2014 Form Il-1040-X Instructions

ADVERTISEMENT

Illinois Department of Revenue
2014 Form IL-1040-X
Instructions
General Information
Should I file Form IL-1040-X?
If your amended return is filed incorrectly and additional
You should file Form IL-1040-X, Amended Individual Income Tax
liability is due, we must issue you a notice of deficiency within
Return, if you need to change a previously filed Form IL-1040,
two years from the date you filed Form IL-1040-X. If you fail to file
Individual Income Tax Return, due to a change that affects items used
an amended return when required, we may issue you a notice of
to figure your Illinois net income or credits.
deficiency at any time.
Your change can occur from a state change or a federal change, i.e.,
What if I have a net operating loss deduction?
an amendment of your federal income tax return,
In general, Illinois allows you to take the same NOL carryback or
an adjustment made by the Internal Revenue Service (IRS), or
carryforward deduction allowed on your federal income tax return. A
carryback deduction is a “federal change” that reduces your federal
any other recomputation or redetermination.
adjusted gross income on Step 2, Line 1. Check the box marked
You should file Form IL-1040-X only after you have filed a
“NOL” on Step 1, Line D, and indicate the date the IRS accepted your
processable Illinois Income Tax return. You must file a separate Form
carryback deduction. This will usually be the date on which the IRS
IL-1040-X for each tax year you wish to change. Do not file another
issued your refund check. You must file Form IL-1040-X within 2 years
Form IL-1040 with “amended” figures to change your originally filed
plus 120 days after that date to be eligible to receive a refund.
Form IL-1040.
Illinois does not allow you to deduct the same NOL twice. To prevent a
Do not file Form IL-1040-X if you are only changing
double deduction of your NOL when you have any NOL remaining to
your name, address, or Social Security number. Instead, forward
carry to a later year, your deduction for a tax year cannot be greater
this information to the address provided under ‘‘What if I need
than the federal NOL available for deduction in that year minus the
assistance?’’.
federal NOL available to carry to later years. This is the lesser of the
loss available in the year or the amount reported as “Modified Taxable
Which revision of Form IL-1040-X should I use?
Income” on federal Form 1045, Application for Tentative Refund,
To amend tax year 2008 or after, use the Form IL-1040-X for the year
Schedule B, Line 9.
you are amending. If you are amending your Form IL-1040 for 2007 or
Attach a copy of your federal Form 1045 Schedule B.
earlier, you must use the 10/08 revision of Form IL-1040-X (for 2007
If you are a resident in the year you are allowed a federal NOL
and earlier tax years).
deduction, Illinois allows you to deduct the entire amount even if
How long do I have to amend my return?
you were not a resident in the year the loss occurred. If you are a
nonresident or part-year resident in the year you are allowed the federal
The amount of time you have to amend your return depends on
NOL deduction, see the instructions for Step 3, Line 19, of Illinois Schedule
whether your Form IL-1040-X is being filed due to a state change or a
NR, Nonresident and Part-Year Resident Computation of Illinois Tax.
federal change.
Example: In tax year 2009, Paul Taxpayer, a nonresident individual,
State change only – If your change decreases the tax due to Illinois
has $20,000 in federal net losses from Partnership A and $180,000 in
and you want a refund, you must file an amended return (claim for
net losses from Partnership B. He has $100,000 in income from other
refund) within
sources, so his adjusted gross income for 2009 is a net operating loss
three years after the extended due date,
of $100,000. Federally, Paul Taxpayer carries the entire $100,000 loss
three years after the date your original return was filed, or
back to 2007.
one year after the date your Illinois tax was paid,
Ten percent of the $100,000 net operating loss deduction for 2007 is
whichever is latest.
attributable to Partnership A (Partnership A’s $20,000 loss in 2009 is
If your change increases the tax you owe to Illinois, you should file a
divided by the $200,000 in total losses incurred from partnerships in
Form IL-1040-X and pay the tax, penalty, and interest as soon as you
2009) and 90 percent of the net operating loss deduction is attributable
realize that it is owed.
to Partnership B. See the Schedule NR Instructions for Step 3,
Federal change (including NOLs) – If your federal change
Line 19, to determine the amount of each partnership’s net operating
decreases your Illinois tax, and you want a refund, you must file an
loss deduction amount that is allocated or apportioned to Illinois.
amended return (claim for refund) within two years plus 120 days of
What should I attach to Form IL-1040-X when
federal finalization.
claiming an NOL?
If your federal change resulted in an overpayment or if you
In order to support a refund claimed as a result of a finalized federal
claimed a net operating loss (NOL) carryback, you should not file
NOL carryback, you must attach the following information:
this form until you receive a federal finalization notification from the
IRS stating that they have accepted your change either by paying a
a copy of your U.S. 1040X, Amended U.S. Individual Income Tax
refund or by final assessment, agreement, or judgment.
Return, or U.S. 1045, and
a copy of your U.S. 1045 Schedule B, and
If your federal change increases your Illinois tax, you must file a
Form IL-1040-X and pay any additional tax within 120 days of the
a copy of any refund check and any other notification you received
federal finalization date (the date you filed your U.S. Form 1040-X and
from the IRS stating that they accepted the changes shown on
paid the tax due), or you may be assessed a late-payment penalty.
your U.S. 1040X or U.S. 1045.
Any Form IL-1040-X filed prior to the automatic extension date
You must complete and attach U.S. 1045 Schedule B, even if
will be considered a “corrected” rather than an amended return and
you did not file a U.S. 1045 for this year.
any penalties and interest may be refigured.
In addition, if you were a nonresident or part-year resident of Illinois in
In most cases, if you file an amended return after the extended due
the carryback year, you must also attach
date, any penalty for late payment of estimated tax will remain as
copies of the U.S. 1040, Pages 1 and 2, and Schedules C, E,
originally assessed.
and F filed for the loss year. Include supporting information that
You must file Form IL-1040-X, along with proper supporting
identifies the partnerships and S corporations (names and FEINs)
documentation, for both corrected and amended returns.
whose losses are included in Schedules C, E, and F and the
amount of loss incurred by each entity.
IL-1040-X Instructions (R-12/14)
Page 1 of 4

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 4