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Additions/Subtractions

Your Illinois income includes the adjusted gross income (AGI) amount figured on your federal return, plus any additional income that must be added to your AGI. Some of your income may be subtracted when figuring your Illinois base income.

Schedule M, Other Additions and Subtractions for Individuals, allows you to figure the total amount of additions you must include on Form IL-1040, Individual Income Tax Return, Line 3 and subtractions you may claim on Form IL-1040, Line 7.

Important for 2024 Bright Start 529 Contributions:  For the 2024 tax year only, taxpayers who made contributions to their Bright Start 529 account both before and after September 27, 2024, will need to enter the account number valid through September 27, 2024, and the account number valid from September 30, 2024, onward – along with the corresponding amounts contributed to each -- on the 2024 Schedule M. See BrightStart.com for more information.

You may not subtract anything that is not listed on Schedule M. For example, you may not subtract

  • unemployment compensation. Unemployment compensation included in your federal adjusted gross income, except railroad unemployment, is fully taxable to Illinois.
  • gambling losses. Illinois does not allow a deduction for gambling losses.
  • your federal itemized deductions from U.S. 1040 Schedule A, Itemized Deductions.
  • any wages reported on your federal return. If you believe the wages reported on the Form W-2, Wage and Tax Statement, you received from your employer are incorrect, you must obtain a corrected Form W-2 or a statement from your employer, on company letterhead, stating that your Form W-2 was incorrect. We will not accept a letter from you or your tax preparer.
  • Income received from Social Security benefits and retirement plans (including Illinois Teacher's Retirement) - Eligible retirement income should be subtracted on IL-1040, Line 5.
  • Out-of-state income - However, if you are filing as a resident or a part-year resident, you may be allowed to take a credit against Illinois income tax for income tax you paid to another state.  See the instructions for Form IL-1040, Line 15, and instructions for Schedule CR, Instructions for Credit for Tax Paid to Other States.