Common questions about Illinois use tax for individual returns in Lacerte

Below, you'll find answers to frequently asked questions about Illinois use tax in Lacerte.

What's use tax?

Use tax is a type of sales tax you owe for buying items or services without paying for sales tax at the time of purchase.

Do you owe Illinois use tax?

You owe Illinois use tax if you buy an item or service:

• For use or consumption in Illinois;
• From an out-of-state retailer who doesn't charge Illinois sales tax (Or charges sales tax at a lower rate than Illinois);
• That you'd normally pay sales tax for if you bought that item or service from a vendor in Illinois.

To calculate Illinois use tax in Lacerte:

1. Go to Screen 54, Taxes.
2. Under the section Use Tax, select the box Compute use tax for this return.
   • Lacerte will calculate the use tax owed using tables or a worksheet provided in the Form IL-1040 instructions. Both the tables and worksheet are based on the federal adjusted gross income (AGI), or IL-1040, line 1.

Related topics:

• Illinois Informational Diagnostic: Use Tax Might be Needed (Ref. #15542)