Schedule 1299-C: Income Tax Subtractions and Credits (for individuals) (2025)
Illinois · Illinois DOR · Used for tax years 2025
Illinois Schedule 1299-C is an attachment to Form IL-1040 for individuals to calculate certain income tax subtractions and credits. It reports specified dividend subtractions, credits earned or carried forward, and the credit amount claimed for the year.
Who files this form
Schedule 1299-C is for individuals reporting the income tax subtractions and credits covered by the schedule. Attach it to Form IL-1040.
The schedule includes:
- River Edge Redevelopment Zone dividend subtractions.
- High Impact Business within a Foreign Trade Zone or sub-zone dividend subtractions.
- Income tax credits earned or carried forward.
Complete the Step 2 worksheets only if you earned one of the listed credits during the current tax year: Research and Development, K-12 Instructional Materials and Supplies, or Adoption.
What you'll need
Use the following forms and information, 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 2024 Schedule 1299-C, Step 3: Required to determine available credits carried forward to 2025.
- Schedules K-1-P or K-1-T: Attach these when reporting a distributive share of either dividend subtraction.
- 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 2025.
- Adoption credit information: Child information, qualified adoption expenses, and Illinois adoption credit previously claimed for each child. Nonresidents and part-year residents also use Schedule NR, Line 48.
How to file
- Attach Schedule 1299-C to your Form IL-1040. Check the box on the schedule if attaching it to amended Form IL-1040-X.
- Enter your total dividend subtraction from Step 1, Line 7, on Schedule M, Line 24.
- Complete Step 2 before Step 3 if a worksheet applies to you.
- Follow the Schedule 1299-C Instructions to determine the credit allowed on Step 3, Line 43. Enter that amount on Form IL-1040, Line 17.
- If you need more lines for subtractions or credits, attach a separate schedule in the same format with all required information. Complete Step 3, Line 43, only on Schedule 1299-C.
The supplied form text does not give a mailing address or e-filing directions.
Common mistakes
- Not rounding amounts: All figures should be rounded to whole dollars.
- Using an unchecked carryforward amount: Refer to your 2024 Schedule 1299-C, Step 3, to determine what is available for 2025.
- Leaving out information or claiming a nonexistent subtraction or credit: The Department may contact you, disallow the claim, or delay processing. The form also warns that failing to provide required information could result in a penalty.
- Handling extra entries incorrectly: Use an attached schedule in the same format with all required information, and complete Step 3, Line 43, only on the main schedule.
Questions people ask
Can I use credits carried forward from an earlier year?
Yes. The form directs you to your 2024 Schedule 1299-C, Step 3, to determine the available carryforward you may use on the 2025 schedule.
Who is the K-12 credit worksheet for?
It is for teachers, instructors, counselors, principals, or aides who worked at least 900 hours in a K-12 school in Illinois. The worksheet uses the lesser of qualified expenses paid in 2025 or $500 for each taxpayer or spouse.
Do I need to complete every worksheet in Step 2?
No. Complete Step 2 only if you earned one of its listed income tax credits during your current tax year.
Where do I report the final credit amount?
Follow the Schedule 1299-C Instructions to determine the amount for Step 3, Line 43. Enter that amount on Form IL-1040, Line 17.