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Illinois State Tax Forms 2011

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Illinois State Tax Forms 2011

Illinois state tax forms 2011 Publication 557 - Additional Material Table of Contents Appendix. Illinois state tax forms 2011 Sample Articles of Organization, continued Organization Reference Chart Section of 1986 Code Description of organization General nature of activities Application  Form Annual return required to be  filed Contributions  allowable 501(c)(1) Corporations Organized under Act of Congress (including Federal Credit Unions) Instrumentalities of the  United States No Form None Yes, if made for exclusively public purposes 501(c)(2) Title Holding Corporation For Exempt Organization Holding title to property of an  exempt organization 1024 9901 or 990-EZ8 No2 501(c)(3) Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations Activities of nature implied by description of class of organization 1023 9901 or 990-EZ8, or 990-PF Yes, generally 501(c)(4) Civic Leagues, Social Welfare Organizations, and Local Associations of Employees Promotion of community welfare; charitable, educational, or recreational 1024 9901 or 990-EZ8 No, generally 2, 3 501(c)(5) Labor, Agricultural, and Horticultural Organizations Educational or instructive, the  purpose being to improve conditions of work, and to improve products of efficiency 1024 9901 or 990-EZ8 No2 501(c)(6) Business Leagues, Chambers of Commerce, Real Estate Boards, etc. Illinois state tax forms 2011 Improvement of business  conditions of one or more lines of business 1024 9901 or 990-EZ8 No2 501(c)(7) Social and Recreational Clubs Pleasure, recreation, social activities 1024 9901 or 990-EZ8 No2 501(c)(8) Fraternal Beneficiary Societies  and Associations Lodge providing for payment of life, sickness, accident or other benefits  to members 1024 9901 or 990-EZ8 Yes, if for certain Sec. Illinois state tax forms 2011 501(c)(3) purposes 501(c)(9) Voluntary Employees Beneficiary Associations Providing for payment of life, sickness, accident, or other benefits to members 1024 9901 or 990-EZ8 No2 501(c)(10) Domestic Fraternal Societies  and Associations Lodge devoting its net earnings to charitable, fraternal, and other  specified purposes. Illinois state tax forms 2011 No life, sickness, or accident benefits to members 1024 9901 or 990-EZ8 Yes, if for certain Sec. Illinois state tax forms 2011 501(c)(3) purposes 501(c)(11) Teachers' Retirement Fund Associations Teachers' association for payment of retirement benefits Letter6 9901 or 990-EZ8 No2 501(c)(12) Benevolent Life Insurance Associations, Mutual Ditch or  Irrigation Companies, Mutual or Cooperative Telephone Companies, etc. Illinois state tax forms 2011 Activities of a mutually beneficial  nature similar to those implied by the description of class of organization 1024 9901 or 990-EZ8 No2 501(c)(13) Cemetery Companies Burials and incidental activities 1024 9901 or 990-EZ8 Yes, generally 501(c)(14) State-Chartered Credit Unions,  Mutual Reserve Funds Loans to members Letter6 9901 or 990-EZ8 No2 501(c)(15) Mutual Insurance Companies or Associations Providing insurance to members substantially at cost 1024 9901 or 990-EZ8 No2 501(c)(16) Cooperative Organizations to  Finance Crop Operations Financing crop operations in  conjunction with activities of a marketing  or purchasing association Form 1120-C6 9901 or 990-EZ8 No2 501(c)(17) Supplemental Unemployment  Benefit Trusts Provides for payment of  supplemental unemployment compensation benefits 1024 9901 or 990-EZ8 No2 501(c)(18) Employee Funded Pension Trust (created before June 25, 1959) Payment of benefits under a  pension plan funded by employees Letter6 9901 or 990-EZ8 No2 501(c)(19) Post or Organization of Past or  Present Members of the Armed Forces Activities implied by nature of organization 1024 9901 or 990-EZ8 No, generally7 501(c)(21) Black Lung Benefit Trusts Funded by coal mine operators to satisfy their liability for disability or  death due to black lung diseases Letter6 990-BL No4 501(c)(22) Withdrawal Liability Payment Fund To provide funds to meet the  liability of employers withdrawing from  a multi-employer pension fund Letter6 9901 or 990-EZ8 No5 501(c)(23) Veterans' Organization (created before 1880) To provide insurance and other  benefits to veterans Letter6 9901 or 990-EZ8 No, generally7 501(c)(25) Title Holding Corporations or Trusts with Multiple Parent Corporations Holding title and paying over  income from property to 35 or fewer parents or beneficiaries 1024 9901 or 990-EZ8 No 501(c)(26) State-Sponsored Organization Providing Health Coverage for High-Risk Individuals Provides health care coverage to high-risk individuals Letter6 9901 or 990-EZ8 No 501(c)(27) State-Sponsored Workers' Compensation Reinsurance Organization Reimburses members for losses  under workers' compensation acts Letter6 9901 or 990-EZ8 No 501(c)(28) National Railroad Retirement Investment Trust Manages and invests the assets of the Railroad Retirement Account No Form 99011 No11 501(c)(29) CO-OP health insurance issuers A qualified health insurance issuer which has received a loan or grant under the CO-OP program Letter and Form 871814 9901 No13 501(d) Religious and Apostolic Associations Regular business activities;  Communal religious community No Form 10659 No2 501(e) Cooperative Hospital Service Organizations Performs cooperative services for hospitals 1023 9901 or 990-EZ8 Yes 501(f) Cooperative Service Organizations  of Operating Educational Organizations Performs collective investment  services for educational organizations 1023 9901 or 990-EZ8 Yes 501(k) Child Care Organizations Provides care for children 1023 9901 or 990-EZ8 Yes 501(n) Charitable Risk Pools Pools certain insurance risks of sec. Illinois state tax forms 2011 501(c)(3) organizations 1023 9901 or 990-EZ8 Yes 501(q) Credit Counseling Organization Credit counseling services 1023 102312 No 521(a) Farmers' Cooperative Associations Cooperative marketing and  purchasing for agricultural procedures 1028 1120-C No 527 Political organizations A party, committee, fund,  association, etc. Illinois state tax forms 2011 , that directly or indirectly accepts contributions or makes expenditures for political campaigns 8871 1120-POL10 9901 or 990-EZ8 No 1For exceptions to the filing requirement, see chapter 2 and the form instructions. Illinois state tax forms 2011 Note: For annual tax periods beginning after 2006, most tax-exempt organizations, other than churches, are required to file an annual Form 990, 990-EZ, or 990-PF with the IRS or to submit an annual electronic notice, Form 990-N (e-Postcard), to the IRS. Illinois state tax forms 2011 Tax-exempt organizations failing to file an annual return or submit an annual notice as required for 3 consecutive years will automatically lose their tax-exempt status. Illinois state tax forms 2011    2An organization exempt under a subsection of section 501 other than 501(c)(3) can establish a charitable fund, contributions to which are deductible. Illinois state tax forms 2011 Such a fund must itself meet the requirements of section 501(c)(3) and the related notice requirements of section 508(a). Illinois state tax forms 2011    3Contributions to volunteer fire companies and similar organizations are deductible, but only if made for exclusively public purposes. Illinois state tax forms 2011    4Deductible as a business expense to the extent allowed by section 192. Illinois state tax forms 2011    5Deductible as a business expense to the extent allowed by section 194A. Illinois state tax forms 2011 6Application is by letter to the address shown on Form 8718. Illinois state tax forms 2011 A copy of the organizing document should be attached and the letter should be signed by an officer. Illinois state tax forms 2011    7Contributions to these organizations are deductible only if 90% or more of the organization's members are war veterans. Illinois state tax forms 2011    8For limits on the use of Form 990-EZ, see chapter 2 and the general instructions for Form 990-EZ (or Form 990). Illinois state tax forms 2011    9Although the organization files a partnership return, all distributions are deemed dividends. Illinois state tax forms 2011 The members are not entitled to pass through treatment of the organization's income or expenses. Illinois state tax forms 2011    10Form 1120-POL is required only if the organization has taxable income as defined in section 527(c). Illinois state tax forms 2011    11Only required to annually file so much of the Form 990 that relates to the names and addresses of the officers, directors, trustees, and key employees, and their titles, compensation, and hours devoted to their positions (Part VII of Form 990), and to complete Item I in the Heading of Form 990 to confirm its tax-exempt status under section 501(c)(28). Illinois state tax forms 2011    12See section 501(q) if the organization provides credit counseling services and seeks recognition of exemption under section 501(c)(4). Illinois state tax forms 2011 Use Form 1024 if applying for recognition under section 501(c)(4). Illinois state tax forms 2011    13See section 501(c)(29) for details. Illinois state tax forms 2011    14See Revenue Procedure 2012-11, sec. Illinois state tax forms 2011 4. Illinois state tax forms 2011 01, 2012-7 I. Illinois state tax forms 2011 R. Illinois state tax forms 2011 B. Illinois state tax forms 2011 368, for details. Illinois state tax forms 2011 Appendix. Illinois state tax forms 2011 Sample Articles of Organization The following are examples of Articles of Incorporation (Draft A) and a declaration of trust (Draft B) that contain the required information as to purposes and powers of an organization and disposition of its assets upon dissolution. Illinois state tax forms 2011 You should bear in mind that requirements for these instruments may vary under applicable state law. Illinois state tax forms 2011 See Private Foundations and Public Charities , earlier for the special provisions required in a private foundation's governing instrument in order for it to qualify for exemption. Illinois state tax forms 2011 DRAFT A  Articles of Incorporation of the undersigned, a majority of whom are citizens of the United States, desiring to form a Non-Profit Corporation under the Non-Profit Corporation Law of , do hereby certify: First: The name of the Corporation shall be . Illinois state tax forms 2011 Second: The place in this state where the principal office of the Corporation is to be located is the City of , County. Illinois state tax forms 2011 Third: Said corporation is organized exclusively for charitable, religious, educational, and scientific purposes, including, for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Illinois state tax forms 2011 Fourth: The names and addresses of the persons who are the initial trustees of the corporation are as follows: Name , Address Fifth: No part of the net earnings of the corporation shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons, except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article Third hereof. Illinois state tax forms 2011 No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. Illinois state tax forms 2011 Notwithstanding any other provision of these articles, the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or (b) by a corporation, contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Illinois state tax forms 2011   If reference to federal law in articles of incorporation imposes a limitation that is invalid in your state, you may wish to substitute the following for the last sentence of the preceding paragraph: “Notwithstanding any other provision of these articles, this corporation shall not, except to an insubstantial degree, engage in any activities or exercise any powers that are not in furtherance of the purposes of this corporation. Illinois state tax forms 2011 ” Sixth: Upon the dissolution of the corporation, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Illinois state tax forms 2011 Any such assets not so disposed of shall be disposed of by a Court of Competent Jurisdiction of the county in which the principal office of the corporation is then located, exclusively for such purposes or to such organization or organizations, as said Court shall determine, which are organized and operated exclusively for such purposes. Illinois state tax forms 2011   In witness whereof, we have hereunto subscribed our names this day of , 20. Illinois state tax forms 2011 Appendix. Illinois state tax forms 2011 Sample Articles of Organization, continued Draft B The Charitable Trust. Illinois state tax forms 2011 Declaration of Trust made as of the day of , 20 , by , of , and , of , who hereby declare and agree that they have received this day from , as Donor, the sum of Ten Dollars ($10) and that they will hold and manage the same, and any additions to it, in trust, as follows: First: This trust shall be called “The Charitable Trust. Illinois state tax forms 2011 ” Second: The trustees may receive and accept property, whether real, personal, or mixed, by way of gift, bequest, or devise, from any person, firm, trust, or corporation, to be held, administered, and disposed of in accordance with and pursuant to the provisions of this Declaration of Trust; but no gift, bequest, or devise of any such property shall be received and accepted if it is conditioned or limited in such manner as to require the disposition of the income or its principal to any person or organization other than a “charitable organization” or for other than “charitable purposes” within the meaning of such terms as defined in Article Third of this Declaration of Trust, or as shall, in the opinion of the trustees, jeopardize the federal income tax exemption of this trust pursuant to section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Illinois state tax forms 2011 Third: a) The principal and income of all property received and accepted by the trustees to be administered under this Declaration of Trust shall be held in trust by them, and the trustees may make payments or distributions from income or principal, or both, to or for the use of such charitable organizations, within the meaning of that term as defined in paragraph C, in such amounts and for such charitable purposes of the trust as the trustees shall from time to time select and determine; and the trustees may make payments or distributions from income or principal, or both, directly for such charitable purposes, within the meaning of that term as defined in paragraph D, in such amounts as the trustees shall from time to time select and determine without making use of any other charitable organization. Illinois state tax forms 2011 The trustees may also make payments or distributions of all or any part of the income or principal to states, territories, or possessions of the United States, any political subdivision of any of the foregoing, or to the United States or the District of Columbia but only for charitable purposes within the meaning of that term as defined in paragraph D. Illinois state tax forms 2011 Income or principal derived from contributions by corporations shall be distributed by the trustees for use solely within the United States or its possessions. Illinois state tax forms 2011 No part of the net earnings of this trust shall inure or be payable to or for the benefit of any private shareholder or individual, and no substantial part of the activities of this trust shall be the carrying on of propaganda, or otherwise attempting to influence legislation. Illinois state tax forms 2011 No part of the activities of this trust shall be the participation in, or intervention in (including the publishing or distributing of statements), any political campaign on behalf of or in opposition to any candidate for public office. Illinois state tax forms 2011 b) The trust shall continue forever unless the trustees terminate it and distribute all of the principal and income, which action may be taken by the trustees in their discretion at any time. Illinois state tax forms 2011 On such termination, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Illinois state tax forms 2011 The donor authorizes and empowers the trustees to form and organize a nonprofit corporation limited to the uses and purposes provided for in this Declaration of Trust, such corporation to be organized under the laws of any state or under the laws of the United States as may be determined by the trustees; such corporation when organized to have power to administer and control the affairs and property and to carry out the uses, objects, and purposes of this trust. Illinois state tax forms 2011 Upon the creation and organization of such corporation, the trustees are authorized and empowered to convey, transfer, and deliver to such corporation all the property and assets to which this trust may be or become entitled. Illinois state tax forms 2011 The charter, bylaws, and other provisions for the organization and management of such corporation and its affairs and property shall be such as the trustees shall determine, consistent with the provisions of this paragraph. Illinois state tax forms 2011 c) In this Declaration of Trust and in any amendments to it, references to “charitable organizations” or “charitable organization” mean corporations, trusts, funds, foundations, or community chests created or organized in the United States or in any of its possessions, whether under the laws of the United States, any state or territory, the District of Columbia, or any possession of the United States, organized and operated exclusively for charitable purposes, no part of the net earnings of which inures or is payable to or for the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, and which do not participate in or intervene in (including the publishing or distributing of statements) any political campaign on behalf of or in opposition to any candidate for public office. Illinois state tax forms 2011 It is intended that the organization described in this paragraph C shall be entitled to exemption from federal income tax under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Illinois state tax forms 2011 d) In this Declaration of Trust and in any amendments to it, the term “charitable purposes” shall be limited to and shall include only religious, charitable, scientific, literary, or educational purposes within the meaning of those terms as used in section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, but only such purposes as also constitute public charitable purposes under the law of trusts of the State of. Illinois state tax forms 2011 Fourth: This Declaration of Trust may be amended at any time or times by written instrument or instruments signed and sealed by the trustees, and acknowledged by any of the trustees, provided that no amendment shall authorize the trustees to conduct the affairs of this trust in any manner or for any purpose contrary to the provisions of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Illinois state tax forms 2011 An amendment of the provisions of this Article Fourth (or any amendment to it) shall be valid only if and to the extent that such amendment further restricts the trustees' amending power. Illinois state tax forms 2011 All instruments amending this Declaration of Trust shall be noted upon or kept attached to the executed original of this Declaration of Trust held by the trustees. Illinois state tax forms 2011 Fifth: Any trustee under this Declaration of Trust may, by written instrument, signed and acknowledged, resign his office. Illinois state tax forms 2011 The number of trustees shall be at all times not less than two, and whenever for any reason the number is reduced to one, there shall be, and at any other time there may be, appointed one or more additional trustees. Illinois state tax forms 2011 Appointments shall be made by the trustee or trustees for the time in office by written instruments signed and acknowledged. Illinois state tax forms 2011 Any succeeding or additional trustee shall, upon his or her acceptance of the office by written instrument signed and acknowledged, have the same powers, rights, and duties, and the same title to the trust estate jointly with the surviving or remaining trustee or trustees as if originally appointed. Illinois state tax forms 2011  None of the trustees shall be required to furnish any bond or surety. Illinois state tax forms 2011 None of them shall be responsible or liable for the acts or omissions of any other of the trustees or of any predecessor or of a custodian, agent, depositary, or counsel selected with reasonable care. Illinois state tax forms 2011  The one or more trustees, whether original or successor, for the time being in office, shall have full authority to act even though one or more vacancies may exist. Illinois state tax forms 2011 A trustee may, by appropriate written instrument, delegate all or any part of his or her powers to another or others of the trustees for such periods and subject to such conditions as such delegating trustee may determine. Illinois state tax forms 2011  The trustees serving under this Declaration of Trust are authorized to pay to themselves amounts for reasonable expenses incurred and reasonable compensation for services rendered in the administration of this trust, but in no event shall any trustee who has made a contribution to this trust ever receive any compensation thereafter. Illinois state tax forms 2011 Sixth: In extension and not in limitation of the common law and statutory powers of trustees and other powers granted in this Declaration of Trust, the trustees shall have the following discretionary powers. Illinois state tax forms 2011 a) To invest and reinvest the principal and income of the trust in such property, real, personal, or mixed, and in such manner as they shall deem proper, and from time to time to change investments as they shall deem advisable; to invest in or retain any stocks, shares, bonds, notes, obligations, or personal or real property (including without limitation any interests in or obligations of any corporation, association, business trust, investment trust, common trust fund, or investment company) although some or all of the property so acquired or retained is of a kind or size which but for this express authority would not be considered proper and although all of the trust funds are invested in the securities of one company. Illinois state tax forms 2011 No principal or income, however, shall be loaned, directly or indirectly, to any trustee or to anyone else, corporate or otherwise, who has at any time made a contribution to this trust, nor to anyone except on the basis of an adequate interest charge and with adequate security. Illinois state tax forms 2011 b) To sell, lease, or exchange any personal, mixed, or real property, at public auction or by private contract, for such consideration and on such terms as to credit or otherwise, and to make such contracts and enter into such undertakings relating to the trust property, as they consider advisable, whether or not such leases or contracts may extend beyond the duration of the trust. Illinois state tax forms 2011 c) To borrow money for such periods, at such rates of interest, and upon such terms as the trustees consider advisable, and as security for such loans to mortgage or pledge any real or personal property with or without power of sale; to acquire or hold any real or personal property, subject to any mortgage or pledge on or of property acquired or held by this trust. Illinois state tax forms 2011 d) To execute and deliver deeds, assignments, transfers, mortgages, pledges, leases, covenants, contracts, promissory notes, releases, and other instruments, sealed or unsealed, incident to any transaction in which they engage. Illinois state tax forms 2011 e) To vote, to give proxies, to participate in the reorganization, merger, or consolidation of any concern, or in the sale, lease, disposition, or distribution of its assets; to join with other security holders in acting through a committee, depositary, voting trustees, or otherwise, and in this connection to delegate authority to such committee, depositary, or trustees and to deposit securities with them or transfer securities to them; to pay assessments levied on securities or to exercise subscription rights in respect of securities. Illinois state tax forms 2011 f) To employ a bank or trust company as custodian of any funds or securities and to delegate to it such powers as they deem appropriate; to hold trust property without indication of fiduciary capacity but only in the name of a registered nominee, provided the trust property is at all times identified as such on the books of the trust; to keep any or all of the trust property or funds in any place or places in the United States of America; to employ clerks, accountants, investment counsel, investment agents, and any special services, and to pay the reasonable compensation and expenses of all such services in addition to the compensation of the trustees. Illinois state tax forms 2011 Seventh: The trustees' powers are exercisable solely in the fiduciary capacity consistent with and in furtherance of the charitable purposes of this trust as specified in Article Third and not otherwise. Illinois state tax forms 2011 Eighth: In this Declaration of Trust and in any amendment to it, references to “trustees” mean the one or more trustees, whether original or successor, for the time being in office. Illinois state tax forms 2011 Ninth: Any person may rely on a copy, certified by a notary public, of the executed original of this Declaration of Trust held by the trustees, and of any of the notations on it and writings attached to it, as fully as he might rely on the original documents themselves. Illinois state tax forms 2011 Any such person may rely fully on any statements of fact certified by anyone who appears from such original documents or from such certified copy to be a trustee under this Declaration of Trust. Illinois state tax forms 2011 No one dealing with the trustees need inquire concerning the validity of anything the trustees purport to do. Illinois state tax forms 2011 No one dealing with the trustees need see to the application of anything paid or transferred to or upon the order of the trustees of the trust. Illinois state tax forms 2011 Tenth: This Declaration of Trust is to be governed in all respects by the laws of the State of . Illinois state tax forms 2011 Trustee Trustee Prev  Up  Next   Home   More Online Publications

The Illinois State Tax Forms 2011

Illinois state tax forms 2011 Publication 929 - Main Content Table of Contents Part 1. Illinois state tax forms 2011 Rules for All Dependents Filing RequirementsEarned Income Only Unearned Income Only Both Earned and Unearned Income Other Filing Requirements Should a Return Be Filed Even If Not Required? Responsibility for Child's ReturnThird party designee. Illinois state tax forms 2011 Designated as representative. Illinois state tax forms 2011 IRS notice. Illinois state tax forms 2011 Standard DeductionStandard Deduction of Zero Dependent's Own Exemption Withholding From WagesExceptions. Illinois state tax forms 2011 Part 2. Illinois state tax forms 2011 Tax on Unearned Income of Certain ChildrenWhich Parent's Return To Use Parent's Election To Report Child's Interest and DividendsEffect of Making the Election Figuring Child's Income Figuring Additional Tax Tax for Certain Children Who Have Unearned IncomeProviding Parental Information (Form 8615, Lines A–C) Step 1. Illinois state tax forms 2011 Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. Illinois state tax forms 2011 Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. Illinois state tax forms 2011 Figuring the Child's Tax (Form 8615, Part III) Alternative Minimum Tax Illustrated Example Part 1. Illinois state tax forms 2011 Rules for All Dependents This part of the publication discusses the filing requirements for dependents, who is responsible for a child's return, how to figure a dependent's standard deduction and exemption (if any), and whether a dependent can claim exemption from federal income tax withholding. Illinois state tax forms 2011 Filing Requirements Whether a dependent has to file a return generally depends on the amount of the dependent's earned and unearned income and whether the dependent is married, is age 65 or older, or is blind. Illinois state tax forms 2011 A dependent may have to file a return even if his or her income is less than the amount that would normally require a return. Illinois state tax forms 2011 See Other Filing Requirements, later. Illinois state tax forms 2011 The following sections apply to dependents with: Earned income only, Unearned income only, and Both earned and unearned income. Illinois state tax forms 2011  To find out whether a dependent must file, read the section that applies, or use Table 1. Illinois state tax forms 2011 Earned Income Only A dependent whose gross income is only earned income must file a return if the gross income is more than the amount listed in the following table. Illinois state tax forms 2011 Marital Status Amount Single   Under 65 and not blind $6,100 Either 65 or older or blind $7,600 65 or older and blind $9,100 Married*   Under 65 and not blind $6,100 Either 65 or older or blind $7,300 65 or older and blind $8,500 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). Illinois state tax forms 2011 Example. Illinois state tax forms 2011 William is 16. Illinois state tax forms 2011 His mother claims an exemption for him on her income tax return. Illinois state tax forms 2011 He worked part time on weekends during the school year and full time during the summer. Illinois state tax forms 2011 He earned $7,000 in wages. Illinois state tax forms 2011 He did not have any unearned income. Illinois state tax forms 2011 He must file a tax return because he has earned income only and his gross income is more than $6,100. Illinois state tax forms 2011 If he is blind, he does not have to file a return because his gross income is not more than $7,600. Illinois state tax forms 2011 Unearned Income Only A dependent whose gross income is only unearned income must file a return if the gross income is more than the amount listed in the following table. Illinois state tax forms 2011 Marital Status Amount Single   Under 65 and not blind $1,000 Either 65 or older or blind $2,500 65 or older and blind $4,000 Married*   Under 65 and not blind $1,000 Either 65 or older or blind $2,200 65 or older and blind $3,400 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). Illinois state tax forms 2011 Example. Illinois state tax forms 2011 Sarah is 18 and single. Illinois state tax forms 2011 Her parents can claim an exemption for her on their income tax return. Illinois state tax forms 2011 She received $1,970 of taxable interest and dividend income. Illinois state tax forms 2011 She did not work during the year. Illinois state tax forms 2011 She must file a tax return because she has unearned income only and her gross income is more than $1,000. Illinois state tax forms 2011 If she is blind, she does not have to file a return because she has unearned income only and her gross income is not more than $2,500. Illinois state tax forms 2011 Election to report child's unearned income on parent's return. Illinois state tax forms 2011   A parent of a child under age 19 (or under age 24 if a full-time student) may be able to elect to include the child's interest and dividend income on the parent's return. Illinois state tax forms 2011 See Parent's Election To Report Child's Interest and Dividends in Part 2. Illinois state tax forms 2011 If the parent makes this election, the child does not have to file a return. Illinois state tax forms 2011 Both Earned and Unearned Income A dependent who has both earned and unearned income generally must file a return if the dependent's gross income is more than line 5 of the following worksheet. Illinois state tax forms 2011 Filing Requirement Worksheet for Most Dependents 1. Illinois state tax forms 2011 Enter dependent's earned income plus $350     2. Illinois state tax forms 2011 Minimum amount   $1,000 3. Illinois state tax forms 2011 Compare lines 1 and 2. Illinois state tax forms 2011 Enter the larger amount     4. Illinois state tax forms 2011 Maximum amount   6,100 5. Illinois state tax forms 2011 Compare lines 3 and 4. Illinois state tax forms 2011 Enter the smaller amount     6. Illinois state tax forms 2011 Enter the dependent's gross income. Illinois state tax forms 2011 If line 6 is more than line 5, the dependent must file an income tax return. Illinois state tax forms 2011 If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Illinois state tax forms 2011       Table 1. Illinois state tax forms 2011 2013 Filing Requirements for Dependents If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. Illinois state tax forms 2011   See the definitions of “dependent,”“earned income,”“unearned income,” and “gross income” in the Glossary. Illinois state tax forms 2011   Single dependents—Were you either age 65 or older or blind?     No. Illinois state tax forms 2011 You must file a return if any of the following apply. Illinois state tax forms 2011       Your unearned income was over $1,000. Illinois state tax forms 2011 Your earned income was over $6,100. Illinois state tax forms 2011 Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Illinois state tax forms 2011         Yes. Illinois state tax forms 2011 You must file a return if any of the following apply. Illinois state tax forms 2011     Your unearned income was over $2,500 ($4,000 if 65 or older and blind), Your earned income was over $7,600 ($9,100 if 65 or older and blind), Your gross income was more than the larger of—       $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Illinois state tax forms 2011       Married dependents—Were you either age 65 or older or blind?     No. Illinois state tax forms 2011 You must file a return if any of the following apply. Illinois state tax forms 2011       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Illinois state tax forms 2011 Your unearned income was over $1,000. Illinois state tax forms 2011 Your earned income was over $6,100. Illinois state tax forms 2011 Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Illinois state tax forms 2011       Yes. Illinois state tax forms 2011 You must file a return if any of the following apply. Illinois state tax forms 2011       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Illinois state tax forms 2011 Your unearned income was over $2,200 ($3,400 if 65 or older and blind), Your earned income was over $7,300 ($8,500 if 65 or older and blind), Your gross income was more than the larger of—       $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Illinois state tax forms 2011       Example 1. Illinois state tax forms 2011 Joe is 20, single, not blind, and a full-time college student. Illinois state tax forms 2011 He does not provide more than half of his own support, and his parents claim an exemption for him on their income tax return. Illinois state tax forms 2011 He received $200 taxable interest income and earned $2,750 from a part-time job. Illinois state tax forms 2011 He does not have to file a tax return because his gross income of $2,950 ($200 interest plus $2,750 in wages) is not more than $3,100, the amount on line 5 of his filled-in Filing Requirement Worksheet for Most Dependents (shown next). Illinois state tax forms 2011 Filled-in Example 1 Filing Requirement Worksheet  for Most Dependents 1. Illinois state tax forms 2011 Enter dependent's earned income plus $350   $ 3,100 2. Illinois state tax forms 2011 Minimum amount   1,000 3. Illinois state tax forms 2011 Compare lines 1 and 2. Illinois state tax forms 2011 Enter the larger amount   3,100 4. Illinois state tax forms 2011 Maximum amount   6,100 5. Illinois state tax forms 2011 Compare lines 3 and 4. Illinois state tax forms 2011 Enter the smaller amount   3,100 6. Illinois state tax forms 2011 Enter the dependent's gross income. Illinois state tax forms 2011 If line 6 is more than line 5, the dependent must file an income tax return. Illinois state tax forms 2011 If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Illinois state tax forms 2011   $ 2,950   Example 2. Illinois state tax forms 2011 The facts are the same as in Example 1 except that Joe had $600 taxable interest income. Illinois state tax forms 2011 He must file a tax return because his gross income of $3,350 ($600 interest plus $2,750 wages) is more than $3,100, the amount on line 5 of his filled-in worksheet (shown next). Illinois state tax forms 2011 Filled-in Example 2 Filing Requirement Worksheet for Most Dependents 1. Illinois state tax forms 2011 Enter dependent's earned income plus $350   $ 3,100 2. Illinois state tax forms 2011 Minimum amount   1,000 3. Illinois state tax forms 2011 Compare lines 1 and 2. Illinois state tax forms 2011 Enter the larger amount   3,100 4. Illinois state tax forms 2011 Maximum amount   6,100 5. Illinois state tax forms 2011 Compare lines 3 and 4. Illinois state tax forms 2011 Enter the smaller amount   3,100 6. Illinois state tax forms 2011 Enter the dependent's gross income. Illinois state tax forms 2011 If line 6 is more than line 5, the dependent must file an income tax return. Illinois state tax forms 2011 If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Illinois state tax forms 2011   $ 3,350   Age 65 or older or blind. Illinois state tax forms 2011 A dependent who is age 65 or older or blind must file a return if his or her gross income is more than line 7 of the following worksheet. Illinois state tax forms 2011 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Illinois state tax forms 2011 Enter dependent's earned income plus $350     2. Illinois state tax forms 2011 Minimum amount   $1,000 3. Illinois state tax forms 2011 Compare lines 1 and 2. Illinois state tax forms 2011 Enter the larger amount     4. Illinois state tax forms 2011 Maximum amount   6,100 5. Illinois state tax forms 2011 Compare lines 3 and 4. Illinois state tax forms 2011 Enter the smaller amount     6. Illinois state tax forms 2011 Enter the amount from the following table that applies to the dependent       Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. Illinois state tax forms 2011 Add lines 5 and 6. Illinois state tax forms 2011 Enter the total     8. Illinois state tax forms 2011 Enter the dependent's gross income. Illinois state tax forms 2011 If line 8 is more than line 7, the dependent must file an income tax return. Illinois state tax forms 2011 If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more     Example 3. Illinois state tax forms 2011 The facts are the same as in Example 2 except that Joe is also blind. Illinois state tax forms 2011 He does not have to file a return because his gross income of $3,350 is not more than $4,600, the amount on line 7 of his filled-in Filing Requirement Worksheet for Dependents Who Are Age 65 or Older or Blind (shown next). Illinois state tax forms 2011   Filled-in Example 3 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Illinois state tax forms 2011 Enter dependent's earned income plus $350   $3,100 2. Illinois state tax forms 2011 Minimum amount   1,000 3. Illinois state tax forms 2011 Compare lines 1 and 2. Illinois state tax forms 2011 Enter the larger amount   3,100 4. Illinois state tax forms 2011 Maximum amount   6,100 5. Illinois state tax forms 2011 Compare lines 3 and 4. Illinois state tax forms 2011 Enter the smaller amount   3,100 6. Illinois state tax forms 2011 Enter the amount from the following table that applies to the dependent   1,500   Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. Illinois state tax forms 2011 Add lines 5 and 6. Illinois state tax forms 2011 Enter the total   4,600 8. Illinois state tax forms 2011 Enter the dependent's gross income. Illinois state tax forms 2011 If line 8 is more than line 7, the dependent must file an income tax return. Illinois state tax forms 2011 If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more   $3,350 Other Filing Requirements Some dependents may have to file a tax return even if their income is less than the amount that would normally require them to file a return. Illinois state tax forms 2011 A dependent must file a tax return if he or she owes any other taxes, such as: Social security and Medicare taxes on tips not reported to his or her employer or on wages received from an employer who did not withhold these taxes, Uncollected social security and Medicare or railroad retirement taxes on tips reported to his or her employer or on group-term life insurance, Alternative minimum tax, Additional tax on a health savings account from Form 8889, Part III, Recapture taxes, such as the tax from recapture of an education credit, or Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Illinois state tax forms 2011 But if the dependent is filing a return only because of this tax, the dependent can file Form 5329 by itself. Illinois state tax forms 2011 A dependent must also file a tax return if he or she: Had wages of $108. Illinois state tax forms 2011 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes, or Had net earnings from self-employment of at least $400. Illinois state tax forms 2011 Spouse itemizes. Illinois state tax forms 2011   A dependent must file a return if the dependent's spouse itemizes deductions on a separate return and the dependent has $5 or more of gross income (earned and/or unearned). Illinois state tax forms 2011 Should a Return Be Filed Even If Not Required? Even if a dependent does not meet any of the filing requirements discussed earlier, he or she should file a tax return if either of the following applies. Illinois state tax forms 2011 Income tax was withheld from his or her income. Illinois state tax forms 2011 He or she qualifies for the earned income credit, additional child tax credit, health coverage tax credit, or refundable American opportunity education credit. Illinois state tax forms 2011 See the tax return instructions to find out who qualifies for these credits. Illinois state tax forms 2011  By filing a return, the dependent can get a refund. Illinois state tax forms 2011 Responsibility for Child's Return Generally, a child is responsible for filing his or her own tax return and for paying any tax, penalties, or interest on that return. Illinois state tax forms 2011 If a child cannot file his or her own return for any reason, such as age, the child's parent, guardian, or other legally responsible person must file it for the child. Illinois state tax forms 2011 Signing the child's return. Illinois state tax forms 2011   If the child cannot sign his or her return, a parent or guardian must sign the child's name followed by the words “By (signature), parent (or guardian) for minor child. Illinois state tax forms 2011 ” Authority of parent or guardian. Illinois state tax forms 2011   A parent or guardian who signs a return on a child's behalf can deal with the IRS on all matters connected with the return. Illinois state tax forms 2011   In general, a parent or guardian who does not sign the child's return can only provide information concerning the child's return and pay the child's tax. Illinois state tax forms 2011 That parent or guardian is not entitled to receive information from the IRS or legally bind the child to a tax liability arising from the return. Illinois state tax forms 2011 Third party designee. Illinois state tax forms 2011   A child's parent or guardian who does not sign the child's return may be authorized, as a third party designee, to discuss the processing of the return with the IRS as well as provide information concerning the return. Illinois state tax forms 2011 The child or the person signing the return on the child's behalf must check the “Yes” box in the “Third Party Designee” area of the return and name the parent or guardian as the designee. Illinois state tax forms 2011   If designated, a parent or guardian can respond to certain IRS notices and receive information about the processing of the return and the status of a refund or payment. Illinois state tax forms 2011 This designation does not authorize the parent or guardian to receive any refund check, bind the child to any tax liability, or otherwise represent the child before the IRS. Illinois state tax forms 2011 See the return instructions for more information. Illinois state tax forms 2011 Designated as representative. Illinois state tax forms 2011   A parent or guardian who does not sign the child's return may be designated as the child's representative by the child or the person signing the return on the child's behalf. Illinois state tax forms 2011 Form 2848, Power of Attorney and Declaration of Representative, is used to designate a child's representative. Illinois state tax forms 2011 See Publication 947, Practice Before the IRS and Power of Attorney, for more information. Illinois state tax forms 2011   If designated, a parent or guardian can receive information about the child's return but cannot legally bind the child to a tax liability unless authorized to do so by the law of the state in which the child lives. Illinois state tax forms 2011 IRS notice. Illinois state tax forms 2011   If you or the child receives a notice from the IRS concerning the child's return or tax liability, you should immediately inform the IRS that the notice concerns a child. Illinois state tax forms 2011 The notice will show who to contact. Illinois state tax forms 2011 The IRS will try to resolve the matter with the parent(s) or guardian(s) of the child consistent with their authority. Illinois state tax forms 2011 Child's earnings. Illinois state tax forms 2011   For federal income tax purposes, amounts a child earns by performing services are included in the gross income of the child and not the gross income of the parent. Illinois state tax forms 2011 This is true even if, under state law, the parent has the right to the earnings and may actually have received them. Illinois state tax forms 2011 If the child does not pay the tax due on this income, the parent may be liable for the tax. Illinois state tax forms 2011 Child's expenses. Illinois state tax forms 2011   Deductions for payments that are made out of a child's earnings are the child's, even if the payments are made by the parent. Illinois state tax forms 2011 Example. Illinois state tax forms 2011 You made payments on your child's behalf that are deductible as a business expense and a charitable contribution. Illinois state tax forms 2011 You made the payments out of your child's earnings. Illinois state tax forms 2011 These items can be deducted only on the child's return. Illinois state tax forms 2011 Standard Deduction The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the larger of: $1,000, or The individual's earned income plus $350, but not more than the regular standard deduction (generally $6,100). Illinois state tax forms 2011 However, the standard deduction may be higher for a dependent who: Is 65 or older, or Is blind. Illinois state tax forms 2011 Certain dependents cannot claim any standard deduction. Illinois state tax forms 2011 See Standard Deduction of Zero , later. Illinois state tax forms 2011 Worksheet 1. Illinois state tax forms 2011   Use Worksheet 1 to figure the dependent's standard deduction. Illinois state tax forms 2011 Worksheet 1. Illinois state tax forms 2011 Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. Illinois state tax forms 2011 If you were 65 or older and/or blind, check the correct number of boxes below. Illinois state tax forms 2011 Put the total number of boxes checked in box c and go to line 1. Illinois state tax forms 2011 a. Illinois state tax forms 2011 You 65 or older   Blind   b. Illinois state tax forms 2011 Your spouse, if claiming  spouse's exemption 65 or older   Blind   c. Illinois state tax forms 2011 Total boxes checked         1. Illinois state tax forms 2011 Enter your earned income (defined below) plus $350. Illinois state tax forms 2011 If none, enter -0-. Illinois state tax forms 2011 1. Illinois state tax forms 2011     2. Illinois state tax forms 2011 Minimum amount. Illinois state tax forms 2011   2. Illinois state tax forms 2011 $1,000   3. Illinois state tax forms 2011 Compare lines 1 and 2. Illinois state tax forms 2011 Enter the larger of the two amounts here. Illinois state tax forms 2011 3. Illinois state tax forms 2011     4. Illinois state tax forms 2011 Enter on line 4 the amount shown below for your filing status. Illinois state tax forms 2011       Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 4. Illinois state tax forms 2011     5. Illinois state tax forms 2011 Standard deduction. Illinois state tax forms 2011         a. Illinois state tax forms 2011 Compare lines 3 and 4. Illinois state tax forms 2011 Enter the smaller amount here. Illinois state tax forms 2011 If under 65 and not blind, stop here. Illinois state tax forms 2011 This is your standard deduction. Illinois state tax forms 2011 Otherwise, go on to line 5b. Illinois state tax forms 2011 5a. Illinois state tax forms 2011     b. Illinois state tax forms 2011 If 65 or older or blind, multiply $1,500 ($1,200 if married) by the number in box c above. Illinois state tax forms 2011 Enter the result here. Illinois state tax forms 2011 5b. Illinois state tax forms 2011     c. Illinois state tax forms 2011 Add lines 5a and 5b. Illinois state tax forms 2011 This is your standard deduction for 2013. Illinois state tax forms 2011 5c. Illinois state tax forms 2011     Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Illinois state tax forms 2011 It also includes any amount received as a scholarship that you must include in income. Illinois state tax forms 2011   Example 1. Illinois state tax forms 2011 Michael is single, age 15, and not blind. Illinois state tax forms 2011 His parents can claim him as a dependent on their tax return. Illinois state tax forms 2011 He has taxable interest income of $800 and wages of $150. Illinois state tax forms 2011 He enters $500 (his earned income plus $350) on line 1 of Worksheet 1. Illinois state tax forms 2011 On line 3, he enters $1,000, the larger of $500 or $1,000. Illinois state tax forms 2011 Michael enters $6,100 on line 4. Illinois state tax forms 2011 On line 5a, he enters $1,000, the smaller of $1,000 or $6,100. Illinois state tax forms 2011 His standard deduction is $1,000. Illinois state tax forms 2011 Example 2. Illinois state tax forms 2011 Judy, a full-time student, is single, age 22, and not blind. Illinois state tax forms 2011 Her parents can claim her as a dependent on their tax return. Illinois state tax forms 2011 She has dividend income of $275 and wages of $2,500. Illinois state tax forms 2011 She enters $2,850 (her earned income plus $350) on line 1 of Worksheet 1. Illinois state tax forms 2011 On line 3, she enters $2,850, the larger of $2,850 or $1,000. Illinois state tax forms 2011 She enters $6,100 on line 4. Illinois state tax forms 2011 On line 5a, she enters $2,850 (the smaller of $2,850 or $6,100) as her standard deduction. Illinois state tax forms 2011 Example 3. Illinois state tax forms 2011 Amy, who is single, is claimed as a dependent on her parents' tax return. Illinois state tax forms 2011 She is 18 years old and blind. Illinois state tax forms 2011 She has taxable interest income of $1,000 and wages of $2,000. Illinois state tax forms 2011 She enters $2,350 (her earned income plus $350) on line 1 of Worksheet 1. Illinois state tax forms 2011 She enters $2,350 (the larger of $2,350 or $1,000) on line 3, $6,100 on line 4, and $2,350 (the smaller of $2,350 or $6,100) on line 5a. Illinois state tax forms 2011 Because Amy is blind, she checks the box for blindness and enters “1” in box c at the top of Worksheet 1. Illinois state tax forms 2011 She enters $1,500 (the number in box c times $1,500) on line 5b. Illinois state tax forms 2011 Her standard deduction on line 5c is $3,850 ($2,350 + $1,500). Illinois state tax forms 2011 Standard Deduction of Zero The standard deduction for the following dependents is zero. Illinois state tax forms 2011 A married dependent filing a separate return whose spouse itemizes deductions. Illinois state tax forms 2011 A dependent who files a return for a period of less than 12 months due to a change in his or her annual accounting period. Illinois state tax forms 2011 A nonresident or dual-status alien dependent, unless the dependent is married to a U. Illinois state tax forms 2011 S. Illinois state tax forms 2011 citizen or resident alien at the end of the year and chooses to be treated as a U. Illinois state tax forms 2011 S. Illinois state tax forms 2011 resident for the year. Illinois state tax forms 2011 See Publication 519, U. Illinois state tax forms 2011 S. Illinois state tax forms 2011 Tax Guide for Aliens, for information on making this choice. Illinois state tax forms 2011 Example. Illinois state tax forms 2011 Jennifer, who is a dependent of her parents, is entitled to file a joint return with her husband. Illinois state tax forms 2011 However, her husband elects to file a separate return and itemize his deductions. Illinois state tax forms 2011 Because he itemizes, Jennifer's standard deduction on her return is zero. Illinois state tax forms 2011 She can, however, itemize any of her allowable deductions. Illinois state tax forms 2011 Dependent's Own Exemption A person who can be claimed as a dependent on another taxpayer's return cannot claim his or her own exemption. Illinois state tax forms 2011 This is true even if the other taxpayer does not actually claim the exemption. Illinois state tax forms 2011 Example. Illinois state tax forms 2011 James and Barbara can claim their child, Ben, as a dependent on their return. Illinois state tax forms 2011 Ben is a college student who works during the summer and must file a tax return. Illinois state tax forms 2011 Ben cannot claim his own exemption on his return. Illinois state tax forms 2011 This is true even if James and Barbara do not claim him as a dependent on their return. Illinois state tax forms 2011 Withholding From Wages Employers generally withhold federal income tax, social security tax, and Medicare tax from an employee's wages. Illinois state tax forms 2011 If the employee claims exemption from withholding on Form W-4, the employer will not withhold federal income tax. Illinois state tax forms 2011 The exemption from withholding does not apply to social security and Medicare taxes. Illinois state tax forms 2011 Conditions for exemption from withholding. Illinois state tax forms 2011   An employee can claim exemption from withholding for 2014 only if he or she meets both of the following conditions. Illinois state tax forms 2011 For 2013, the employee had a right to a refund of all federal income tax withheld because he or she had no tax liability. Illinois state tax forms 2011 For 2014, the employee expects a refund of all federal income tax withheld because he or she expects to have no tax liability. Illinois state tax forms 2011 Dependents. Illinois state tax forms 2011   An employee who is a dependent ordinarily cannot claim exemption from withholding if both of the following are true. Illinois state tax forms 2011 The employee's gross income will be more than $1,000, the minimum standard deduction for 2014. Illinois state tax forms 2011 The employee's unearned income will be more than $350. Illinois state tax forms 2011 Exceptions. Illinois state tax forms 2011   An employee may be able to claim exemption from withholding even if the employee is a dependent, if the employee: Is age 65 or older, Is blind, or Will claim on his or her 2014 tax return: Adjustments to income, Tax credits, or Itemized deductions. Illinois state tax forms 2011 The above exceptions do not apply to supplemental wages greater than $1,000,000. Illinois state tax forms 2011 For more information, see Exemption From Withholding in chapter 1 of Publication 505. Illinois state tax forms 2011 Example. Illinois state tax forms 2011 Guy is 17 and a student. Illinois state tax forms 2011 During the summer he works part time at a grocery store. Illinois state tax forms 2011 He expects to earn about $1,200 this year. Illinois state tax forms 2011 He also worked at the store last summer and received a refund of all his withheld income tax because he did not have a tax liability. Illinois state tax forms 2011 The only other income he expects during the year is $375 interest on a savings account. Illinois state tax forms 2011 He expects that his parents will be able to claim him as a dependent on their tax return. Illinois state tax forms 2011 He is not blind and will not claim adjustments to income, itemized deductions, a higher standard deduction, or tax credits on his return. Illinois state tax forms 2011 Guy cannot claim exemption from withholding when he fills out Form W-4 because his parents will be able to claim him as a dependent, his gross income will be more than $1,000 (the minimum standard deduction amount) and his unearned income will be more than $350. Illinois state tax forms 2011 Claiming exemption from withholding. Illinois state tax forms 2011    To claim exemption from withholding, an employee must enter “Exempt” in the space provided on Form W-4, line 7. Illinois state tax forms 2011 The employee must complete the rest of the form, as explained in the form instructions, and give it to his or her employer. Illinois state tax forms 2011 Renewing an exemption from withholding. Illinois state tax forms 2011   An exemption from withholding is good for only one year. Illinois state tax forms 2011 An employee must file a new Form W-4 by February 15 each year to continue the exemption. Illinois state tax forms 2011 Part 2. Illinois state tax forms 2011 Tax on Unearned Income of Certain Children The two rules that follow may affect the tax on the unearned income of certain children. Illinois state tax forms 2011 If the child's interest and dividend income (including capital gain distributions) total less than $10,000, the child's parent may be able to choose to include that income on the parent's return rather than file a return for the child. Illinois state tax forms 2011 (See Parent's Election To Report Child's Interest and Dividends , later. Illinois state tax forms 2011 ) If the child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Illinois state tax forms 2011 (See Tax for Certain Children Who Have Unearned Income , later. Illinois state tax forms 2011 ) For these rules, the term “child” includes a legally adopted child and a stepchild. Illinois state tax forms 2011 These rules apply whether or not the child is a dependent. Illinois state tax forms 2011 These rules do not apply if neither of the child's parents were living at the end of the year. Illinois state tax forms 2011 Which Parent's Return To Use If a child's parents are married to each other and file a joint return, use the joint return to figure the tax on the child's unearned income. Illinois state tax forms 2011 The tax rate and other return information from that return are used to figure the child's tax as explained later under Tax for Certain Children Who Have Unearned Income . Illinois state tax forms 2011 Parents Who Do Not File a Joint Return For parents who do not file a joint return, the following discussions explain which parent's tax return must be used to figure the tax. Illinois state tax forms 2011 Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . Illinois state tax forms 2011 Parents are married. Illinois state tax forms 2011   If the child's parents file separate returns, use the return of the parent with the greater taxable income. Illinois state tax forms 2011 Parents not living together. Illinois state tax forms 2011   If the child's parents are married to each other but not living together, and the parent with whom the child lives (the custodial parent) is considered unmarried, use the return of the custodial parent. Illinois state tax forms 2011 If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. Illinois state tax forms 2011   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in Publication 501. Illinois state tax forms 2011 Parents are divorced. Illinois state tax forms 2011   If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent. Illinois state tax forms 2011 Custodial parent remarried. Illinois state tax forms 2011   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Illinois state tax forms 2011 Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. Illinois state tax forms 2011 Do not use the return of the noncustodial parent. Illinois state tax forms 2011   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. Illinois state tax forms 2011 If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. Illinois state tax forms 2011 Parents never married. Illinois state tax forms 2011   If a child's parents have never been married to each other, but lived together all year, use the return of the parent with the greater taxable income. Illinois state tax forms 2011 If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. Illinois state tax forms 2011 Widowed parent remarried. Illinois state tax forms 2011   If a widow or widower remarries, the new spouse is treated as the child's other parent. Illinois state tax forms 2011 The rules explained earlier under Custodial parent remarried apply. Illinois state tax forms 2011 Parent's Election To Report Child's Interest and Dividends You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. Illinois state tax forms 2011 If you do, your child will not have to file a return. Illinois state tax forms 2011 You can make this election only if all the following conditions are met. Illinois state tax forms 2011 Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. Illinois state tax forms 2011 Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Illinois state tax forms 2011 The child's gross income was less than $10,000. Illinois state tax forms 2011 The child is required to file a return unless you make this election. Illinois state tax forms 2011 The child does not file a joint return for the year. Illinois state tax forms 2011 No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and social security number. Illinois state tax forms 2011 No federal income tax was withheld from your child's income under the backup withholding rules. Illinois state tax forms 2011 You are the parent whose return must be used when applying the special tax rules for children. Illinois state tax forms 2011 (See Which Parent's Return To Use , earlier. Illinois state tax forms 2011 ) These conditions are also shown in Figure 1. Illinois state tax forms 2011 Certain January 1 birthdays. Illinois state tax forms 2011   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. Illinois state tax forms 2011 You cannot make this election for such a child unless the child was a full-time student. Illinois state tax forms 2011   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Illinois state tax forms 2011 You cannot make this election for such a child. Illinois state tax forms 2011 How to make the election. Illinois state tax forms 2011    Make the election by attaching Form 8814 to your Form 1040 or Form 1040NR. Illinois state tax forms 2011 (If you make this election, you cannot file Form 1040A or Form 1040EZ. Illinois state tax forms 2011 ) Attach a separate Form 8814 for each child for whom you make the election. Illinois state tax forms 2011 You can make the election for one or more children and not for others. Illinois state tax forms 2011 Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. Illinois state tax forms 2011 Rate may be higher. Illinois state tax forms 2011   If your child received qualified dividends or capital gain distributions, you may pay up to $100 more tax if you make this election instead of filing a separate tax return for the child. Illinois state tax forms 2011 This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. Illinois state tax forms 2011 However, if you file a separate return for the child, the tax rate may be as low as 0% (zero percent) because of the preferential tax rates for qualified dividends and capital gain distributions. Illinois state tax forms 2011 Deductions you cannot take. Illinois state tax forms 2011   By making the Form 8814 election, you cannot take any of the following deductions that the child would be entitled to on his or her return. Illinois state tax forms 2011 The additional standard deduction if the child is blind. Illinois state tax forms 2011 The deduction for a penalty on an early withdrawal of your child's savings. Illinois state tax forms 2011 Itemized deductions (such as your child's investment expenses or charitable contributions). Illinois state tax forms 2011 Figure 1. Illinois state tax forms 2011 Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. Illinois state tax forms 2011 Figure 1. Illinois state tax forms 2011 Can You Include Your Child's Income On Your Tax Return? Deductible investment interest. Illinois state tax forms 2011   If you use Form 8814, your child's unearned income is considered your unearned income. Illinois state tax forms 2011 To figure the limit on your deductible investment interest, add the child's unearned income to yours. Illinois state tax forms 2011 However, if your child received qualified dividends, capital gain distributions, or Alaska Permanent Fund dividends, see chapter 3 of Publication 550 for information about how to figure the limit. Illinois state tax forms 2011 Alternative minimum tax. Illinois state tax forms 2011    If your child received tax-exempt interest (or exempt-interest dividends paid by a regulated investment company) from certain private activity bonds, you must determine if that interest is a tax preference item for alternative minimum tax (AMT) purposes. Illinois state tax forms 2011 If it is, you must include it with your own tax preference items when figuring your AMT. Illinois state tax forms 2011 See Form 6251, Alternative Minimum Tax—Individuals, and its instructions for details. Illinois state tax forms 2011 Reduced deductions or credits. Illinois state tax forms 2011   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return, including the following. Illinois state tax forms 2011 Deduction for contributions to a traditional individual retirement arrangement (IRA). Illinois state tax forms 2011 Deduction for student loan interest. Illinois state tax forms 2011 Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. Illinois state tax forms 2011 Credit for child and dependent care expenses. Illinois state tax forms 2011 Child tax credit. Illinois state tax forms 2011 Education tax credits. Illinois state tax forms 2011 Earned income credit. Illinois state tax forms 2011 Penalty for underpayment of estimated tax. Illinois state tax forms 2011   If you make this election for 2013 and did not have enough tax withheld or pay enough estimated tax to cover the tax you owe, you may be subject to a penalty. Illinois state tax forms 2011 If you plan to make this election for 2014, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. Illinois state tax forms 2011 Get Publication 505 for more information. Illinois state tax forms 2011 Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. Illinois state tax forms 2011 Only the amount over $2,000 is added to your income. Illinois state tax forms 2011 The amount over $2,000 is shown on Form 8814, line 6. Illinois state tax forms 2011 Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. Illinois state tax forms 2011 Include the amount from Form 8814, line 12, on Form 1040 or Form 1040NR, line 21. Illinois state tax forms 2011 If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040 or Form 1040NR, line 21. Illinois state tax forms 2011 On the dotted line next to line 21, enter “Form 8814” and the total of the Form 8814, line 12 amounts. Illinois state tax forms 2011 Note. Illinois state tax forms 2011 The tax on the first $2,000 is figured on Form 8814, Part II. Illinois state tax forms 2011 See Figuring Additional Tax , later. Illinois state tax forms 2011 Qualified dividends. Illinois state tax forms 2011   Enter on Form 8814, line 2a, any ordinary dividends your child received. Illinois state tax forms 2011 This amount may include qualified dividends. Illinois state tax forms 2011 Qualified dividends are those dividends reported on Form 1040, line 9b, or Form 1040NR, line 10b, and are eligible for lower tax rates that apply to a net capital gain. Illinois state tax forms 2011 For detailed information about qualified dividends, see Publication 550. Illinois state tax forms 2011   If your child received qualified dividends, the amount of these dividends that is added to your income must be reported on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Illinois state tax forms 2011 You do not include these dividends on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Illinois state tax forms 2011   Enter the child's qualified dividends on Form 8814, line 2b. Illinois state tax forms 2011 But do not include this amount on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Illinois state tax forms 2011 Instead, include the amount from Form 8814, line 9, on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Illinois state tax forms 2011 (The amount on Form 8814, line 9, may be less than the amount on Form 8814, line 2b, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. Illinois state tax forms 2011 ) Capital gain distributions. Illinois state tax forms 2011   Enter on Form 8814, line 3, any capital gain distributions your child received. Illinois state tax forms 2011 The amount of these distributions that is added to your income must be reported on Schedule D (Form 1040), line 13, or, if you are not required to file Schedule D, on Form 1040, line 13, or Form 1040NR, line 14. Illinois state tax forms 2011 You do not include it on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Illinois state tax forms 2011   Include the amount from Form 8814, line 10, on Schedule D, line 13; Form 1040, line 13; or Form 1040NR, line 14, whichever applies. Illinois state tax forms 2011 (The amount on Form 8814, line 10, may be less than the amount on Form 8814, line 3, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. Illinois state tax forms 2011 ) Collectibles (28% rate) gain. Illinois state tax forms 2011    If any of the child's capital gain distributions are reported on Form 1099-DIV as collectibles (28% rate) gain, you must determine how much to also include on line 4 of the 28% Rate Gain Worksheet, in the instructions for Schedule D, line 18. Illinois state tax forms 2011 Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Illinois state tax forms 2011 The numerator is the part of the child's total capital gain distribution that is collectibles (28% rate) gain. Illinois state tax forms 2011 The denominator is the child's total capital gain distribution. Illinois state tax forms 2011 Enter the result on line 4 of the 28% Rate Gain Worksheet. Illinois state tax forms 2011 Unrecaptured section 1250 gain. Illinois state tax forms 2011   If any of the child's capital gain distributions are reported on Form 1099-DIV as unrecaptured section 1250 gain, you must determine how much to include on line 11 of the Unrecaptured Section 1250 Gain Worksheet in the instructions for Schedule D, line 19. Illinois state tax forms 2011 Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Illinois state tax forms 2011 The numerator is the part of the child's total capital gain distribution that is unrecaptured section 1250 gain. Illinois state tax forms 2011 The denominator is the child's total capital gain distribution. Illinois state tax forms 2011 Enter the result on the Unrecaptured Section 1250 Gain Worksheet, line 11. Illinois state tax forms 2011 Section 1202 gain. Illinois state tax forms 2011   If any of the child's capital gain distributions are reported as section 1202 gain (gain on qualified small business stock) on Form 1099-DIV, part or all of that gain may be eligible for the section 1202 exclusion. Illinois state tax forms 2011 (For information about the exclusion, see chapter 4 of Publication 550. Illinois state tax forms 2011 ) To figure that part, multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Illinois state tax forms 2011 The numerator is the part of the child's total capital gain distribution that is section 1202 gain. Illinois state tax forms 2011 The denominator is the child's total capital gain distribution. Illinois state tax forms 2011 Your section 1202 exclusion is generally 50% of the result, but may be subject to a limit. Illinois state tax forms 2011 In some cases, the exclusion is more than 50%. Illinois state tax forms 2011 See the instructions for Schedule D for details and information on how to report the exclusion amount. Illinois state tax forms 2011 Example. Illinois state tax forms 2011 Fred is 6 years old. Illinois state tax forms 2011 In 2013, he received dividend income of $2,100, which included $1,575 of ordinary dividends and a $525 capital gain distribution from a mutual fund. Illinois state tax forms 2011 (None of the distributions were reported on Form 1099-DIV as unrecaptured section 1250 gain, section 1202 gain, or collectibles (28% rate) gain. Illinois state tax forms 2011 ) All of the ordinary dividends are qualified dividends. Illinois state tax forms 2011 He has no other income and is not subject to backup withholding. Illinois state tax forms 2011 No estimated tax payments were made under his name and social security number. Illinois state tax forms 2011 Fred's parents elect to include Fred's income on their tax return instead of filing a return for him. Illinois state tax forms 2011 They figure the amount to report on Form 1040, lines 9a and 9b, the amount to report on their Schedule D, line 13, and the amount to report on Form 1040, line 21, as follows. Illinois state tax forms 2011 They leave lines 1a and 1b of Form 8814 blank because Fred does not have any interest income. Illinois state tax forms 2011 They enter his ordinary dividends of $1,575 on lines 2a and 2b because all of Fred's ordinary dividends are qualified dividends. Illinois state tax forms 2011 They enter the amount of Fred's capital gain distributions, $525, on line 3. Illinois state tax forms 2011 Next, they add the amounts on lines 1a, 2a, and 3 and enter the result, $2,100, on line 4. Illinois state tax forms 2011 They subtract the base amount on line 5, $2,000, from the amount on line 4, $2,100, and enter the result, $100, on line 6. Illinois state tax forms 2011 This is the total amount from Form 8814 to be reported on their return. Illinois state tax forms 2011 Next, they figure how much of this amount is qualified dividends and how much is capital gain distributions. Illinois state tax forms 2011 They divide the amount on line 2b, $1,575, by the amount on line 4, $2,100. Illinois state tax forms 2011 They enter the result, . Illinois state tax forms 2011 75, on line 7. Illinois state tax forms 2011 They divide the amount on line 3, $525, by the amount on line 4, $2,100. Illinois state tax forms 2011 They enter the result, . Illinois state tax forms 2011 25, on line 8. Illinois state tax forms 2011 They multiply the amount on line 6, $100, by the decimal on line 7, . Illinois state tax forms 2011 75, and enter the result, $75, on line 9. Illinois state tax forms 2011 They multiply the amount on line 6, $100, by the decimal on line 8, . Illinois state tax forms 2011 25, and enter the result, $25, on line 10. Illinois state tax forms 2011 They include the amount from line 9, $75, on lines 9a and 9b of their Form 1040 and enter “Form 8814 – $75” on the dotted lines next to lines 9a and 9b. Illinois state tax forms 2011 They include the amount from line 10, $25, on line 13 of their Schedule D (Form 1040) and enter “Form 8814 – $25” on the dotted line next to Schedule D, line 13. Illinois state tax forms 2011 They enter $100 ($75 + $25) on line 11 and -0- ($100 – $100) on line 12. Illinois state tax forms 2011 Because the amount on line 12 is -0-, they do not include any amount from Form 8814 on their Form 1040, line 21. Illinois state tax forms 2011 Figuring Additional Tax Use Form 8814, Part II, to figure the tax on the $2,000 of your child's interest and dividends that you do not include in your income. Illinois state tax forms 2011 This tax is added to the tax figured on your income. Illinois state tax forms 2011 This additional tax is the smaller of: 10% x (your child's gross income − $1,000), or $100. Illinois state tax forms 2011 Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44, or Form 1040NR, line 42. Illinois state tax forms 2011 Check box a on Form 1040, line 44, or Form 1040NR, line 42. Illinois state tax forms 2011 Tax for Certain Children Who Have Unearned Income If a child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Illinois state tax forms 2011 If the parent does not or cannot choose to include the child's income on the parent's return, use Form 8615 to figure the child's tax. Illinois state tax forms 2011 Attach the completed form to the child's Form 1040, Form 1040A, or Form 1040NR. Illinois state tax forms 2011 When Form 8615 must be filed. Illinois state tax forms 2011   Form 8615 must be filed for a child if all of the following statements are true. Illinois state tax forms 2011 The child's unearned income was more than $2,000. Illinois state tax forms 2011 The child is required to file a return for 2013. Illinois state tax forms 2011 The child either: Was under age 18 at the end of the year, Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or Was over age 18 and under age 24 at the end of the year, was a full-time student, and did not have earned income that was more than half of his or her support. Illinois state tax forms 2011 At least one of the child's parents was alive at the end of 2013. Illinois state tax forms 2011 The child does not file a joint return for 2013. Illinois state tax forms 2011 These conditions are also shown in Figure 2. Illinois state tax forms 2011 Certain January 1 birthdays. Illinois state tax forms 2011   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. Illinois state tax forms 2011 IF a child was born on. Illinois state tax forms 2011 . Illinois state tax forms 2011 . Illinois state tax forms 2011 THEN, at the end of 2013, the child is considered to be. Illinois state tax forms 2011 . Illinois state tax forms 2011 . Illinois state tax forms 2011 January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. Illinois state tax forms 2011 The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. Illinois state tax forms 2011  **This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. Illinois state tax forms 2011  ***Do not use Form 8615 for this child. Illinois state tax forms 2011 Figure 2. Illinois state tax forms 2011 Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. Illinois state tax forms 2011 Figure 2. Illinois state tax forms 2011 Do You Have To Use Form 8615 To Figure Your Child's Tax? Providing Parental Information (Form 8615, Lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. Illinois state tax forms 2011 (If the parents filed a joint return, enter the name and social security number listed first on the joint return. Illinois state tax forms 2011 ) On line C, check the box for the parent's filing status. Illinois state tax forms 2011 See Which Parent's Return To Use, earlier, for information on which parent's return information must be used on Form 8615. Illinois state tax forms 2011 Parent with different tax year. Illinois state tax forms 2011   If the parent and the child do not have the same tax year, complete Form 8615 using the information on the parent's return for the tax year that ends in the child's tax year. Illinois state tax forms 2011 Example. Illinois state tax forms 2011 Kimberly must use her mother's tax and taxable income to complete her Form 8615 for calendar year 2013 (January 1 – December 31). Illinois state tax forms 2011 Kimberly's mother files her tax return on a fiscal year basis (July 1 – June 30). Illinois state tax forms 2011 Kimberly must use the information on her mother's return for the tax year ending June 30, 2013, to complete her 2013 Form 8615. Illinois state tax forms 2011 Parent's return information not known timely. Illinois state tax forms 2011   If the information needed from the parent's return is not known by the time the child's return is due (usually April 15), you can file the return using estimates. Illinois state tax forms 2011   You can use any reasonable estimate. Illinois state tax forms 2011 This includes using information from last year's return. Illinois state tax forms 2011 If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. Illinois state tax forms 2011   When you get the correct information, file an amended return on Form 1040X, Amended U. Illinois state tax forms 2011 S. Illinois state tax forms 2011 Individual Income Tax Return. Illinois state tax forms 2011 Extension of time to file. Illinois state tax forms 2011   Instead of using estimates, you can get an automatic 6-month extension of time to file if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Illinois state tax forms 2011 S. Illinois state tax forms 2011 Individual Income Tax Return. Illinois state tax forms 2011 See the instructions for Form 4868 for details. Illinois state tax forms 2011    An extension of time to file is not an extension of time to pay. Illinois state tax forms 2011 You must make an accurate estimate of the tax for 2013. Illinois state tax forms 2011 If you do not pay the full amount due by the regular due date, the child will owe interest and may also be charged penalties. Illinois state tax forms 2011 See Form 4868 and its instructions. Illinois state tax forms 2011 Parent's return information not available. Illinois state tax forms 2011   If a child cannot get the required information about his or her parent's tax return, the child (or the child's legal representative) can request the necessary information from the Internal Revenue Service (IRS). Illinois state tax forms 2011 How to request. Illinois state tax forms 2011   After the end of the tax year, send a signed, written request for the information to the Internal Revenue Service Center where the parent's return will be filed. Illinois state tax forms 2011 (The IRS cannot process a request received before the end of the tax year. Illinois state tax forms 2011 )    You should also consider getting an extension of time to file the child's return, because there may be a delay in getting the requested information. Illinois state tax forms 2011   The request must contain all of the following. Illinois state tax forms 2011 A statement that you are making the request to comply with section 1(g) of the Internal Revenue Code and that you have tried to get the information from the parent. Illinois state tax forms 2011 Proof of the child's age (for example, a copy of the child's birth certificate). Illinois state tax forms 2011 Evidence the child has more than $2,000 of unearned income (for example, a copy of the child's prior year tax return or copies of Forms 1099 for the current year). Illinois state tax forms 2011 The name, address, social security number (if known), and filing status (if known) of the parent whose information is to be shown on Form 8615. Illinois state tax forms 2011    A child's legal representative making the request should include a copy of his or her Power of Attorney, such as Form 2848, or proof of legal guardianship. Illinois state tax forms 2011 Step 1. Illinois state tax forms 2011 Figuring the Child's Net Unearned Income (Form 8615, Part I) The first step in figuring a child's tax using Form 8615 is to figure the child's net unearned income. Illinois state tax forms 2011 To do that, use Form 8615, Part I. Illinois state tax forms 2011 Line 1 (Unearned Income) If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. Illinois state tax forms 2011 Adjusted gross income is shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Illinois state tax forms 2011 Form 1040EZ and Form 1040NR-EZ cannot be used if Form 8615 must be filed. Illinois state tax forms 2011 If the child had earned income, figure the amount to enter on Form 8615, line 1, by using the worksheet in the instructions for the form. Illinois state tax forms 2011 However, use the following worksheet if: the child has excluded any foreign earned income, deducted a loss from self-employment, or has a net operating loss from another year. Illinois state tax forms 2011 Alternate Worksheet for Form 8615, Line 1 A. Illinois state tax forms 2011 Enter the amount from the child's Form 1040, line 22, or Form 1040NR, line 23   B. Illinois state tax forms 2011 Enter the total of any net loss  from self-employment, any net operating loss deduction, any foreign earned income exclusion, and any foreign housing exclusion from the child's Form 1040 or Form 1040NR. Illinois state tax forms 2011 Enter this total as a positive number (greater than zero)   C. Illinois state tax forms 2011 Add line A and line B and  enter the total   D. Illinois state tax forms 2011 Enter the child's earned income plus any amount from the child's Form 1040, line 30, or the child's Form 1040NR, line 30     Generally, the child's earned income is the total of the amounts reported on Form 1040, lines 7, 12, and 18 (if line 12 or 18 is a loss, use zero) or Form 1040NR, lines 8, 13, and 19 (if line 13 or 19 is a loss, use zero)   E. Illinois state tax forms 2011 Subtract line D from line C. Illinois state tax forms 2011 Enter the result here and on Form 8615, line 1   Unearned income defined. Illinois state tax forms 2011   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed. Illinois state tax forms 2011 It includes taxable interest, dividends, capital gains (including capital gain distributions), the taxable part of social security and pension payments, certain distributions from trusts, and unemployment compensation. Illinois state tax forms 2011 Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages). Illinois state tax forms 2011 Nontaxable income. Illinois state tax forms 2011   For this purpose, unearned income includes only amounts the child must include in gross income. Illinois state tax forms 2011 Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. Illinois state tax forms 2011 Capital loss. Illinois state tax forms 2011   A child's capital losses are taken into account in figuring the child's unearned income. Illinois state tax forms 2011 Capital losses are first applied against capital gains. Illinois state tax forms 2011 If the capital losses are more than the capital gains, the difference (up to $3,000) is subtracted from the child's interest, dividends, and other unearned income. Illinois state tax forms 2011 Any difference over $3,000 is carried to the next year. Illinois state tax forms 2011 Income from property received as a gift. Illinois state tax forms 2011   A child's unearned income includes all income produced by property belonging to the child. Illinois state tax forms 2011 This is true even if the property was transferred to the child, regardless of when the property was transferred or purchased or who transferred it. Illinois state tax forms 2011   A child's unearned income includes income produced by property given as a gift to the child. Illinois state tax forms 2011 This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. Illinois state tax forms 2011 Example. Illinois state tax forms 2011 Amanda Black, age 13, received the following income. Illinois state tax forms 2011 Dividends—$800 Wages—$2,100 Taxable interest—$1,200 Tax-exempt interest—$100 Capital gains—$300 Capital losses—($200) The dividends were qualified dividends on stock given to her by her grandparents. Illinois state tax forms 2011 Amanda's unearned income is $2,100. Illinois state tax forms 2011 This is the total of the dividends ($800), taxable interest ($1,200), and capital gains reduced by capital losses ($300 − $200 = $100). Illinois state tax forms 2011 Her wages are earned (not unearned) income because they are received for work actually performed. Illinois state tax forms 2011 Her tax-exempt interest is not included because it is nontaxable. Illinois state tax forms 2011 Trust income. Illinois state tax forms 2011   If a child is the beneficiary of a trust, distributions of taxable interest, dividends, capital gains, and other unearned income from the trust are unearned income to the child. Illinois state tax forms 2011   However, taxable distributions from a qualified disability trust are considered earned income for the purposes of completing Form 8615. Illinois state tax forms 2011 See the Form 8615 instructions for details. Illinois state tax forms 2011 Adjustment to income. Illinois state tax forms 2011   In figuring the amount to enter on line 1, the child's unearned income is reduced by any penalty on the early withdrawal of savings. Illinois state tax forms 2011 Line 2 (Deductions) If the child does not itemize deductions on Schedule A (Form 1040 or Form 1040NR), enter $2,000 on line 2. Illinois state tax forms 2011 If the child itemizes deductions, enter on line 2 the larger of: $1,000 plus the portion of the child's itemized deductions on Schedule A (Form 1040), line 29 (or Schedule A (Form 1040NR), line 15), that are directly connected with the production of the unearned income entered on line 1, or $2,000. Illinois state tax forms 2011 Directly connected. Illinois state tax forms 2011   Itemized deductions are directly connected with the production of unearned income if they are for expenses paid to produce or collect taxable income or to manage, conserve, or maintain property held for producing income. Illinois state tax forms 2011 These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. Illinois state tax forms 2011    These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). Illinois state tax forms 2011 Only the amount greater than 2% of the child's adjusted gross income can be deducted. Illinois state tax forms 2011 See Publication 529, Miscellaneous Deductions, for more information. Illinois state tax forms 2011 Example 1. Illinois state tax forms 2011 Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with his unearned income. Illinois state tax forms 2011 His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. Illinois state tax forms 2011 Roger enters $2,000 on line 2 because that is more than the total of $1,000 plus his directly-connected itemized deductions of $300. Illinois state tax forms 2011 Example 2. Illinois state tax forms 2011 Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. Illinois state tax forms 2011 She has no other income. Illinois state tax forms 2011 She has itemized deductions of $1,050 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with the production of her unearned income. Illinois state tax forms 2011 Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). Illinois state tax forms 2011 The amount on line 2 is $2,050. Illinois state tax forms 2011 This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. Illinois state tax forms 2011 Line 3 Subtract line 2 from line 1 and enter the result on this line. Illinois state tax forms 2011 If zero or less, do not complete the rest of the form. Illinois state tax forms 2011 However, you must still attach Form 8615 to the child's tax return. Illinois state tax forms 2011 Figure the tax on the child's taxable income in the normal manner. Illinois state tax forms 2011 Line 4 (Child's Taxable Income) Enter on line 4 the child's taxable income from Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. Illinois state tax forms 2011 Child files Form 2555 or 2555-EZ. Illinois state tax forms 2011   If the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) is used to figure the child's tax. Illinois state tax forms 2011 Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the child's taxable income on Form 8615, line 4. Illinois state tax forms 2011 Line 5 (Net Unearned Income) A child's net unearned income cannot be more than his or her taxable income. Illinois state tax forms 2011 Enter on Form 8615, line 5, the smaller of line 3 or line 4. Illinois state tax forms 2011 This is the child's net unearned income. Illinois state tax forms 2011 If zero or less, do not complete the rest of the form. Illinois state tax forms 2011 However, you must still attach Form 8615 to the child's tax return. Illinois state tax forms 2011 Figure the tax on the child's taxable income in the normal manner. Illinois state tax forms 2011 Step 2. Illinois state tax forms 2011 Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's tax rate. Illinois state tax forms 2011 The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it. Illinois state tax forms 2011 When figuring the tentative tax at the parent's tax rate on Form 8615, do not refigure any of the exclusions, deductions, or credits on the parent's return because of the child's net unearned income. Illinois state tax forms 2011 For example, do not refigure the medical expense deduction. Illinois state tax forms 2011 Figure the tentative tax on Form 8615, lines 6 through 13. Illinois state tax forms 2011 Line 6 (Parent's Taxable Income) Enter on line 6 the amount from the parent's Form 1040, line 43; Form 1040A, line 27; Form 1040EZ, line 6; Form 1040NR, line 41; or Form 1040NR-EZ, line 14. Illinois state tax forms 2011 If the parent's taxable income is zero or less, enter zero on line 6. Illinois state tax forms 2011 Parent files Form 2555 or 2555-EZ. Illinois state tax forms 2011   If the parent files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet in the Form 1040 instructions is used to figure the parent's tax. Illinois state tax forms 2011 Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the parent's taxable income, on line 6 of Form 8615. Illinois state tax forms 2011 Line 7 (Net Unearned Income of Other Children) If the tax return information of the parent is also used on any other child's Form 8615, enter on line 7 the total of the amounts from line 5 of all the other children's Forms 8615. Illinois state tax forms 2011 Do not include the amount from line 5 of the Form 8615 being completed. Illinois state tax forms 2011 (The term “other child” means any other child whose Form 8615 uses the tax information of the parent identified on Lines A and B of Form 8615. Illinois state tax forms 2011 ) Example. Illinois state tax forms 2011 Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. Illinois state tax forms 2011 The children's net unearned income amounts on line 5 of their Forms 8615 are: Sharon—$800 Jerry—$600 Mike—$1,000 Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 8615. Illinois state tax forms 2011 Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). Illinois state tax forms 2011 Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). Illinois state tax forms 2011 Other children's information not available. Illinois state tax forms 2011   If the net unearned income of the other children is not available when the return is due, either file the return using estimates or get an extension of time to file. Illinois state tax forms 2011 Estimates and extensions are discussed earlier under Providing Parental Information (Form 8615, Lines A–C) . Illinois state tax forms 2011 Line 8 (Parent's Taxable Income Plus Children's Net Unearned Income) Enter on this line the total of lines 5, 6, and 7. Illinois state tax forms 2011 You must determine the amount of net capital gain and qualified dividends included on this line before completing Form 8615, line 9. Illinois state tax forms 2011 Net capital gain. Illinois state tax forms 2011   Net capital gain is the smaller of the gain, if any, on Schedule D (Form 1040), line 15, or the gain, if any, on Schedule D, line 16. Illinois state tax forms 2011 If Schedule D is not required, it is the amount on Form 1040, line 13; Form 1040A, line 10; or Form 1040NR, line 14. Illinois state tax forms 2011 Qualified dividends. Illinois state tax forms 2011   Qualified dividends are those dividends reported on line 9b of Form 1040 or Form 1040A, or line 10b of Form 1040NR. Illinois state tax forms 2011 Net capital gain and qualified dividends on line 8. Illinois state tax forms 2011   If neither the child, nor the parent, nor any other child has net capital gain, the net capital gain on line 8 is zero. Illinois state tax forms 2011   If neither the child, nor the parent, nor any other child has qualified dividends, the amount of qualified dividends on line 8 is zero. Illinois state tax forms 2011   If the child, parent, or any other child has net capital gain, figure the amount of net capital gain included on line 8 by adding together the net capital gain amounts included on lines 5, 6, and 7 of Form 8615. Illinois state tax forms 2011   If the child, parent, or any other child has qualified dividends, figure the amount of qualified dividends included on line 8 by adding together the qualified dividend amounts included on lines 5, 6, and 7. Illinois state tax forms 2011   Use the instructions for Form 8615, line 8, including the appropriate Line 5 Worksheet, to find these amounts. Illinois state tax forms 2011 See the instructions for Form 8615 for more details. Illinois state tax forms 2011 Note. Illinois state tax forms 2011 The amount of any net capital gain or qualified dividends is not separately reported on line 8. Illinois state tax forms 2011 It is  needed, however, when figuring the tax on line 9. Illinois state tax forms 2011 Line 9 (Tax on Parent's Taxable Income Plus Children's Net Unearned Income) Figure the tax on the amount on line 8 using the Tax Table, the Tax Computation Worksheet, the Qualified Dividends and Capital Gain Tax Worksheet (in the Form 1040, 1040A, or 1040NR instructions), the Schedule D Tax Worksheet (in the Schedule D instructions), or Schedule J (Form 1040), as follows. Illinois state tax forms 2011 If line 8 does not include any net capital gain or qualified dividends, use the Tax Table or Tax Computation Worksheet to figure this tax. Illinois state tax forms 2011 But if Schedule J, Income Averaging for Farmers and Fishermen, is used to figure the tax on the parent's return, use it to figure this tax. Illinois state tax forms 2011 If line 8 includes any net capital gain or qualified dividends, use the Qualified Dividends and Capital Gain Tax Worksheet to figure this tax. Illinois state tax forms 2011 For details, see the instructions for Form 8615, line 9. Illinois state tax forms 2011 However, if the child, parent, or any other child has 28% rate gain or unrecaptured section 1250 gain, use the Schedule D Tax Worksheet. Illinois state tax forms 2011 But if Schedule J is used to figure the tax on the parent's return, use it to figure this tax. Illinois state tax forms 2011 Child files Form 2555 or 2555-EZ. Illinois state tax forms 2011   If line 8 includes any net capital gain or qualified dividends and the child, or any other child filing Form 8615, also files Form 2555 or 2555-EZ, use Using the Schedule D Tax Worksheet for line 9 tax, next, to figure the line 9 tax. Illinois state tax forms 2011 Using the Schedule D Tax Worksheet for line 9 tax. Illinois state tax forms 2011    Use the Schedule D Tax Worksheet (in the Schedule D instructions) to figure the line 9 tax on Form 8615 if the child, parent, or any other child has unrecaptured section 1250 gain or 28% rate gain. Illinois state tax forms 2011 If you must use the Schedule D Tax Worksheet, first complete any Schedule D and any actual Schedule D Tax Worksheet required for the child, parent, or any other child. Illinois state tax forms 2011 Then figure the line 9 tax using another Schedule D Tax Worksheet. Illinois state tax forms 2011 (Do not attach this Schedule D Tax Worksheet to the child's return. Illinois state tax forms 2011 )   Complete this Schedule D Tax Worksheet as follows. Illinois state tax forms 2011 On line 1, enter the amount from Form 8615, line 8. Illinois state tax forms 2011 On line 2, enter the qualified dividends included on Form 8615, line 8. Illinois state tax forms 2011 (See the earlier discussion for line 8. Illinois state tax forms 2011 ) On line 3, enter the total of the amounts, if any, on line 4g of all Forms 4952 filed by the child, parent, or any other child. Illinois state tax forms 2011 On line 4, enter the total of the amounts, if any, on line 4e of all Forms 4952 filed by the child, parent, or any other child. Illinois state tax forms 2011 If applicable, include instead the smaller amount entered on the dotted line next to line 4e. Illinois state tax forms 2011 On lines 5 and 6, follow the worksheet instructions. Illinois state tax forms 2011 On line 7, enter the net capital gain included on Form 8615, line 8. Illinois state tax forms 2011 (See the earlier discussion for line 8. Illinois state tax forms 2011 ) On lines 8 through 10, follow the worksheet instructions. Illinois state tax forms 2011 On line 11, enter zero if neither the child, nor the parent, nor any other child has unrecaptured section 1250 gain (Schedule D, line 19) or 28% rate gain (Schedule D, line 18). Illinois state tax forms 2011 Otherwise, enter the amount of unrecaptured section 1250 gain and 28% rate gain included in the net capital gain on line 8 of Form 8615. Illinois state tax forms 2011 Figure these amounts as explained later under Figuring unrecaptured section 1250 gain (line 11) and Figuring 28% rate gain (line 11). Illinois state tax forms 2011 If the Foreign Earned Income Tax Worksheet was used to figure the parent's tax or the tax of any child, go to step 10 below. Illinois state tax forms 2011 Otherwise, skip steps 10, 11, and 12 below, and go to step 13. Illinois state tax forms 2011 Determine whether there is a line 8 capital gain excess as follows. Illinois state tax forms 2011 Add the amounts on line 2 of all Foreign Earned Income Tax Worksheets completed by the parent or any child for whom Form 8615 is filed. Illinois state tax forms 2011 (But for each child do not add more than the excess, if any, of the amount on line 5 of the child's Form 8615 over the child's taxable income on Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. Illinois state tax forms 2011 ) Subtract (a) from the amount on line 1 of this Schedule D Tax Worksheet. Illinois state tax forms 2011 Subtract (b) from the amount on line 10 of this Schedule D Tax Worksheet. Illinois state tax forms 2011 If the result is more than zero, that amount is the line 8 capital gain excess. Illinois state tax forms 2011 If the result is zero or less, there is no line 8 capital gain excess. Illinois state tax forms 2011 If there is no line 8 capital gain excess, skip step 12 below and go to step 13. Illinois state tax forms 2011 If there is a line 8 capital gain excess, complete a second Schedule D Tax Worksheet as instructed above and in step 13, but in its entirety and with the following additional modifications. Illinois state tax forms 2011 (These modifications are to be made only for purposes of filling out this additional Schedule D Tax Worksheet. Illinois state tax forms 2011 ) Reduce the amount you would otherwise enter on line 9 (but not below zero) by the line 8 capital gain excess. Illinois state tax forms 2011 Reduce the amount you would otherwise enter on line 6 (but not below zero) by any of the line 8 capital gain excess not used in (a) above. Illinois state tax forms 2011 If the child, parent, or any other child has 28% rate gain, reduce the amount you would otherwise enter on line 8 of Worksheet 1 for Line 11 of the Schedule D Tax Worksheet – 28% Rate Gain (Line 9 Tax), shown later, (but not below zero) by the line 8 capital gain excess, and refigure the amount on line 11 of this Schedule D Tax Worksheet. Illinois state tax forms 2011 If the child, parent, or any other child has unrecaptured section 1250 gain, reduce the amount you would otherwise enter on line 8 of Worksheet 2 for Line 11 of the Schedule D Tax Worksheet – Unrecaptured Section 1250 Gain (Line 9 Tax) (but not below zero) by the line 8 capital gain excess not used in 12(c), and refigure the amount on line 11 of this Schedule D Tax Worksheet. Illinois state tax forms 2011 Complete lines 12 through 45 following the worksheet instructions. Illinois state tax forms 2011 Use the parent's filing status to complete lines 15, 42, and 44. Illinois state tax forms 2011 Enter the amount from line 45 of this Schedule D Tax Worksheet on Form 8615, line 9, and check the box on that line