As the new tax season draws near, Illinois taxpayers and tax professionals should be aware of some important updates to the 2024 Illinois Income Tax forms, 2025 Withholding Income Tax forms, and related schedules. At JLW Tax & Bookkeeping Services, we know that keeping up with these changes can feel overwhelming. That’s why our team is here to provide clear guidance, helping those in Springfield, IL, navigate the updated forms and rules with confidence. This blog highlights the key changes for individuals, businesses, and tax preparers, offering practical insights to ensure that your tax filings are accurate and timely. We’re committed to making the process as smooth and stress-free as possible for you.
General Tips and Filing Information
The Illinois Department of Revenue (IDOR) provides a variety of helpful resources to assist taxpayers. If you need direct help, IDOR has a dedicated taxpayer assistance line with automated options to check your refund status, locate your PIN, and access payment information. This can save you time and effort when you need answers quickly. In addition, if you’ve been impacted by severe weather, such as storms, tornadoes, or flooding since July 13, 2024, IDOR offers filing and payment relief. This relief is available for both individuals and businesses in affected areas. For more information on how to access this support and details on eligibility, visit the IDOR website for the latest updates.
Important Deadlines
For Individual Tax Returns (Form IL-1040) in 2025, the original due date is April 15, 2025, but taxpayers can file an extension to submit by October 15, 2025. In addition, for taxpayers making quarterly estimated payments in 2025, these payments should be made in four equal installments. The amount should be based on either 90% of the expected liability for 2025 or 100% of the 2024 liability. This ensures that taxpayers avoid penalties for underpayment. It’s important to keep track of these deadlines and payment requirements to stay compliant with Illinois tax laws and avoid any penalties for the 2025 tax year.
2024 Tax Form Changes
For the 2024 tax year, the personal exemption amount in Illinois has increased to $2,775. Several updates have been made to Illinois tax forms, including a new Child Tax Credit on Form IL-1040 and IL-1040-X for taxpayers who qualify for the Illinois Earned Income Tax Credit (EITC) and have a dependent child under 12. This credit is worth 20% of the Illinois EITC. A checkbox has been added to indicate when schedules are attached to amended returns. Additionally, Schedule M now includes a line for fertility fraud-related settlements. Schedule ICR expands eligibility for the Volunteer Emergency Worker Credit, and Schedule IL-E/EITC simplifies the claiming process. Lastly, the 100 Club of Illinois Fund was removed from Schedule G due to insufficient donations.
Updates for Business Tax Returns
For 2024, Illinois tax forms have some important updates. On Forms IL-1065, IL-1065-X, IL-1120-ST, and IL-1120-ST-X, Step 8 now ends after the “Net replacement tax” line, with the following steps renumbered. Investment partnership forms now include updated instructions for special allocations in partnership agreements. Financial organizations will calculate investment and trading income using a specific ratio method. A $500,000 limit has been set on the Net Loss Deduction (NLD) for corporations, excluding S corporations, for tax years ending between December 31, 2024, and December 31, 2027. Schedules B and D have been reformatted for easier reporting of partnership withholding. Lastly, Form IL-477 includes a new step for credit validation, and Form IL-4562 includes changes to bonus depreciation.
New Tax Credits in Illinois
Illinois has introduced several new tax credits for 2024. The Reimagining Energy and Vehicles (REV) Credits, including the REV Illinois and REV Construction Jobs credits, help businesses with tax obligations based on income from new or retained employees. The Manufacturing Illinois Chips for Real Opportunity (MICRO) Credits offer benefits for investments and jobs in manufacturing and construction. The Returning Citizens Credit, previously the Wages Paid to Ex-Felons credit, increases to 15% of wages paid, with a $7,500 limit per person starting in 2025. Other updates include the extension of the adoption credit through 2029, the addition of the Music and Musicians tax credit, the Illinois Gives tax credit, and the extension of the Research and Development tax credit through 2031.
Contact JLW Tax & Bookkeeping Services for Tax Form Inquiries
For businesses and tax preparers, keeping track of Illinois’ changing tax code is essential for accurate filing. In 2025, there are significant updates to income tax forms and schedules designed to simplify the process and offer new credits for qualifying individuals and businesses. These updates can be challenging to navigate, especially with the added complexities of evolving tax laws. That’s where we come in. At JLW Tax & Bookkeeping Services, our team is committed to helping you stay on top of these changes. Whether you’re unsure about new credits or need guidance on the updated forms, we’re here to answer your questions and make tax season as smooth as possible for you. Contact us today for assistance!
