How to File Your Illinois Tax Return for 2022: Step-by-Step Guide for Individuals and Small Businesses

Filing your Illinois tax return for the 2022 tax year is an important step to stay compliant with state requirements and avoid unnecessary penalties. Whether you are an individual, a sole proprietor, or a small business owner, understanding the process can help you file accurately and on time. This guide will walk you through each step, explain the necessary forms, and show you how to access official Illinois Department of Revenue resources.

Your Illinois income tax return is separate from your federal one, but the two are connected. Information from your federal return is often used to complete your state forms, so having both on hand will make the process smoother. Along the way, we will cover essential topics like filing status, claiming credits such as the child tax or earned income credit, and determining if you owe money or can expect a refund.

Thanks to online tools like a MyTax Illinois account and services such as Intuit TurboTax, filing has become more accessible than ever. Still, it’s essential to understand the process, the required documents, and the deadlines. Whether you file online or mail your return, this step-by-step guide will help you prepare a complete and accurate income tax return for the current year while keeping the process clear and manageable.

Overview of Illinois State Income Tax for 2022

Illinois uses a flat individual income tax rate of 4.95 percent for the 2022 tax year. This means that all taxpayers, regardless of income level, pay the same tax rate on their taxable income. While the rate is uniform, the amount you owe can be reduced through exemptions and credits, available to qualifying individuals and families. Filing an Illinois tax return is mandatory for most residents and for certain nonresidents who earned income in the state.

Who Must File

You must file an Illinois income tax return if any of the following situations apply to you:

• You were a full-year resident of Illinois and earned taxable income during the 2022 tax year. This includes wages from an employer, self-employment earnings, or other taxable income.
  
  
• You were a part-year resident or a nonresident who received Illinois-source income, such as wages from an Illinois employer or profits from a business operating in the state.
  
  
• You are requesting a refund of Illinois taxes withheld from your paycheck. Even if you are not otherwise required to file, submitting a return allows you to claim money owed to you.
  
  
• You owe money from unpaid Illinois taxes, even if you no longer live there. Filing ensures your tax liability is recorded correctly and any interest or penalties are calculated accurately.

Filing Status

Your filing status on your Illinois tax return is typically the same as the filing status you use on your federal income tax return. This status determines how you complete your return, which exemptions you can claim, and in some cases, how much you owe or the size of your refund. The available filing statuses are

• Single – For individuals who are unmarried, legally separated, or widowed without dependents.
  
  
• Married filing jointly—This is for married couples choosing to combine their income and deductions on one return.
  
  
• Married filing separately is for married individuals who file separate returns to keep their incomes and deductions separate.
  
  
• Head of household refers to unmarried individuals who have paid more than half the cost of maintaining a home for a qualifying person.
  
  
• Qualifying widow(er)—Individuals whose spouses died in the prior two years and who have a dependent child can use joint return rates.

Exemptions and Credits

• The personal exemption allowance for 2022 is $2,425 per eligible person, which reduces your taxable income and lowers the amount of tax you owe.
  
  
• Taxpayers who qualify for the federal Illinois earned income credit may also claim a percentage of that credit on their Illinois return. This benefit can help lower-income working families reduce their tax liability or increase their refund.
  
  
• Some families may qualify for the child tax credit, depending on their income, filing status, and number of eligible dependents. This credit can directly reduce the amount of taxes owed.
  
  
• Certain types of retirement income, such as Social Security benefits, qualified pension distributions, and some retirement plan withdrawals, are exempt from Illinois income tax. This exemption can significantly reduce the tax burden for retirees.

Deadlines and Penalties

The deadline to file taxes for 2022 was April 18, 2023. If you file late without an approved extension, you may have to pay penalties and interest. If you think you owe money, paying by the due date is best to avoid extra fees, even if you still need more time to finish your return.

What Forms to Use

Most Illinois residents will use Form IL-1040 to file their individual income tax return for the 2022 tax year. This is the main form for reporting income, determining how much tax you owe or should receive, and claiming any credits or changes.

Main Form

• Form IL-1040 is required for residents and qualifying nonresidents who earned income in Illinois during the 2022 tax year. You will need information from your federal income tax return to complete certain sections.

Common Schedules

• Schedule IL-WIT reports any Illinois tax withheld from wages or other income sources. This helps ensure you receive credit for taxes already paid.
  
  
• Schedule NR is required for part-year residents and nonresidents to report income earned within Illinois. This ensures that only the Illinois portion of your income is taxed at the state level.
  
  
• Schedule CR allows you to claim a credit for taxes paid to another state, which can help reduce the amount you owe to Illinois.

Additional Forms

• Form IL-1040-X is used to amend a previously filed Illinois tax return. This may be necessary if you discover an error or receive updated tax documents.
  
  
• If you are mailing a payment with your paper return, you should include the IL-1040-V payment voucher. This voucher helps the Illinois Department of Revenue process your payment accurately.

You can access these forms and their instructions through your MyTax Illinois account or download them from the Illinois Department of Revenue website. If you choose to use a service such as Intuit TurboTax, many of these forms will be generated for you as part of the filing process.

Step-by-Step Instructions to Complete Your Return

Completing your Illinois income tax return accurately helps you avoid processing delays, penalties, or notices from the Illinois Department of Revenue. A structured approach will make the process easier and ensure nothing is overlooked.

1. Gather Required Documents

• Get all of your W-2 forms from your jobs. They show how much money you made and how much Illinois tax was taken.
  
  
• Get any 1099 forms that show other kinds of income, like interest, dividends, or work done on a contract.
  
  
• Keep receipts for deductible expenses or documentation needed to claim credits, such as the child tax or earned income credit.
  
  
• Have your prior year tax return available to reference past figures and carryover amounts.
  
  
• Save any notices you received from the IRS or the Illinois Department of Revenue, as these may affect your current year filing.

2. Fill Out Form IL-1040

• Please complete the form with all your taxable income from Illinois for the current year, following the instructions.
  
  
• Include any changes or exemptions you are eligible for, like retirement income exclusions.
  
  
• Using the 4.95 percent flat tax rate and any credits or amounts withheld, figure out how much tax you owe or how much you should get back.

3. Add Applicable Schedules

• Attach Schedule IL-WIT if you had Illinois tax withheld from wages or other income, ensuring you receive proper credit for these payments.
  
  
• Complete Schedule NR. If you were a part-year resident or nonresident with Illinois income, only your Illinois-source income is taxed.
  
  
• File Schedule CR if you have paid income tax to another state and want to claim a credit to avoid double taxation.

4. Common Mistakes to Avoid

• Always sign and date your return before submitting it, as unsigned returns will be rejected.
  
  
• Double-check that Social Security numbers are entered correctly for all filers and dependents.
  
  
• Verify that the income reported on your Illinois return matches the income reported on your federal income tax return to prevent processing issues.
  
  
• Ensure all required schedules are attached when claiming specific credits or adjustments, as missing schedules can delay your refund.

How to File Your Return

Illinois taxpayers have the option to file their returns online or by mail. Choosing the best method can make the process more efficient but also affect how quickly you receive your refund.

E-File via MyTax Illinois

• Create or log in to your MyTax Illinois account to begin the electronic filing. The system will guide you through completing your return step-by-step.
  
  
• Submitting your return electronically is generally faster and more accurate, as the system checks for common errors before submission.
  
  
• E-filing also provides immediate confirmation that your return has been received, which can give you peace of mind during tax time.

Paper Filing

• Download and print Form IL-1040 and any required schedules from the Illinois Department of Revenue website. Then, fill them out carefully, following the provided instructions.
  
  
• If you are mailing your return with a payment, send it to Illinois Department of Revenue, P.O. Box 19027, Springfield, IL 62794-9027.
  
  
• If you are mailing your return without a payment or with a zero balance, send it to Illinois Department of Revenue, P.O. Box 19048, Springfield, IL 62794-9048.
  
  
• Always include the IL-1040-V payment voucher when mailing a payment so it can be applied correctly to your account.

Processing Times

• Most e-filed returns are processed within a few weeks, making them the fastest option for receiving a refund.
  
  
• Paper returns generally take longer to process, especially during peak tax season, so filing early is recommended if you prefer this method.
  
  
• To avoid delays, ensure your forms are complete, your schedules are attached, and all details match your federal income tax return.

How to Make a Payment

If you owe money for the 2022 tax year, the Illinois Department of Revenue offers several convenient ways to make your payment. Paying on time will help you avoid penalties and interest charges.

Payment Options

• You can electronically pay through your MyTax Illinois account using a direct bank withdrawal, which securely transfers the money from your financial institution to the Department of Revenue.
  
  
• Credit or debit card payments are accepted online, but be aware that service fees may apply depending on the payment processor.
  
  
• You can mail a check or money order along with the IL-1040-V payment voucher to ensure your payment is correctly applied to your account.
  
  
• Some taxpayers make payments in person at designated Illinois Department of Revenue offices for added convenience.

Deadlines and Tips

• Payments are due by the filing deadline for the 2022 tax year, April 18, 2023. Paying after this date may result in interest and late-payment penalties.
  
  
• If you cannot pay the full amount immediately, you may request a payment plan through your MyTax Illinois account. This can help you spread the cost over several months while remaining compliant.

How to Track Your Refund or Balance Due

After filing your Illinois income tax return, you can monitor the status of your refund or check whether you still owe money. This helps you plan your finances and resolve any issues promptly.

Tracking a Refund

• Use the “Where’s My Refund?” tool on the Illinois Department of Revenue website or through your MyTax Illinois account to see the progress of your refund.
  
  
• Have your Social Security number, the exact refund amount, and your tax year ready to ensure accurate results.
  
  
• Most refunds from e-filed returns are processed within a few weeks, while paper returns can take longer, especially during peak tax time.

Checking a Balance Due

• Log in to your MyTax Illinois account to view your current balance and any pending payments.
  
  
• If you owe money, the system will show the amount due and provide payment options.
  
  
• Checking regularly allows you to confirm that your payments have been applied and to address any issues before penalties or interest accumulate.

Final Filing Checklist

Review this checklist before submitting your Illinois tax return to ensure every detail is complete and accurate. A thorough review can help you avoid delays, notices from the Illinois Department of Revenue, or the need to file an amended return later.

• Confirm that Form IL-1040 is fully completed, with all required lines filled in accurately. Incomplete forms can result in processing delays or a request for additional information.
  
  
• Ensure all applicable schedules, such as Schedule IL-WIT, Schedule NR, or Schedule CR, are correctly completed, signed if necessary, and securely attached to your return before submission.
  
  
• Verify that your filing status, total income, and Illinois withholding amounts match the information reported on your federal income tax return to prevent discrepancies that may trigger a notice.
  
  
• If you owe money, choose and confirm your payment method through your MyTax Illinois account, direct debit from a financial institution, or mail a check. If you expect a refund, verify that your direct deposit information is correct to avoid delays in receiving your funds.
  
  
• For paper filers, use the correct mailing address for your situation—whether submitting with payment, without payment, or with a zero balance—and always include the IL-1040-V payment voucher when mailing a fee so it can be applied to your account.
  
  
• Keep copies of your completed return and all schedules, receipts, and other supporting documents safe. These records can be vital for future reference, especially if you need to verify information, respond to a notice, or file in the next tax year.

Frequently Asked Questions 

What happens if I miss the deadline to file my Illinois tax return?

If you miss the filing deadline for your Illinois tax return, you may owe money in penalties and interest. The amount will depend on how late you file and pay. Even if you cannot pay in full, it is better to file on time to reduce costs. You can use your MyTax Illinois account to file, make payments, and access notices from the Illinois Department of Revenue.

Can I e-file my Illinois individual income tax return for free?

Many taxpayers can file an Illinois individual income tax return for free through the MyTax Illinois account system. The state also partners with certain providers, such as Intuit TurboTax, for eligible free-file programs. E-filing is faster, allows you to access your return status easily, and reduces errors. Always have your federal income tax return ready, as some Illinois forms require information.

How do I claim the earned income or child tax credit on my Illinois tax return?

To claim the earned or child tax credit, you must first be eligible for these credits on your federal income tax return. Illinois allows a percentage of the federal earned income credit and offers the child tax credit to qualifying households. Complete the appropriate lines and schedules on your Illinois income tax return, attach the required forms, and keep receipts or records for verification if requested.

How do I request more time to file my Illinois income tax return?

If you need extra time to file your Illinois income tax return, request an extension through your MyTax Illinois account or by mailing Form IL-505-I. This does not extend the time to pay any taxes you owe. Payments must be made by the original due date of the tax year to avoid penalties and interest. Always check your filing status and payment records before requesting an extension.

Can I use my federal income tax return to help complete my Illinois tax return?

Your federal income tax return is a key resource for completing your Illinois tax return. Many figures, such as adjusted gross income, credits, and withholding amounts, are transferred from your federal forms to your Illinois forms. Your federal return on hand ensures your state return is complete, accurate, and consistent. This helps prevent errors, processing delays, or notices from the Illinois Department of Revenue.

How do I check the status of my Illinois tax refund or balance due?

You can check the status of your Illinois tax refund or balance due by logging into your MyTax Illinois account or using the “Where’s My Refund?” tool. You will need your Social Security number, the exact refund amount, and the tax year. If you owe money, you can make payments directly through your account. Tracking your status regularly can help you address any issues quickly.