Schedule 1299-C: Income Tax Subtractions and Credits (for individuals) (2024)

Who files this form

Schedule 1299-C is for individuals claiming the income tax subtractions and credits covered by this schedule. Attach it to Form IL-1040.

The schedule includes dividend subtractions for River Edge Redevelopment Zones and High Impact Businesses within a Foreign Trade Zone or sub-zone. It also includes worksheets for Research and Development, K-12 Instructional Materials and Supplies, and Adoption credits, plus a section for credits earned or carried forward.

What you'll need

Have the following forms and information available, as applicable:

• Form IL-1040: Your name, Social Security number, and amounts from Lines 14, 15, and 16.
• Schedule 1299-I and Schedule 1299-C Instructions: The form directs you to these for completion guidance and credit calculations.
• Your 2023 Schedule 1299-C, Step 3: Required to determine available credits carried forward to 2024.
• Schedules K-1-P or K-1-T: Attach these if claiming a distributive share of either dividend subtraction listed on the form.
• Dividend information: Corporation names, zone names, and dividend amounts.
• K-12 credit information: Illinois school name, Professional Educator License number if applicable, and qualified expenses paid in 2024.
• Adoption credit information: Each child's name, identifying number, birth date, Illinois residency and finalization information, qualified expenses, and Illinois Adoption credits previously claimed for that child. Nonresidents and part-year residents also need the decimal from Schedule NR, Line 48.

How to file

• Attach Schedule 1299-C to your Form IL-1040. If attaching it to an amended Form IL-1040-X, check the box provided.
• Enter the total dividend subtraction from Step 1, Line 7, on Schedule M, Line 24.
• Complete the Step 2 worksheets only if you earned those credits during the current tax year. Complete Step 2 before Step 3 when applicable.
• Follow the Schedule 1299-C Instructions to determine the credit on Step 3, Line 43, and enter that amount on Form IL-1040, Line 17.
• If you need more lines, attach a separate schedule in the same format with all required information. Complete Step 3, Line 43, only on Schedule 1299-C.

Common mistakes

• Leaving out required information or claiming a subtraction or credit that does not exist. The Department may contact you, disallow the subtraction or credit, or delay processing. The form also warns that failure to provide required information could result in a penalty.
• Not rounding figures to whole dollars. The form requires whole-dollar amounts.
• Carrying forward credits without checking the prior schedule. Use Step 3 of your 2023 Schedule 1299-C to determine what is available for 2024.
• Using an incomplete extra schedule. Any added schedule must use the same format and include all required information. Complete Step 3, Line 43, only on the main schedule.

Questions people ask

Can I use credits carried forward from a previous year?

Yes. The form directs you to Step 3 of your 2023 Schedule 1299-C to determine the available carryforward you may use on the 2024 schedule.

Who can use the K-12 Instructional Materials and Supplies worksheet?

The worksheet is for a teacher, instructor, counselor, principal, or aide who worked 900 or more hours in a K-12 school in Illinois. For the primary taxpayer and spouse separately, it uses the lesser of qualified expenses paid in 2024 or $500, then adds the two amounts.

Where do I report the total dividend subtraction?

Enter the total on Schedule 1299-C, Step 1, Line 7, and on Schedule M, Line 24.

What if I run out of lines for subtractions or credits?

Attach a separate schedule in the same format with all required information. Complete Step 3, Line 43, only on the main Schedule 1299-C.

Official sources

• https://taxarchive.illinois.gov/content/dam/soi/en/web/taxarchive/forms/income-tax/2024/individual/il-1040-schedule-1299-c.pdf