schedule NR, Line:
Column A
Total sales everywhere
Column B
Total sales in Illinois
Column C
Apportionment Factor
Column B ÷ Column A
1 Figure your apportionment factor.
2 Enter the amount of your business or farm income from Schedule NR, Column A.
3 Apportioned Income – Multiply Line 2 by the Line 1 decimal. Enter the result here and on the corresponding line on Schedule NR, Column B.
Keep a copy of this worksheet with your income tax records.
IAF Worksheet Instructions
Line 1: Apportionment factor
Column A
Enter the total amount of sales you received from both inside and outside Illinois.
Column B
Enter the total amount of sales you received in Illinois.
Column C
Divide Column B by Column A. Carry the decimal to six places. This is your apportionment factor.
Line 2: Business or farm income
Enter the amount of your business or farm income from the appropriate line on Schedule NR, Column A.
Line 3: Apportioned income
Multiply the amount of your business or farm income, Line 2, by the apportionment factor, Line 1 decimal. Enter the result on Line 3 and on the corresponding line of Schedule NR, Column B.
Note: If you need more detailed instructions, see the instructions for Form IL-1120, Corporation Income and Replacement Tax Return, Step 4. If your business income was derived from a transportation company, an insurance company, or a financial organization, see Form IL-1120 Specific Instructions for “Apportionment Formulas.”