How to Figure Illinois State Taxes Owed
If you are a resident of Illinois, you may owe state income tax in addition to federal income tax. As of 2011, Illinois had a flat tax rate of 5 percent for all income levels. Your federal tax Form 1040 should provide most of the income information you will need to file your Illinois state taxes using Form IL-1040.
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Instructions
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Locate a copy of your federal Form 1040. You must complete your federal taxes before you file your Illinois state taxes, since you need to transfer certain information directly from your federal return to your state return.
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Get a blank copy of the current year's Illinois state tax form, IL-1040. This is the form you will actually file with the Illinois Department of Revenue. You can get a copy on its website (see References), or if you intend to file electronically, your service provider should be able to provide you with the form.
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Transfer your income from your federal tax form to Form IL-1040. Enter your federal adjusted gross income figure on Line 1, and your federally tax-exempt income on Line 2. If you have other additions to your income, you must attach Schedule M and list the total amount on Line 3 (see References). Schedule M additions include less-common income items, such as the recapture of certain deductions.
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Adjust your income, if necessary. Section 3 of Form IL-1040 has instructions on how to determine your Illinois base income, based on a few possible adjustments.
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Take your exemptions. As with your federal taxes, the Illinois state tax form allows you to reduce your taxable income based on allowable state deductions known as exemptions.
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Calculate your preliminary tax. Multiply your net taxable income by the applicable tax rate. Prior to 2011, the tax rate was 3 percent. For 2011 and thereafter, the tax rate is 5 percent.
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Modify your tax due based on credits and payments. Follow the IL-1040 instructions after calculating your tax to adjust your net payment or refund based on payments you have already made, or credits that the form entitles you to, such as the earned income credit.
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