Schedule INL: Illinois Net Loss Adjustments for Cooperatives and REMIC Owners (2025)
Illinois · Illinois DOR · Used for tax years 2025
Illinois Schedule INL is attached to Form IL-1120 to figure Illinois net loss adjustments for cooperatives and REMIC residual interest owners. It includes cooperative elections for treating patronage and nonpatronage losses and calculations of Illinois income or loss.
Who files this form
Schedule INL is for cooperatives making Illinois net loss adjustments and REMIC residual interest owners figuring Illinois income or loss. It is attached to Form IL-1120.
- Cooperatives: Select “Cooperative Adjustments” in Step 1 and complete Steps 2 and 3, subject to the election rule below.
- REMIC residual interest owners: Select “REMIC Adjustments” in Step 1 and complete Step 4.
If a cooperative checks Step 2, Line 1a to allow patronage losses to offset nonpatronage income, it must not complete Step 3 or complete Schedule INL in subsequent years.
What you'll need
Have the following information available to complete the schedule:
- Form IL-1120: Schedule INL uses your name as shown on that return and amounts from several of its lines.
- Your federal employer identification number (FEIN) and the month and year your tax year ends.
- For cooperatives: Federal Form 1120-C, Schedule G, Line 10, or Form 8817, Line 29, plus patronage and nonpatronage income, loss, modification, and deduction amounts.
- For REMIC residual interest owners: Your recomputed federal taxable income and the Form IL-1120 amounts identified in Step 4.
How to file
Attach Schedule INL to your Form IL-1120.
Enter the year-ending month and year, your name as shown on Form IL-1120, and your FEIN. Check the box identifying cooperative or REMIC adjustments, then complete the applicable steps.
The supplied form does not give a mailing address or electronic filing directions.
Common mistakes
- Leaving out the first-year election: If you mark Step 2, Line 1, the form says to check either Line 1a or Line 1b.
- Continuing after choosing Line 1a: If you elect to allow patronage losses to offset nonpatronage income, do not complete Step 3 or complete this form in subsequent years.
- Continuing Step 4 when told to stop: If Step 4, Line 15 is positive or zero, stop. Do not complete the rest of the form.
- Omitting required information: The form warns that failure to provide required information could result in a penalty.
Questions people ask
What choice does a cooperative make in its first filing year?
In Step 2, mark Line 1 and choose whether to compute Illinois net income for all taxable years allowing patronage losses to offset nonpatronage income, or without allowing that offset.
Where do cooperatives report patronage and nonpatronage amounts?
Step 3 has separate columns: Column A for patronage and Column B for nonpatronage.
How should REMIC owners enter subtraction modifications?
Enter the total subtraction modifications from Form IL-1120, Line 22, as a negative number on Step 4, Line 4.
What does a negative amount on Step 4, Line 18 mean?
The form says a negative result is the amount you may use as a net loss deduction (NLD) carryforward in subsequent tax years.