Instructions for Illinois Corporate filers using TurboTax Business 2010 to file year-end 2011 return

Using the official Illinois Tax Increase Informational Bulletin as a guide, calculate your "blended" tax liability by multiplying your tax year 2010 income by .048 and your tax year 2011 income by .07.

(Your tax year 2010 income is earned up to and including December 31, 2010, whereas your tax year 2011 income is earned on or after January 1, 2011.)

Add the two figures together – this is the new "blended" tax liability that you will manually enter into TurboTax.

1. Open your corporate return in TurboTax and switch to Forms mode by choosing Forms from the View menu.
2. Open Form IL-1120 and go to page 3.
3. Right-click Line 45 (Income Tax) and choose Override from the menu.
4. Enter the blended tax liability you calculated. Your entry will be red, indicating an override.
5. Choose Step-by-Step from the View menu to exit Forms mode.

If your corporation has an NOL and the fiscal tax year ends after December 31, 2010, you can delete Schedule NLD.

However, deleting Schedule NLD will not preserve the NOL, which you may need in case the Illinois Department of Revenue reverses their decision in the future.

Instead, we recommend doing the following:

1. Open your corporate return in TurboTax and switch to Forms mode by choosing Forms from the View menu.
2. Open Illinois Schedule NLD.
3. Scroll down to Line 5 which calculates the NOL to be applied to the current year.
4. For Columns A, B, and C, choose Override from the menu, and enter a 0.
   • When finished, the total field on the right should also show a 0.
5. Choose Step-by-Step from the View menu to exit Forms mode.

This action does two things:

1. It stops a NOL from being applied to income on Form IL-1120; and
2. It preserves the NOL for possible future use.