Schedule 1299-A: Tax Subtractions and Credits (for partnerships and S corporations) (2025)
Illinois · Illinois DOR · Used for tax years 2025
Illinois Schedule 1299-A is used by partnerships and S corporations to figure tax subtractions and credits and is attached to Form IL-1065 or IL-1120-ST. It reports specified dividend, contribution, and interest subtractions, along with credits earned, received through a distribu
Who files this form
Schedule 1299-A is for partnerships and S corporations reporting the tax subtractions and credits listed on the schedule. Attach it to Form IL-1065 or Form IL-1120-ST.
The 2025 schedule applies to tax years ending on or after December 31, 2025.
Some subtractions are limited to certain filers:
- The Contribution Subtraction is for Form IL-1120-ST filers only.
- The River Edge Redevelopment Zone and High Impact Business interest subtractions are for Form IL-1120-ST financial organizations only.
What you'll need
Have the following available, as applicable:
- Your Form IL-1065 or IL-1120-ST, the name shown on your return, your federal employer identification number (FEIN), and your tax year ending month and year.
- Schedule 1299-I, Income Tax Credits Information and Worksheets, and the Schedule 1299-A Instructions. The form directs you to these for completion details.
- Schedules K-1-P or K-1-T for distributive shares of the dividend subtractions. Attach these schedules.
- Schedules K-1-P for distributive shares of the contribution or interest subtractions. Attach these schedules.
- Corporation and zone names and dividend amounts for dividend subtractions; zone and organization names and contribution amounts for the Contribution Subtraction.
- Borrower, secured-property, investment-credit year, zone, property basis, loan amount, and interest information for interest subtractions.
- The credit information requested in Step 3, including credit codes, dates earned, applicable FEINs and certificate numbers, and earned, distributive-share, or transferred credit amounts.
How to file
Attach Schedule 1299-A to your Form IL-1065 or IL-1120-ST. The supplied form does not give a mailing address or e-filing directions.
To complete the schedule:
- Enter your name as shown on your return, FEIN, and tax year ending month and year.
- Figure your subtractions in Step 1 and carry each total to the return line printed beside that subtraction.
- Complete the Research and Development worksheet in Step 2 only if you earned that credit during your current tax year.
- List your credits in Step 3. Follow Schedule 1299-A Instructions and Schedule 1299-I for column details and where to list each owner's share on Schedule K-1-P.
- Include the required attachments for the subtractions you report.
Common mistakes
- Not rounding amounts: The form says all figures should be rounded to whole dollars.
- Leaving out items when you run out of lines: Attach a separate schedule in the same format with all required information.
- Completing Step 2 without a current-year credit: Complete this worksheet only if you earned the Research and Development credit during your current tax year.
- Providing incomplete credit information or claiming a credit that does not exist: The Department may contact you, disallow the credit, or delay processing your return.
- Omitting required information: The form warns that failure to provide required information could result in a penalty.
Questions people ask
Where do I report the River Edge Redevelopment Zone Dividend Subtraction?
Enter the total on Schedule 1299-A, Line 3, and on Form IL-1065, Line 28, or Form IL-1120-ST, Line 25.
Can a partnership use the Contribution Subtraction section?
That section is labeled for Form IL-1120-ST filers only. Its total goes on Form IL-1120-ST, Line 29.
How does the Research and Development worksheet calculate the credit?
Enter the amounts from Schedule 1299-I, Line 6 of the Research and Development Worksheet. Subtract base-period average expenses from this year's expenses. If the result is negative, enter zero. Multiply the result by 6.5% and enter it in Step 3, Column E, on the line with credit code 5340.
How do I total each credit in Step 3?
Add Column E, Credit Amount Earned; Column F, Distributive Share Credit from K-1-P; and Column G, Transferred Credit Amount. Enter the total in Column H.