Form IL-1120-ST

What Is the IL-1120-ST Form?

Primarily used in the state of Illinois, form IL-1120-ST is used to report the income, deductions and credits of an S corporation. In essence, it aids the state in determining the amount of income tax owed by the corporation for the tax period. 

Why you need form IL-1120-ST 

The Illinois Form IL 1120 ST is a key requirement for S corporations for two key reasons. Firstly, it allows corporations to report necessary income and expenses. Secondly, this form proves beneficial as it allows for the income to be reported and taxed at the shareholder level, not at the corporate level. 

How to Fill Out the Illinois Form IL 1120 ST

A comprehensive guide on how to fill out the form can be invaluable, especially for first-time filers. There are specific steps to follow:

1. Begin by navigating to the section labeled "Tax year beginning and ending (month day year)". Fill in the details accurately, providing the tax year's start and ending dates.
2. Next, you should move to the "Enter the amount you are paying" box. After calculations, put the correct figure for the amount you will pay.
3. Go to the line named "Identify your small business corporation". In this section, write down the true and complete name of your small business corporation.
4. Moving on to "Figure your ordinary income or loss", you need to calculate your business's earnings or losses throughout the tax year.
5. Once you've figured it out, input the details appropriately into the "Figure your unmodified base income or loss" section. Include the net amount of your income or loss.
6. The "Figure your income or loss" section is for your total taxable income or loss for the year. Fill this out.
7. In the "Figure your base income or loss" field, enter the net income or loss, ignoring any modifications.
8. Complete the "Figure your net income" field with your net income after subtracting any deductions.
9. Move on to "Figure the taxes, surcharges, pass-through withholding, and penalty you owe", filling in the tax amount after calculating it as per the applicable rates. Don't forget to include any surcharges or penalties.
10. The next field is "Figure your refund or balance due". If any amount is due for you to pay as tax or if you are eligible for a return, calculate it and fill it in here.
11. An essential part is the "Sign below" form field. The authorized officer must put their signature, date it, add the title, and provide their phone number.
12. Lastly, don’t forget the "Paid Preparer Use Only" section. This section should be completed if a tax professional filled out the form. Fill in the preparer’s name, signature, date, PTIN, firm’s name, address, FEIN, phone, and whether they are self-employed or associated with a company.

When should I use IL 1120 ST extension form?

The Il-1120-ST form is specifically used by small businesses in Illinois that operate as S corporations for federal tax purposes. The form is utilized to report income, gains, losses, deductions, credits, etc., and to calculate their liability for Illinois state taxes. Therefore, if you're running a small business that is considered an S corporation in Illinois, you should use this form to file your annual state income tax return.