State tax filing

You are correct.  Illinois (IL) is one of the states that has an outstanding loan with the federal government.  For this reason the FUTA rate is higher in your state.

• As Illinois has an outstanding loan balance, Illinois employers will have a FUTA tax increase of 0.3%, applied to payroll paid from January 1, 2022, through December 31, 2022 (click below for the IL rates).
  • IL Department of Employment Security (IDES) SUTA Rates

Also, IL uses the first $12,960 paid to each employee, so as far as IL, the full wage amount must be used to determine the FUTA rate. Review the state question section  to be sure you answer correctly.  

• Part II, box 10 should be selected as 'No'. 
• Line 23 - Employers in a Credit Reduction State Smart Worksheet, Line 3 must have the state two letter code and the full amount of the wages subject to FUTA (The first $7,000 to each employee for the year).
• You may need to switch to TurboTax CD/Download version to insert this entry. 
  • How do I switch from TurboTax Online to TurboTax CD/Download?

Please update with additional details here if you need further assistance and one our tax experts can help.