Form Il-941 - Information And Instructions

Form Il-941 - Information And Instructions - 2016 Page 3

Form IL-941 Information and Instructions

850.00

425.00

850.00

425.00

850.00

2,550.00

How do I use my Illinois Department of Commerce and Economic Opportunity (DCEO) credits?

DCEO credits should be claimed on Line 3 of your Form IL-941. We receive notification from DCEO and apply credits when

they become available. Do not claim these credits on your Form IL-941 until they are available for use per your tax credit cer-

tificate or your certificate of verification that you received from DCEO.

There are two different types of DCEO credits for Illinois withholding income tax:

•

Illinois Small Business Job Creation tax credit (ILSBJC) - This credit is applied to the first liability due after the tax

credit certificate is issued, and before any IL-501 payments you have made. The federal employer identification number

(FEIN) you use on your Form IL-941 must match the FEIN on the tax credit certificate you receive from DCEO.

•

Economic Development for a Growing Economy withholding tax credit (EDGE) - The EDGE credit is applied to the

first liability of the tax year following the Certificate of Verification year and is also considered before any IL-501 payments.

This credit is not common.

Please account for your credits when you plan your payments so that your account remains in balance. Even if you use a DCEO

credit, you still need to report the total amount you withheld from your employees or others on Step 4, Line 2 of Form IL-941.

Your DCEO credits are applied to your tax liability before your payments and your IDOR-approved credits. Make sure to claim

all of your payments for the quarter on Form IL-941, Step 5, Line 4. If you made payments that, when added with your DCEO

credit, resulted in overpayment of your withholding taxes, you must follow the instructions for “What is an IDOR-approved

credit?” for this amount to be verified as an IDOR-approved credit. The amount cannot be used for future withholding tax

liabilities until you receive this written verification. For additional information, contact Illinois DCEO.

IL-941 Instructions (R-12/16)

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Form Il-941 - Information And Instructions - 2016 Page 3