Here is the Turbotax explanation on "Business expense recapture": Enter the amount of the expenses and deductions you claimed for this asset or activity for this year and the two previous years.
Learn more: Applies if you reported income from an activity or an asset as business income in previous years and reported this same income as nonbusiness income on this Schedule M or on your Schedule NR for 2022. If this is your case, you need to enter all deductions and expenses connected with this income for this year and for the two previous years back into your Illinois income.
The Business expense recapture on the IL state tax return is for nonresidents only. You didn't mention in your question that you were a nonresident, but if you are, this doesn't apply to you, leave it blank.
if you are a nonresident, if you are continuing the Etsy business, this wouldn't apply to you. Leave it blank. This is only if you had previous business income in prior years and now you decided that the same business activity is just a hobby (intentions are not to make a profit aka nonbusiness income).
The Business expense recapture on the IL state tax return is for nonresidents only. You didn't mention in your question that you were a nonresident, but if you are, this doesn't apply to you, leave it blank.
if you are a nonresident, if you are continuing the Etsy business, this wouldn't apply to you. Leave it blank. This is only if you had previous business income in prior years and now you decided that the same business activity is just a hobby (intentions are not to make a profit aka nonbusiness income).