Illinois Form IL-1040 Schedule NR – Nonresident and Part-Year Resident Tax Calculation (2026)
Last reviewed: 2025-11-03
Use the Illinois Tax Form Calculator Form IL-1040 Schedule NR: Illinois Nonresident and Part-Year Resident as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Illinois state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Form IL-1040 Schedule NR determines how much of your total income is taxable in Illinois if you were a nonresident or part-year resident. The form calculates the proportion of income earned within the state and applies the flat rate of 4.95%, ensuring that you pay Illinois tax only on your Illinois-source earnings.
Who Must File Schedule NR
You must file Schedule NR if you lived outside Illinois for part or all of 2026 and earned wages, business income, or other taxable income from Illinois sources. Nonresidents also use Schedule NR to compute their credit for taxes paid to other states via Schedule CR. If you were a full-year resident, do not include this schedule; instead, complete Form IL-1040 alone.
The calculation starts by entering your federal adjusted gross income and any additions from Schedule M. You then determine your Illinois-source income by combining income earned while resident and any nonresident Illinois earnings. The apportionment ratio (Line 9) divides Illinois income by total income to find the portion subject to Illinois tax. This ratio multiplies your total Illinois base tax (Line 10) to determine the exact liability for Illinois sources only.
Schedule NR ensures fairness by exempting income earned while living outside Illinois. It also enables credits for taxes paid to other states when the same income is taxed elsewhere. Remember that the credit cannot exceed the Illinois tax otherwise due on that income.
| Step 1 – Residency Status | ||
| 1 | Enter residency period (dates you lived in Illinois during 2026) | |
| 2 | Check this box if you were a nonresident for the entire year | |
| Step 2 – Income Allocation | ||
| 3 | Federal adjusted gross income from Form IL-1040 Line 1 | |
| 4 | Additions from Illinois Schedule M Line 11 (if filed) | |
| 5 | Total income from all sources (Lines 3 + 4) | |
| 6 | Income earned while a resident of Illinois | |
| 7 | Illinois-source income while nonresident (attach Schedule CR if applicable) | |
| 8 | Total Illinois income (Lines 6 + 7) | |
| 9 | Apportionment ratio (Line 8 ÷ Line 5) | |
| Step 3 – Tax Computation | ||
| 10 | Tax from Form IL-1040 Line 12 (before credits) | |
| 11 | Multiply Line 10 by Line 9 (apportionment ratio) | |
| 12 | Credit for tax paid to other states (Attach Schedule CR) | |
| 13 | Tax after credit (Line 11 − Line 12; not less than zero) | |
| 14 | Recapture taxes or surcharges (if applicable) | |
| 15 | Total Illinois tax due (Line 13 + Line 14) | |
| Step 4 – Payments and Balance | ||
| 16 | Illinois income tax withheld | |
| 17 | Estimated payments or prior-year overpayment credit | |
| 18 | Total payments (Lines 16 + 17) | |
| 19 | If Line 18 > Line 15, overpayment (Line 18 − Line 15) | |
| 20 | If Line 15 > Line 18, balance due (Line 15 − Line 18) | |
Example Scenario
Example: John worked in Chicago from January to June 2026, then moved permanently to Indiana. His total income for the year was $80,000, with $35,000 earned in Illinois. John’s apportionment ratio is $35,000 ÷ $80,000 = 0.4375. The Illinois tax at 4.95 % is applied only to 43.75 % of his total liability, ensuring he pays Illinois tax only on his Illinois earnings.
Common Errors and Tips
- Always include supporting state wage statements (W-2 box 15) and out-of-state returns when claiming credit for taxes paid elsewhere.
- Do not prorate exemptions—exemption phase-outs occur at the state level, not on Schedule NR.
- Ensure Line 11 (apportioned tax) feeds accurately into Form IL-1040 Line 12.
- Attach Schedule M and Schedule CR if you have income adjustments or out-of-state credits.
Last reviewed: 2025-11-03: If you believe this form requires an update, please contact us.
Related Resources
For additional guidance, consult:
- Schedule CR – Credit for Tax Paid to Other States
- Schedule M – Additions and Subtractions
- Form IL-1040 – Individual Income Tax Return
Official references: Schedule NR Instructions (2026) from the Illinois Department of Revenue.
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Frequently Asked Questions
Do I need to file IL-1040-X if the IRS changes my income?
Yes. If the IRS adjusts your federal return and it affects Illinois tax, you must file IL-1040-X within 120 days of receiving the federal notice.
Are donations made through Schedule G-L tax-deductible?
Yes. Your Schedule G-L donations are eligible for a federal charitable deduction if you itemize on your federal Form 1040 Schedule A. Keep a copy of the filed schedule and any Lottery confirmation of your gift. The contribution will increase your Illinois payment or reduce your refund, but may lower your federal taxable income in the following year.
Changing jobs mid-year in IL
Update income/withholding and frequency; brackets are flat but credits/exemptions still matter.
Who must file Schedule FD?
You must file Schedule FD if you are a former Illinois resident who receives income (such as installment sale gains or deferred bonuses) sourced from Illinois that became taxable for federal purposes during 2026.
What documentation must accompany Schedule 1299-DA?
Attach copies of the other states’ filed tax returns, W-2s, or K-1s showing withholding and payments. Failure to attach proof can lead to denial of the credit. For convenience, you can track and upload copies directly through the MyTax Illinois portal.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.