Schedule NB: Nonbusiness Income (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule NB reports nonbusiness income, showing total amounts everywhere and amounts allocable to Illinois. It includes interest, dividends, rental income, royalties, capital gains or losses, and recaptured business expenses, with a worksheet for allocating recaptured bu
Who files this form
Schedule NB reports nonbusiness income and is attached to Form IL-1120, IL-1120-ST, or IL-1065. The form does not give more specific rules about who must file it.
What you'll need
Have the following information available to complete Schedule NB:
- Your name as shown on Form IL-1120, IL-1120-ST, or IL-1065, your federal employer identification number (FEIN), and your tax year-ending month and year.
- Nonbusiness income amounts for each listed category, both total everywhere and allocable to Illinois.
- If completing the recaptured business expense worksheet, your apportionment factors from this year’s return, last year’s return, and two years ago, if applicable.
How to file
- Enter your identifying information and year ending.
- Report nonbusiness income in Column A, “Total everywhere,” and Column B, “Allocable to Illinois.” Specify the income type for any amount on Line 10, “Other.”
- For recaptured business expense on Line 11, complete the apportionment factor worksheet to calculate Column B.
- Add Lines 1 through 11 for each column and enter the totals on Line 12.
- Attach Schedule NB to your Form IL-1120, IL-1120-ST, or IL-1065.
The form does not provide a mailing address or e-filing directions.
Common mistakes
- Skipping the instructions: The form says to read the instructions before completing it. No instructions were provided with this text.
- Skipping the Line 11 worksheet: The form says you must complete the apportionment factor worksheet to get the correct recaptured business expense amount for Column B.
- Overlooking the interest and dividend allocation rule: Interest and dividends are allocable to Illinois if your commercial domicile was in Illinois when they were paid or accrued.
- Leaving required information out: The form warns that failure to provide required information could result in a penalty.
Questions people ask
What is the difference between Columns A and B?
Column A reports the total everywhere. Column B reports the amount allocable to Illinois.
When are interest and dividends allocable to Illinois?
They are allocable to Illinois if your commercial domicile was in Illinois when the interest or dividend was paid or accrued.
How does the worksheet calculate the factor for recaptured business expense?
Add the factors from two years ago, if applicable, last year, and this year. Divide the sum by 3 if there is an amount on Line a, or by 2 if there is not. Use the greater of that average or this year’s factor. Multiply Column A, Line 11 by that factor and enter the result on worksheet Line g and Column B, Line 11.
How do I calculate the totals on Line 12?
Add Lines 1 through 11 separately for each column.