Schedule M IL-1040 Instructions

              What is the purpose of Schedule M?
Schedule M, Other Additions and Subtractions, 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 9.
May I subtract my out-of-state income?
No, you may not subtract your 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 19, and
Schedule CR, Credit for Tax Paid to Other States.
What other income is not allowed as a
subtraction?
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 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,
Page 1 of 4
Step-by-Step Instructions
Step 1: Provide the following information
Write your name and Social Security number as shown on your
Form IL-1040.
Step 2: Figure your additions for Form IL-1040, Line 3
Line 1 — Your child’s federally tax-exempt interest and
dividend income
Write the amount of any federally tax-exempt interest and dividends
earned by your child if you elected to report your child’s interest and
dividend income on U.S. Form 8814, Parents’ Election To Report
Child’s Interest and Dividends.
Line 2 — Distributive share of additions from a partnership,
S corporation, estate, or trust
Include your distributive share of additions received from a
partnership, S corporation, estate, or trust. The partnership,
S corporation, estate, or trust is required to notify you of your share
of this type of income. An Illinois entity will send you an Illinois
Schedule K-1-P, Partner’s or Shareholder’s Share of Income,
Deductions, Credits, and Recapture, or Illinois Schedule K-1-T,
Beneficiary’s Share of Income and Deductions, specifically
identifying your income.
a copy of Illinois Schedule K-1-P or Schedule K-1-T.
Line 3 — Medical Care Savings Account withdrawals
Include withdrawals made and interest earned, during the tax year,
from your Medical Care Savings Account that are not included in your
adjusted gross income on Form IL-1040, Line 1. Include this income
only if your withdrawals were for purposes other than those allowed
under the Medical Care Savings Account Act.
Line 4 — 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.
Line 5 — 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.
Do not include these earnings if they were rolled over
tax-free into another program.
Also, do not include earnings received from the “Bright Start” College
Savings Pool or the “College Illinois” Prepaid Tuition Program, which
are exempt from tax.
Schedule M Instructions (IL-1040) (R-12/05)
Illinois Department of Revenue
Schedule M IL-1040 Instructions
General Information
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.
What must I attach to Form IL-1040?
If you enter an amount on Form IL-1040, Line 3 or Line 9, you must
attach Schedule M and any other required documentation listed in
the “Step-by-Step Instructions” of this schedule to your Form IL-1040.
What if I need additional forms or schedules?
If you need additional forms or schedules,
visit our web site at tax.illinois.gov,
call our 24-hour Forms Order Line at 1 800 356-6302, or
write to us at P.O. Box 19010, Springfield, Illinois 62794-9010.
You may use our toll-free number to order forms 24 hours a day,
7 days a week.
What if I need additional assistance?
If you need assistance,
visit our web site at tax.illinois.gov,
call our Taxpayer Assistance Division at 1 800 732-8866 or
217 782-3336, or
call our TDD (telecommunications device for the deaf) at
1 800 544-5304.
Our office hours are 8 a.m. to 5 p.m. Monday through Friday.