Illinois Schedule ICR - Illinois Credits Instructions

General Information 

What is the purpose of Schedule ICR? 

Schedule ICR, Illinois Credits, allows you to figure the total amount of property tax, K-12 education expense, and earned income credits you may claim on Form IL-1040, Individual Income Tax Return.

What must I attach to Form IL-1040? 

If you enter an amount on Form IL-1040, Line 17 or Line 28, you must attach Schedule ICR and any other required documentation listed in the “Step-by-Step Instructions” of this schedule to your Form IL-1040.

Am I eligible for a property tax credit? 

You may figure a credit for the Illinois property taxes you paid in 2011 on your principal residence (not a vacation home or rental property) for the time you owned and lived at the property during 2010, if that residence was in Illinois. Nonresidents of Illinois may not take this credit.

You may not figure a credit for mobile home privilege tax, penalties, or fees included in your property tax bill, or the portion of the property that is deductible as a business expense.

TIP: Illinois property you purchased - You may figure a credit for Illinois property you purchased during 2010 providing you figure only that portion of your taxes that pertains to the time you owned and lived at the property during 2010. You may not take a credit for taxes you paid if the seller reimbursed you at the time of closing. You also may not take a credit on your 2011 return for property you purchased in 2011.

TIP: Illinois property you sold - You may figure a credit for Illinois property you sold in 2011 by combining the 2010 property tax paid in 2011, as well as a portion of the 2011 tax paid based on the time you owned and lived at the property during 2011. You may not take a credit on your 2011 return for property sold during 2010.

For more information, see Publication 108, Illinois Property Tax Credit.

Am I eligible for a K-12 education expense credit? 

You may figure a credit for qualified education expenses, in excess of $250, you paid during 2011 if

  • you were the parent or legal guardian of a full-time student who was under the age of 21 at the close of the school year,
  • you and your student were Illinois residents when you paid the expenses, and
  • your student attended kindergarten (at a school that also has a first grade) through twelfth grade at a public or nonpublic school in Illinois during 2011.

You must complete Section B of Schedule ICR, including the K-12 Education Expense Credit Worksheet to claim this credit.

ATTACH: any receipts you received from your student’s school.

NOTE: If you home school your child(ren), see Publication 119, K-12 Education Expense Credit General Rules and Requirements for Home Schools.

ATTACH: receipts for education expenses.

NOTE: If you are the parents or legal guardians of a qualified student and you are filing separate Illinois returns, you may each claim an education expense credit. However, you both may not claim a credit for the same expenses, and the total amount of credit claimed between both parents or guardians may not exceed $500.

TIP: Qualified education expenses - Education expenses that qualify for this credit include

  • tuition (including summer school classes meeting elementary or secondary graduation requirements).
  • book fees covering the rental of books that were required as a part of the school’s education program.
  • lab fees covering the use of supplies, equipment, materials, or instruments that were required as part of a lab course in the school’s education program.
  • For example, if you rented a musical instrument from the school (not from a business)
    • for a class, or
    • for participation in an extracurricular activity that resulted in a credit toward completion of the school’s education program,
     

this rental expense qualifies as an education expense.

Education expenses that do not qualify for this credit include

  • expenses paid to a daycare, preschool, kindergarten at a school that does not also have a first grade, college, university, independent tutoring service, or trade school.
  • expenses paid for the purchase of supplies, books, or equipment that are not significantly used up during the school year (e.g., purchasing musical instruments, costumes for a play).
  • expenses paid for the use of supplies, equipment, materials, or instruments if the program does not result in a credit towards completion of the school’s education program.
  • expenses paid directly to a business (e.g., renting a musical instrument from a music store).
  • expenses for after school care, even if paid to the school.
  • expenses paid for yourself or your spouse.

For more details, see Publication 132, Education Expense Credit General Rules and Requirements for Parents and Guardians.

Am I eligible for the Illinois Earned Income Credit? 

If you qualified for a federal Earned Income Credit (EIC), you also qualify for the Illinois Earned Income Credit.

NOTE: If you filed a joint federal return and you elected to file separate Illinois returns because one spouse is an injured spouse, you may each claim the earned income credit. However, the total federal credit reported on Schedule ICR, Line 10a for both spouses cannot exceed the EIC amount claimed on your joint federal return.

What if I need additional forms or schedules? 

If you need additional forms or schedules,

  • visit our website at tax.illinois.gov, or
  • call our 24-hour Forms Order Line at 1 800 356-6302.

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 website 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.

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 nonrefundable credit  

Lines 1 through 3 - Follow the instructions on the form.

Section A: Illinois Property Tax Credit  

Line 4a - Write the total amount of Illinois Property Tax paid during the tax year for the real estate that includes your principal residence.

Line 4b - Write the property number, sometimes called “property index number,” “parcel number,” or “permanent number” for the property listed on Line 4a.

NOTE: If you and your spouse each have a principal residence and have included the property tax paid on both residences in Line 4a, enter the property number for the second residence on Line 4c.

Lines 4c and 4d - Write the property numbers for any adjoining lots to your principal residence, if used for residential purposes, for which you are claiming a property tax credit.

NOTE: Your property number is found near the top of your property tax bill or assessment notice. If your property taxes are paid through your mortgage, you may contact your lender for your property number.

You may also get this number from your county assessor’s office. A list of counties, with contact information, is under the “Individuals” section of our website.

Line 4e - Write the portion of your tax bill that is deductible as a business expense on U.S. income tax forms or schedules, even if you did not take the federal deduction.

Lines 4f through 6 - Follow the instructions on the form.

Section B: K-12 Education Expense Credit  

NOTE: You must complete the K-12 Education Expense Credit Worksheet on the back of Schedule ICR before completing this section.

Line 7a - Write the total amount of K-12 education expenses from Line 13 of the worksheet on the back of Schedule ICR.

Line 7c through 8 - Follow the instructions on the form.

ATTACH: any receipts you received from your student’s school.

Section C: Total Nonrefundable Credit 

Line 9 - Add Lines 5 and 8, and write this amount on Form IL-1040, Line 17.

Step 3: Figure your refundable credit 

Lines 10a through 10d - Follow the instructions on the form.

Line 11 - Write this amount on Form IL-1040, Line 28.

Section B Continued: K-12 Education Expense Credit Worksheet 

Lines 12a through 12j - Complete one line for each qualifying student, filling out Columns A through F by following the instructions on the form.

If a student attended more than one school during the tax year, please use a separate line for each school.

If you need more space, you may attach a separate piece of paper following this format.

Line 13 - Follow the instructions on the form to figure your qualified education expenses. Write the total on Step 2, Line 7a of Schedule ICR.