Schedule CR (IL-1041): Credit for Tax Paid to Other States (2025)
Illinois · Illinois DOR · Used for tax years 2025
Illinois Schedule CR (IL-1041) calculates the credit for income tax paid to other states on income included in Illinois base income. It reports non-Illinois income, Illinois additions and subtractions, and the resulting income tax credit and, for trusts, replacement tax credit.
Who files this form
The form says you should file 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.
- You did not deduct that tax on federal Form 1041, Line 11, or you deducted it and added it back on Illinois Schedule M, Line 5.
- The base income taxed by the other state is included in your Illinois base income on Form IL-1041, Line 26.
You cannot use this schedule to claim a credit for the Michigan Single Business Tax.
What you'll need
Have your Form IL-1041, federal Form 1041, and out-of-state tax returns available to complete the schedule. You will also need your name as shown on Form IL-1041 and your federal employer identification number (FEIN).
Attach these to Form IL-1041:
- Completed Schedule CR.
- A copy of federal Form 1041, Page 1.
- A detailed breakdown of the amount on federal Form 1041, Line 11.
Keep your out-of-state tax returns with your records. You must send them if the Illinois Department of Revenue requests them.
How to file
Attach Schedule CR and the required federal Form 1041 information to your Form IL-1041.
Enter the income tax credit from Schedule CR, Line 59, on Form IL-1041, Step 6, Line 45. Trusts enter the replacement tax credit from Schedule CR, Line 60, on Form IL-1041, Step 5, Line 37.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Do not claim this credit unless Illinois and another state taxed the same income.
- If you deducted another state's income tax on federal Form 1041, Line 11, you must add it back on Illinois Schedule M, Line 5, to use this schedule.
- Read the instructions for Step 3, Column B, before completing that column. The form specifically requires this.
- Do not leave out the required attachments. Keep your out-of-state returns and provide them if requested.
- Provide the required information. The form warns that failure to do so could result in a penalty.
Questions people ask
Does “another state” include a foreign country?
No. It includes U.S. states, the District of Columbia, Puerto Rico, U.S. territories or possessions, and political subdivisions such as counties and cities. It does not include foreign countries.
Can a trust claim a replacement tax credit?
Yes. Line 60 is for trusts only. Subtract Line 59 from Line 58, entering zero if the result is negative. Transfer the result to Form IL-1041, Step 5, Line 37.
Do I attach my out-of-state tax returns?
The form says to keep them with your records and send them if requested.
What if I received employee compensation from Iowa, Kentucky, Michigan, or Wisconsin?
For employee compensation, such as salary received as income in respect of a decedent, the form directs you to the Form IL-1040 Schedule CR instructions for rules about states with reciprocal agreements.