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Category: Illinois

Illinois Additions to Income (Schedule M)

Special Depreciation Addition

Enter the amount of Special Depreciation calculated from Form IL-4562.
NOTE: Do not include your distributive share of any special depreciation addition from a partnership, S corporation, trust, or estate on this line. Your distributive share of additions should be included on Schedule M, Line 2.

Lloyds plan of operations loss

Add back any loss that you included in your adjusted gross income from a Lloyds plan of operation if that loss was reported on your behalf on Form IL-1023-C, Composite Income and Replacement Tax Return.

IRC Section 529 College Savings Plans Earnings

Include earnings distributed from IRC Section 529 college savings and tuition programs if these earnings are not included in your adjusted gross income on Form IL-1040, Line 1. Note: Do not include earnings if they were rolled over tax-free into another program.

Also, do not include earnings received from the following, which are exempt from tax:

  • "Bright Start” College Savings Pool
  • "Bright Directions” College Savings Pool
  • "College Illinois” Prepaid Tuition Program
  • Qualified IRC Section 529 tuition programs that comply with the College Savings Plans Network’s disclosure principles, and annually inform Illinois residents and those distributing the program that in-state programs exist.

Recapture of Deductions for Contributions to College Savings Plans transferred to an Out-of-State Plan

If you made a rollover from an Illinois plan to another state's plan, write the smaller of

  • the amount of deductions you claimed for amounts contributed to an Illinois college savings plan, minus any deductions recaptured in prior years, or
  • the amount you transferred during the tax year from the Illinois plan to an out-of-state plan.

Recapture of Deductions for Contributions to College Savings Plans withdrawn for Nonqualified Expenses or Refunded

If you withdrew funds or received a refund of contributions from a qualified tuition program, the funds were not used for qualified expenses at an eligible institutions, and the withdrawal or refund did not result from the death or disability of a beneficiary of the program, include the amount equal to the amount of deductions you claimed for contributions related to the nonqualified withdrawal or refund amount. Write the smaller of

  • the amount of deductions you claimed for amounts contributed to an Illinois college savings plan, minus any amount recaptured on Line 7 for this year and any deductions recaptured in prior years for that plan, or
  • the refund or amount you withdrew during the tax year that was not used for qualified expenses in an eligible institution plus any refund of contributions.

Credit for Student-Assistance Contributions

Include any amount equal to the credit you received on Schedule 1299-C, Income Tax Subtractions and Credits (for individuals), for student-assistance contributions made as an employer on behalf of your employees for this tax year. This credit amount is 25% of the contribution for each employee, but cannot exceed $500 per employee.

For additional information, please see the instructions for Illinois Schedule M