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Returning Member
posted Oct 13, 2024 7:03:12 AM

Abbott / Abbvie and 1299-C

I have owned Abbott and Abbvie stock for many many many years.  Recently got more into investing in general and started digging into each stock and their tax implications.  Came across Abbott/Abbvie "High Impact Business (“HIB”) Schedule 1299-C".

 

Just been paying fed/state taxes for many years on these stocks. Not sure I understand about foreign trade zone and is designated a “High Impact Business” concept and the 1299-C form.  Can anyone explain to me what this is, how it works, what the impact is to my taxes (assuming positive)? Not a lot out there about it and struggling to understand short of opening like TurboTax and doing a mock walk thru of what it does.

 

One other item, is there a path to deal with taxes I paid that I probably shouldn't have for let's say the last 18 years around this Illinois specific item?

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1 Best answer
Level 15
Oct 13, 2024 10:58:01 AM

in short Illinois allows a deduction for these dividends by filing form 1299-C each year if included in federal taxable income

abbott letter

https://www.abbottinvestor.com/static-files/3899893c-6874-4824-89ae-7e137419618b 

abbvie

Https://investors.abbvie.com/static-files/35fb1849-bc14-44fe-9a3b-740bb1dc81a8 \

for your information generally these letters are posted on the company's website under shareholder/investor relations

two other publicly traded companies in a HIB zone are Caterpillar and Walgreens

 

 

you may even be able to file online

https://tax.illinois.gov/programs/mytax/il-1040-x.html 

 

if you extended your Illinois 2020 return you have until about 10/15/2024 to file an amended return to claim a refund.prior years - it's too late

 

 

you are correct. the 1040/1299-C Illinois instructions contain no details about companies whose dividends qualify for a subtraction being either a River Edge Redevelopment Zone or High Impact Business within a Foreign Trade Zone. 

 

as to river edge qualified companies even less info is available

see this website

https://dceo.illinois.gov/ 

 

 

5 Replies
Level 15
Oct 13, 2024 7:38:10 AM

Returning Member
Oct 13, 2024 7:53:13 AM

Yes and thanks.  I read that thread but it didn't answer my questions.  Well answered some of them but didn't post those other ones as read it first. 🙂

Level 15
Oct 13, 2024 10:58:01 AM

in short Illinois allows a deduction for these dividends by filing form 1299-C each year if included in federal taxable income

abbott letter

https://www.abbottinvestor.com/static-files/3899893c-6874-4824-89ae-7e137419618b 

abbvie

Https://investors.abbvie.com/static-files/35fb1849-bc14-44fe-9a3b-740bb1dc81a8 \

for your information generally these letters are posted on the company's website under shareholder/investor relations

two other publicly traded companies in a HIB zone are Caterpillar and Walgreens

 

 

you may even be able to file online

https://tax.illinois.gov/programs/mytax/il-1040-x.html 

 

if you extended your Illinois 2020 return you have until about 10/15/2024 to file an amended return to claim a refund.prior years - it's too late

 

 

you are correct. the 1040/1299-C Illinois instructions contain no details about companies whose dividends qualify for a subtraction being either a River Edge Redevelopment Zone or High Impact Business within a Foreign Trade Zone. 

 

as to river edge qualified companies even less info is available

see this website

https://dceo.illinois.gov/ 

 

 

Returning Member
Oct 13, 2024 5:57:10 PM

Thanks for the information.  So is it fair to say it doesn't effect my Federal return but does my State?  Little I found on this sounded like it would make it state free?

Level 15
Oct 13, 2024 6:46:40 PM

Little I found on this sounded like it would make it state free?

not unless after subtracting these dividends you have no taxable or income or if you still have taxable income for the state, state tax credits reduce your tax to zero.