Illinois Schedule NR, officially titled Nonresident and Part-Year Resident Computation of Illinois Tax, is a tax schedule issued by the Illinois Department of Revenue for individuals who were nonresidents or part-year residents of Illinois during the 2025 tax year. Its primary purpose is to determine how much of a taxpayer’s federal income and applicable tax adjustments belong to Illinois and to calculate the resulting Illinois income tax. The schedule separates total federal income from the portion attributable to Illinois, accounts for applicable federal adjustments to income, includes Illinois additions and subtractions, and calculates the taxpayer’s Illinois base income, exemption allowance, net income, and final tax liability. It also collects information about the taxpayer’s residency dates, other states in which the taxpayer claimed residency, and certain military-spouse residency circumstances. Individuals filing jointly must also provide relevant residency information about their spouses. Completing this schedule accurately is important because Illinois uses the calculations to determine the portion of income subject to Illinois income tax. The schedule must accompany Form IL-1040, Individual Income Tax Return, and it can also be identified as part of an amended Form IL-1040-X filing when applicable.
il-1040-schedule-nr.pdf
Who Needs to File Form IL-1040 Schedule NR?
Schedule NR is intended for individuals who were nonresidents or part-year residents of Illinois during the 2025 tax year and need to calculate their Illinois income tax.
It is particularly relevant when a taxpayer:
- Lived in Illinois for only part of 2025.
- Lived outside Illinois during the tax year but has income that must be considered for Illinois tax purposes.
- Changed residency between Illinois and another state during 2025.
- Needs to report the Illinois portion of federal income and applicable adjustments.
- Needs to calculate Illinois income tax using the nonresident and part-year resident computation.
Important eligibility restriction: If you or your spouse, when filing a joint return, were a full-year Illinois resident during 2025, the schedule states that you cannot use Schedule NR.
How To File Form IL-1040 Schedule NR
Schedule NR is not a standalone Illinois income tax return. It must be completed and attached to Form IL-1040, Individual Income Tax Return.
If you are filing an amended Illinois income tax return using Form IL-1040-X, mark the checkbox at the top of Schedule NR indicating that it is being attached to an amended return.
Where To Submit Schedule NR
Submit the completed Schedule NR together with your Form IL-1040 through the applicable filing method for your Illinois income tax return.
For an amended filing, identify the schedule as accompanying Form IL-1040-X by checking the designated box.
The schedule itself does not provide a separate mailing address or independent submission destination. Follow the applicable Illinois return filing instructions for the submission method and destination.
Documents And Information To Prepare
Before completing Schedule NR, gather the following information:
- Federal Form 1040 or Form 1040-SR: You will need the federal income amounts reported on the specified lines.
- Federal Schedule 1: Several income categories and adjustments on Schedule NR refer directly to this schedule.
- Form IL-1040: Prepare the Illinois return, including the required information from Lines 1 through 10.
- Residency records: Identify the dates you lived in Illinois and other states during 2025.
- Spouse’s residency information: If filing jointly, gather the applicable residency dates and state information for your spouse.
- State residency information: Identify all states in which you claimed residency for tax purposes during 2025.
- Income records: Keep the information used to prepare your federal return available so that you can verify the amounts entered in Schedule NR.
- Adjustment and deduction information: Review the federal Schedule 1 entries referenced throughout the schedule.
- Illinois income information: Identify applicable Illinois income, including Illinois State Lottery winnings.
The schedule specifically requires information from your federal return and Form IL-1040. Keep supporting tax records available when determining the Illinois portions of income and adjustments.
How To Complete Form IL-1040 Schedule NR
The 2025 Illinois Schedule NR contains five main steps. Each step addresses a different part of the residency determination, income calculation, adjustments, and Illinois tax computation.
Taxpayer Information And Identification
Before starting Step 1, complete the identification fields at the top of the schedule.
Your Name
Enter your full name exactly as it appears on your Form IL-1040. The name should match the Illinois income tax return submitted with Schedule NR.
Your Social Security Number
Enter the Social Security number associated with the taxpayer identified on Form IL-1040. Make sure the number matches your tax return.
Amended Form IL-1040-X Checkbox
Check this box if Schedule NR is being attached to an amended Illinois income tax return, Form IL-1040-X.
If you are filing an original Form IL-1040, leave this checkbox unmarked.
Electronic Form Instructions
When completing the electronic version, use your mouse or the Tab key to move between fields. To select checkboxes, use your mouse or the space bar when the checkbox is selected.
The electronic form also provides Reset and Print controls.
Step 1: Provide The Following Information
Step 1 establishes your residency status during the 2025 tax year. This information helps determine whether you can use Schedule NR and identifies the states in which you or your spouse claimed residency.
Line 1: Full-Year Illinois Residency
Indicate whether you or your spouse, if filing jointly, were a full-year resident of Illinois during 2025.
Select the appropriate answer:
- Yes: If you or your spouse were full-year Illinois residents, you cannot use Schedule NR.
- No: If neither you nor your spouse was a full-year Illinois resident, proceed with the remaining residency questions.
This question is an important eligibility check. Answer it based on the residency circumstances of both spouses when filing jointly.
Line 2a: Your Illinois And Other-State Residency Dates
If you were a part-year Illinois resident during 2025, provide the dates you lived in Illinois.
Enter:
- The month, day, and year you began living in Illinois.
- The month, day, and year your Illinois residency ended.
- The name of the other state in which you lived during the indicated period.
- The beginning and ending dates of your residency in that state.
Make sure the dates accurately reflect your residency during 2025.
The form provides separate spaces for the Illinois residency period and the other state’s residency period.
Line 2b: Your Spouse’s Residency Dates
If your spouse was a part-year Illinois resident during 2025, provide the corresponding residency information for your spouse.
Enter:
- The date your spouse began living in Illinois.
- The date your spouse stopped living in Illinois.
- The name of the other state in which your spouse lived.
- The beginning and ending dates of your spouse’s residency in that state.
If filing jointly, provide the information separately for each spouse rather than assuming both had identical residency periods.
Line 3: Residency In Certain States And Military Spouse Status
This question identifies taxpayers who lived in certain neighboring states or qualify under the military-spouse circumstances described on the form.
The available checkboxes are:
- Iowa
- Kentucky
- Michigan
- Wisconsin
- Military Spouse
Check the appropriate box if any of the following circumstances apply:
- You were a resident of Iowa during 2025.
- You were a resident of Kentucky during 2025.
- You were a resident of Michigan during 2025.
- You were a resident of Wisconsin during 2025.
- You were in Illinois only to accompany your spouse, who was serving in the military.
- You elected to use your military service-member spouse’s state of residence for tax purposes.
Select the applicable option or options based on your residency circumstances.
Line 4: Other States Claimed For Tax Purposes
List any additional states in which you claimed residency for tax purposes during 2025.
Do not include:
- Illinois.
- States already reported on Line 2.
- States already identified on Line 3.
Enter the two-letter postal abbreviation for each additional state.
For example, use the appropriate two-letter abbreviation rather than writing the complete state name.
The form provides multiple spaces for reporting additional states. Use the available spaces to identify all applicable states.
Step 2: Complete Form IL-1040
Step 2: Complete Your Illinois Individual Income Tax Return
Before continuing with the remaining sections of Schedule NR, complete Lines 1 through 10 of Form IL-1040 as though you were a full-year Illinois resident.
This means you should first prepare the specified portion of your Illinois income tax return using the full-year resident approach required by the schedule.
After completing Lines 1 through 10:
- Return to Schedule NR.
- Follow the remaining instructions according to your actual residency circumstances.
- Complete the income, adjustment, addition, subtraction, and tax calculations.
- Attach the completed Schedule NR to Form IL-1040.
Do not skip this step because several calculations on Page 2 require information directly from Form IL-1040.
Step 3: Figure The Illinois Portion Of Your Federal Adjusted Gross Income
Step 3 determines how much of your federal income and applicable adjustments is attributable to Illinois.
This step uses two columns.
Column A: Federal Total
Enter the complete amounts reported on your federal income tax return. Use the specified lines from Federal Form 1040, Form 1040-SR, or Schedule 1.
Column B: Illinois Portion
Enter the applicable Illinois portion of each income item or adjustment.
The schedule specifically instructs taxpayers to read the Column B instructions before entering these amounts. The allocation rules are not fully printed on the schedule itself, so use the applicable Schedule NR instructions to determine the correct Illinois portion.
Income Entries: Lines 5 Through 20
Line 5: Wages, Salaries, Tips, And Other Compensation
Enter your total wages, salaries, tips, and other applicable compensation reported on Federal Form 1040 or Form 1040-SR, Line 1z, in Column A.
In Column B, enter the portion attributable to Illinois under the applicable Column B instructions.
Use your federal wage information and relevant income records to verify the amounts.
Line 6: Taxable Interest
Enter the total taxable interest reported on Federal Form 1040 or Form 1040-SR, Line 2b, in Column A.
Enter the Illinois portion in Column B according to the Schedule NR allocation instructions.
Line 7: Ordinary Dividends
Enter the ordinary dividends reported on Federal Form 1040 or Form 1040-SR, Line 3b, in Column A.
In Column B, report the Illinois portion determined under the applicable instructions.
Line 8: Taxable State And Local Income Tax Refunds, Credits, Or Offsets
Enter the taxable refunds, credits, or offsets of state and local income taxes reported on Federal Schedule 1, Line 1.
Place the complete federal amount in Column A and the applicable Illinois portion in Column B.
Use the amount reported on your federal return rather than entering the total refund received without considering its federal tax treatment.
Line 9: Alimony Received
Enter the alimony received reported on Federal Schedule 1, Line 2a.
Report the federal total in Column A and the applicable Illinois portion in Column B.
Use the amount reported on the referenced federal schedule.
Line 10: Business Income Or Loss
Enter your business income or loss reported on Federal Schedule 1, Line 3.
Column A should contain the total federal amount. Column B should contain the Illinois portion determined under the applicable instructions.
Line 11: Capital Gain Or Loss
Enter the capital gain or loss reported on Federal Form 1040 or Form 1040-SR, Line 7a.
Report the federal amount in Column A and the applicable Illinois portion in Column B.
Line 12: Other Gains Or Losses
Enter other gains or losses reported on Federal Schedule 1, Line 4.
Use Column A for the federal total and Column B for the Illinois portion.
Line 13: Taxable IRA Distributions
Enter the taxable portion of your individual retirement account distributions reported on Federal Form 1040 or Form 1040-SR, Line 4b.
Report the complete federal amount in Column A and the applicable Illinois portion in Column B.
Line 14: Pensions And Annuities
Enter the taxable pension and annuity amount reported on Federal Form 1040 or Form 1040-SR, Line 5b.
Enter the federal total in Column A and the Illinois portion in Column B.
Line 15: Rental Real Estate, Royalties, Partnerships, S Corporations, And Trusts
Enter the applicable income or loss reported on Federal Schedule 1, Line 5.
This category includes income or losses from:
- Rental real estate.
- Royalties.
- Partnerships.
- S corporations.
- Trusts.
- Other activities included in the referenced federal line.
Enter the complete amount in Column A and the applicable Illinois portion in Column B.
Line 16: Farm Income Or Loss
Enter farm income or loss reported on Federal Schedule 1, Line 6.
Column A should reflect the federal amount, while Column B should reflect the Illinois portion under the applicable allocation instructions.
Line 17: Unemployment Compensation
Enter the unemployment compensation reported on Federal Schedule 1, Line 7.
Report the federal total in Column A and the applicable Illinois portion in Column B.
Line 18: Taxable Social Security Benefits
Enter the taxable Social Security benefits reported on Federal Form 1040 or Form 1040-SR, Line 6b.
Place the federal amount in Column A and the applicable Illinois portion in Column B.
Line 19: Other Income
Enter other income reported on Federal Schedule 1, Line 9.
The schedule refers taxpayers to the applicable instructions for this category. Review those instructions when determining which amounts belong on this line.
There is also an important Illinois-specific requirement:
Include winnings from the Illinois State Lottery as Illinois income in Column B.
Make sure applicable Illinois State Lottery winnings are reflected in the Illinois portion even when the income is included in a broader federal income category.
Line 20: Total Illinois Portion Of Federal Income
Add the amounts entered in Column B for Lines 5 through 19.
The resulting figure represents the Illinois portion of your federal total income.
Use the following calculation:
Illinois portion of federal income = Line 5B + Line 6B + Line 7B + Line 8B + Line 9B + Line 10B + Line 11B + Line 12B + Line 13B + Line 14B + Line 15B + Line 16B + Line 17B + Line 18B + Line 19B.
Enter the total on Line 20.
Continue to Page 2 of Schedule NR.
Step 3 Continued: Adjustments To Income
The second part of Step 3 calculates the Illinois portion of federal adjustments to income.
For Lines 22 through 35, Column A represents the federal total, while Column B represents the Illinois portion.
Use the corresponding Federal Form 1040, Form 1040-SR, or Schedule 1 amounts as indicated.
Line 21: Illinois Portion Of Federal Total Income
Enter the amount from Page 1, Step 3, Line 20.
This amount represents the Illinois portion of your federal total income.
Transfer the Line 20 amount directly into Line 21. Do not calculate a new income amount for this entry.
Line 22: Educator Expenses
Enter the educator expenses deduction reported on Federal Schedule 1, Line 11.
Place the federal total in Column A and the applicable Illinois portion in Column B.
Line 23: Certain Business Expenses Of Reservists, Performing Artists, And Fee-Basis Government Officials
Enter the qualifying business expenses reported on Federal Schedule 1, Line 12.
This category covers certain expenses associated with:
- Armed Forces reservists.
- Qualified performing artists.
- Fee-basis government officials.
Report the federal total in Column A and the applicable Illinois portion in Column B.
Line 24: Health Savings Account Deduction
Enter the health savings account deduction reported on Federal Schedule 1, Line 13.
Use Column A for the federal amount and Column B for the Illinois portion.
Line 25: Moving Expenses For Members Of The Armed Forces
Enter the qualifying moving expenses deduction reported on Federal Schedule 1, Line 14.
Report the federal total in Column A and the applicable Illinois portion in Column B.
Line 26: Deductible Part Of Self-Employment Tax
Enter the deductible portion of self-employment tax reported on Federal Schedule 1, Line 15.
Enter the complete federal amount in Column A and the applicable Illinois portion in Column B.
Line 27: Self-Employed SEP, SIMPLE, And Qualified Plans
Enter the deduction for self-employed SEP, SIMPLE, and other qualified retirement plans reported on Federal Schedule 1, Line 16.
Column A should contain the federal amount, while Column B should contain the Illinois portion.
Line 28: Self-Employed Health Insurance Deduction
Enter the self-employed health insurance deduction reported on Federal Schedule 1, Line 17.
Report the federal total in Column A and the applicable Illinois portion in Column B.
Line 29: Penalty On Early Withdrawal Of Savings
Enter the penalty on early withdrawal of savings reported on Federal Schedule 1, Line 18.
Use Column A for the complete federal amount and Column B for the Illinois portion.
Line 30: Alimony Paid
Enter the deductible alimony paid amount reported on Federal Schedule 1, Line 19a.
Report the federal amount in Column A and the applicable Illinois portion in Column B.
Line 31: IRA Deduction
Enter the individual retirement account deduction reported on Federal Schedule 1, Line 20.
Place the federal amount in Column A and the Illinois portion in Column B.
Line 32: Student Loan Interest Deduction
Enter the student loan interest deduction reported on Federal Schedule 1, Line 21.
Report the federal total in Column A and the applicable Illinois portion in Column B.
Line 33: Reserved
Line 33 is reserved and is not designated for entering an adjustment amount.
Both entry areas are unavailable on the form. Leave this line blank.
Do not include an amount for Line 33 when calculating the adjustments on Line 36.
Line 34: Archer Medical Savings Account Deduction
Enter the Archer Medical Savings Account (MSA) deduction reported on Federal Schedule 1, Line 23.
Enter the federal total in Column A and the applicable Illinois portion in Column B.
Line 35: Other Adjustments
Enter other applicable adjustments to income not specifically identified on the preceding lines.
The schedule directs taxpayers to consult the instructions for this category.
Enter the federal total in Column A and the applicable Illinois portion in Column B.
Line 36: Total Illinois Portion Of Federal Adjustments
Add the amounts in Column B for Lines 22 through 35.
This calculation determines the total Illinois portion of your federal adjustments to income.
Enter the resulting amount on Line 36.
Line 37: Adjusted Gross Income From Form IL-1040
Enter your adjusted gross income as reported on Form IL-1040, Line 1.
Use the amount from the specified line of your completed Illinois income tax return.
This entry is placed in Column A.
Line 38: Illinois Portion Of Federal Adjusted Gross Income
Subtract Line 36 from Line 21.
The calculation is:
Illinois portion of federal adjusted gross income = Line 21 − Line 36.
Enter the resulting amount on Line 38.
This represents the Illinois portion of your federal adjusted gross income after accounting for the applicable federal adjustments.
Step 4: Figure Your Illinois Additions And Subtractions
Step 4 incorporates the additions and subtractions reported on Form IL-1040.
Column A requires the total amounts from your Illinois income tax return. Column B requires the corresponding Illinois portions.
The schedule specifically instructs taxpayers to review the Column B instructions before completing this section.
Illinois Additions To Income
Line 39: Federally Tax-Exempt Interest And Dividend Income
Enter federally tax-exempt interest and dividend income reported on Form IL-1040, Line 2.
Enter the total amount in Column A and the applicable Illinois portion in Column B.
Line 40: Other Additions
Enter other additions reported on Form IL-1040, Line 3.
Place the complete amount in Column A and the applicable Illinois portion in Column B.
Line 41: Total Illinois Portion Of Income
Add the amounts in Column B for Lines 38, 39, and 40.
The calculation is:
Illinois portion of total income = Line 38 + Line 39B + Line 40B.
Enter the result on Line 41.
This amount represents your Illinois portion of total income after incorporating the applicable additions.
Illinois Subtractions From Income
Line 42: Federally Taxed Social Security And Retirement Income
Enter the federally taxed Social Security and retirement income reported on Form IL-1040, Line 5.
Enter the total amount in Column A and the applicable Illinois portion in Column B.
Line 43: Illinois Income Tax Overpayment Included In Federal Income
Enter the Illinois income tax overpayment included in your federal income tax return.
The form identifies the relevant federal amount on Federal Form 1040 or Form 1040-SR, Schedule 1, Line 1, and references Form IL-1040, Line 6.
Report the total amount in Column A and the applicable Illinois portion in Column B.
Line 44: Other Subtractions
Enter other subtractions reported on Form IL-1040, Line 7.
Place the total amount in Column A and the applicable Illinois portion in Column B.
Line 45: Total Illinois Subtractions
Add the amounts in Column B for Lines 42 through 44.
The calculation is:
Total Illinois subtractions = Line 42B + Line 43B + Line 44B.
Enter the result on Line 45.
This figure represents the total Illinois portion of the applicable subtractions.
Step 5: Figure Your Illinois Income And Tax
Step 5 uses the amounts calculated in the previous sections to determine your Illinois base income, exemption allowance, net income, and final income tax.
Line 46: Illinois Base Income
Subtract Line 45 from Line 41.
The calculation is:
Illinois base income = Line 41 − Line 45.
If Line 45 is greater than Line 41, enter zero instead of a negative amount.
There is also an important instruction for this line:
If Line 46 equals zero, skip Lines 47 through 51 and enter zero on Line 52.
Line 47: Base Income From Form IL-1040
Enter the base income reported on Form IL-1040, Line 9.
Use the amount from the corresponding line of your completed Illinois income tax return.
Line 48: Illinois Income Ratio
Divide the amount on Line 46 by the amount on Line 47.
Round the resulting decimal to three decimal places.
The calculation is:
Illinois income ratio = Line 46 ÷ Line 47.
Follow these additional instructions:
- Round the result to three decimal places.
- Enter the appropriate decimal on Line 48.
- If Line 46 is greater than Line 47, enter 1.000.
This decimal is used to determine the Illinois portion of your exemption allowance.
Line 49: Exemption Allowance
Enter your exemption allowance from Form IL-1040, Line 10.
Use the amount reported on the corresponding line of your Illinois income tax return.
Line 50: Illinois Exemption Allowance
Multiply the amount on Line 49 by the decimal entered on Line 48.
The calculation is:
Illinois exemption allowance = Line 49 × Line 48.
Enter the result on Line 50.
This calculation determines the portion of your exemption allowance applicable to Illinois.
Line 51: Illinois Net Income
Subtract Line 50 from Line 46.
The calculation is:
Illinois net income = Line 46 − Line 50.
Enter the resulting amount on Line 51.
Transfer this amount to Form IL-1040, Line 11.
If Line 46 was zero, follow the instruction to skip this line.
Line 52: Illinois Income Tax
Multiply the amount on Line 51 by the Illinois income tax rate of 4.95%, expressed as 0.0495.
The calculation is:
Illinois income tax = Line 51 × 0.0495.
Enter the result on Line 52.
The amount cannot be less than zero.
Transfer the calculated tax amount to Form IL-1040, Line 12.
If Line 46 was zero, enter zero on Line 52 as instructed, without completing Lines 47 through 51.
il-1040-schedule-nr.pdf
Final Review Before Filing
Before submitting your 2025 Illinois Schedule NR with Form IL-1040, review the following items carefully.
Taxpayer Information
- Your name matches the name on Form IL-1040.
- Your Social Security number is entered correctly.
- The amended return checkbox is selected if attaching Schedule NR to Form IL-1040-X.
- You have confirmed that you are eligible to use Schedule NR.
- If filing jointly, you have considered both spouses’ residency circumstances.
Residency Information
- Line 1 contains the correct full-year residency answer.
- Line 2a includes your Illinois and other-state residency dates, if applicable.
- Line 2b includes your spouse’s residency dates, if applicable.
- Line 3 identifies any applicable state or military-spouse circumstances.
- Line 4 includes other states claimed for tax purposes using their correct two-letter abbreviations.
- No state already reported on Lines 2 or 3 has been unnecessarily repeated on Line 4.
Income And Adjustment Calculations
- Form IL-1040, Lines 1 through 10, has been completed as required in Step 2.
- Column A amounts match the corresponding federal return entries.
- Column B amounts have been determined using the applicable Schedule NR instructions.
- Illinois State Lottery winnings have been included as Illinois income in Column B when applicable.
- Line 20 correctly totals Column B, Lines 5 through 19.
- Line 21 matches Line 20.
- Lines 22 through 35 contain the applicable federal adjustments and Illinois portions.
- Line 33 remains blank because it is reserved.
- Line 36 correctly totals the Illinois portions of adjustments.
- Line 37 matches Form IL-1040, Line 1.
- Line 38 correctly subtracts Line 36 from Line 21.
Illinois Additions And Subtractions
- Line 39 matches the applicable amount from Form IL-1040, Line 2.
- Line 40 matches the applicable amount from Form IL-1040, Line 3.
- Line 41 correctly totals Lines 38, 39, and 40 in Column B.
- Line 42 reflects the applicable Social Security and retirement income.
- Line 43 reflects the applicable Illinois income tax overpayment.
- Line 44 reflects other applicable Illinois subtractions.
- Line 45 correctly totals the Column B amounts from Lines 42 through 44.
Final Illinois Tax Calculation
- Line 46 correctly subtracts Line 45 from Line 41.
- Zero has been entered on Line 46 if Line 45 exceeds Line 41.
- If Line 46 is zero, Lines 47 through 51 have been skipped and zero has been entered on Line 52.
- Line 47 matches Form IL-1040, Line 9.
- Line 48 has been rounded to three decimal places.
- Line 48 contains 1.000 if Line 46 is greater than Line 47.
- Line 49 matches Form IL-1040, Line 10.
- Line 50 correctly calculates the Illinois exemption allowance.
- Line 51 correctly calculates Illinois net income.
- Line 51 has been transferred to Form IL-1040, Line 11.
- Line 52 applies the 4.95% tax rate correctly.
- Line 52 has been transferred to Form IL-1040, Line 12.
Filing And Submission
- All required fields and applicable checkboxes have been completed.
- All calculations have been checked for accuracy.
- The completed Schedule NR is attached to Form IL-1040.
- If filing an amended return, the amended-return checkbox is marked.
- The filing method and submission destination follow the applicable Illinois income tax return instructions.
Important: The form states that disclosure of the requested information is required. Failure to provide the information could result in a penalty. Make sure the residency information, income amounts, adjustments, and final calculations are complete and accurate before submitting your Illinois income tax return.