Schedule CR (IL-1040): Credit for Tax Paid to Other States (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule CR calculates the credit for income tax paid to other states. It reports income, adjustments, and taxes paid to determine the credit claimed on Form IL-1040.
Who files this form
You should file 2024 Schedule CR if all of these apply:
- You were an Illinois resident or part-year resident during the tax year.
- You paid income tax to another state on income earned while you were an Illinois resident.
- That income is included in your Illinois base income.
- You did not deduct the other state's income tax when figuring the federal adjusted gross income shown on your Illinois return.
Do not file this schedule if you were an Illinois nonresident for the entire year, or if you did not pay income tax to both Illinois and another state.
What you'll need
Have these documents available for the entries that apply to you:
- Your Form IL-1040, including your name and Social Security number.
- Your federal Form 1040 or 1040-SR and Schedule 1 for income and adjustment amounts.
- Your Schedule NR if you were a part-year resident.
- Tax returns filed with other states, cities, or local governments to determine the tax paid.
- Form W-2 if you are using city or local government withholding because no tax return was required.
Keep your out-of-state tax returns and any Schedules K-1-P and K-1-T with your records. Send them to the Illinois Department of Revenue if requested.
How to file
Attach Schedule CR to your Form IL-1040. If you are attaching it to an amended Form IL-1040-X, check the box at the top of Schedule CR.
Enter the credit from Schedule CR, Line 55, on Form IL-1040, Line 15.
Common mistakes
- Using W-2 withholding instead of tax from a filed return. For Line 51, use the state, city, or local income tax paid from the return filed with that government. Use city or local W-2 withholding only when no tax return is required.
- Overlooking reciprocal agreements. If you earned income in Iowa, Kentucky, Michigan, or Wisconsin, a reciprocal agreement may apply to wages, salaries, tips, and other employee compensation. The form directs you to the Schedule CR instructions.
- Skipping the instructions for income allocation. The form says to read the instructions before completing Step 2 and to read the Column B instructions for Step 3.
- Discarding supporting records. Keep your out-of-state returns and any Schedules K-1-P and K-1-T. You must provide them if requested.
Questions people ask
Does “another state” include cities or foreign countries?
For this schedule, “state” includes U.S. states, the District of Columbia, Puerto Rico, U.S. territories or possessions, and their political subdivisions, such as counties and cities. It does not include foreign countries.
Can part-year Illinois residents use Schedule CR?
Yes, if they meet the filing conditions. Part-year residents use the equivalent amounts from Schedule NR, Column B, for Step 2, Column A, and complete Step 5. Full-year residents skip Step 5.
How is the final credit determined?
Line 55 is the smaller of Line 51, the qualifying income tax paid to other states, and Line 54, the Illinois tax amount from Line 52 multiplied by the Schedule CR decimal. Enter that credit on Form IL-1040, Line 15.
Should I attach my out-of-state tax returns?
The form tells you to keep your out-of-state tax returns and any Schedules K-1-P and K-1-T with your records and send them if requested.