Schedule CR (IL-1040): Credit for Tax Paid to Other States (2025)
Illinois · Illinois DOR · Used for tax years 2025
Illinois Schedule CR calculates the credit for income tax paid to other states and is attached to Form IL-1040. It reports income, adjustments, and taxes paid to other states to figure the credit.
Who files this form
For tax year 2025, you should file Schedule CR if all of these apply:
- You were an Illinois resident or part-year resident.
- 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 available to complete Schedule CR:
- Your Form IL-1040, including your name and Social Security number as shown on the return.
- Your federal Form 1040 or 1040-SR and Schedule 1 for the income and adjustment amounts requested.
- Your Schedule NR if you were a part-year resident.
- Returns filed with other states, cities, or local governments showing income tax paid on Illinois base income.
- Form W-2 if you are using city or local government withholding because no return was required for that tax.
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 attaching it to an amended Form IL-1040-X, check the box at the top of the schedule.
Enter the credit from Schedule CR, Line 55, on Form IL-1040, Line 15.
Keep your out-of-state tax returns and any Schedules K-1-P and K-1-T with your records unless the department requests them. The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Using W-2 withholding instead of tax from a filed return. Line 51 says to use the tax paid from the return filed with the other state, city, or local government. Use city or local government withholding from Form W-2 only when no tax return is required.
- Overlooking a reciprocal agreement. If you earned income in Iowa, Kentucky, Michigan, or Wisconsin, you may be covered by a reciprocal agreement. This applies only 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.
- Failing to keep supporting records. Keep out-of-state returns and any Schedules K-1-P and K-1-T. You must send them if requested.
- Leaving out required information. The form warns that failure to provide required information could result in a penalty.
Questions people ask
What counts as another “state” for this credit?
The term 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 a part-year Illinois resident use Schedule CR?
Yes, if the eligibility conditions are met. Part-year residents use the amounts from the equivalent lines of 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 the tax paid to other states entered on Line 51 and the amount calculated on Line 54. Enter that credit on Form IL-1040, Line 15.
Should I include cents?
The form calls for whole-dollar amounts. It also directs you to round the decimals on Lines 43 and 45 to three decimal places.
Do I need to send my out-of-state returns with Schedule CR?
The form says to keep your out-of-state tax returns and any Schedules K-1-P and K-1-T with your records. You must send them if the department requests them.