IL-4644

Form IL-4644 is an Illinois Department of Revenue tax form used by individuals, estates, and trusts to report and adjust gains from the sale of employer’s securities received through a qualified employee benefit plan. These plans often include stock distributed from retirement or profit-sharing accounts, such as 401(k) or pension plans, where an employee received employer stock instead of cash.

When these securities are sold, there may be a federal gain from the sale, as shown on the federal Schedule D (Capital Gains and Losses). However, Illinois tax law requires a specific adjustment for what’s called net unrealized appreciation (NUA) — the difference between the fair market value of stock at the time of distribution and its federal tax basis.

Form IL-4644 calculates how much of that gain is taxable to Illinois and how much can be subtracted. It also determines whether part of your gain qualifies for favorable Illinois treatment if the securities were distributed before August 1, 1969 (a date significant in Illinois tax law).

If you have any gain from these sales, this form ensures your Illinois tax return correctly reflects it — preventing double taxation or underreporting. It must be attached to your Form IL-1040 (individual) or Form IL-1041 (estate or trust), along with your federal Schedule D.

How To File Form IL-4644

1. Download the Form: Get it from the official Illinois Department of Revenue website or your tax software.
2. Attach Required Documents: Include this form and a copy of your federal Schedule D with your Illinois Form IL-1040 or IL-1041.
3. Provide Complete Information: Fill out all steps (1 through 4). Use “00” if no value applies; do not leave blanks.
4. Use Federal Figures: Use the same stock descriptions, dates, and gain amounts from your federal return.
5. Follow All Illinois Instructions: The form aligns with Illinois’ specific rules for net unrealized appreciation.
6. Submit It: File with your Illinois income tax return by your standard filing deadline.

How to Complete Form IL-4644

Step 1: Provide The Following Information

Line 1:
Enter your tax year. If filing for a calendar year, write “2024.” If using a fiscal year, enter the beginning and ending month and year (e.g., beginning 01/2024 and ending 12/2024).

Line 2:
Enter your name exactly as it appears on your Form IL-1040 (individual) or IL-1041 (estate or trust).

Line 3:
Enter your Social Security Number (SSN) or Federal Employer Identification Number (FEIN).

Line 4:
Check the appropriate box:

• Individual – for personal returns.
• Estate or trust – if filing as a fiduciary entity.

Step 2: Provide General Security Information

This section lists details of each security sale that generated a gain. You’ll complete Columns A through D for each sale.

• Column A – Description of Security:
  List each security (stock, bond, or other investment) sold. Be specific (e.g., “ABC Corp common stock”). Each sale should be entered on a separate line.
• Column B – Date Distributed (month, year):
  Enter when the security was distributed to you from the qualified employee benefit plan.
• Column C – Date Sold (month, year):
  Enter when you sold the security.
• Column D – Federal Gain on Disposition:
  Enter the gain from the sale as reported on your federal Schedule D.

Lines 5–8:
Use these rows for up to four different securities. If you have more, attach a separate sheet following the same column layout.

Step 3: Calculate Net Unrealized Appreciation

Now, you will calculate the net unrealized appreciation (NUA) on the distributed stock. Fill in Columns E through H for each security listed.

• Column E – Market Value of Stock on Date of Distribution:
  Enter the fair market value (FMV) of the stock when it was distributed from the benefit plan.
• Column F – Federal Tax Basis of Stock on Date of Distribution:
  Enter the cost basis used on your federal return for that stock.
• Column G – Column E minus Column F:
  Subtract Column F from Column E.
  • If Column F is greater than Column E, enter zero (0).
• Column H – Lesser of Columns G or D:
  Compare Column G and Column D; enter the smaller amount.

Lines 9–12:
Enter the amounts for up to four securities.

Line 13 – Total:
Add up all the amounts in Column H (Lines 9–12).

• Enter this total on Form IL-1040, Line 5, or Form IL-1041, Line 14.
• If Line 18 (explained later) is a gain, you must also complete Schedule F and enter this total on Schedule F, Line 13 (IL-1040) or Line 14 (IL-1041).

Step 4: Identify Securities Received In A Distribution Prior To August 1, 1969

This section adjusts for securities received before August 1, 1969, to account for Illinois’ pre-1970 tax law changes. Complete Columns I through M for each such security.

• Column I – August 1, 1969, Value or Applicable Fraction:
  Enter the value of the security on August 1, 1969, or the fractional value applicable under Illinois law.
• Column J – Federal Tax Basis August 1, 1969:
  Enter the tax basis of the stock as of that same date.
• Column K – Column I Minus Column J or Fraction in Column I Times Column D:
  Subtract Column J from Column I, or multiply Column I’s fraction by Column D (see official instructions for detailed cases).
• Column L – The Greater of Columns H or K but Not Greater Than Column D:
  Enter whichever is larger — the value from Column H or Column K — but not exceeding the amount in Column D.
• Column M – Subtract Column H from Column L:
  Subtract Column H from Column L to find the portion of the gain subject to special treatment.

Lines 14–17:
Complete these for each qualifying security.

Line 18 – Total:
Add up all values from Column M (Lines 14–17).

• If this total is a gain, you must complete Schedule F.
• Enter this total on Form IL-1040, Schedule F, Line 3 or Form IL-1041, Schedule F, Line 3.

Authorization and Compliance Notice

At the bottom of the form, Illinois states:

“This form is authorized as outlined under the Illinois Income Tax Act. Disclosure of this information is required. Failure to provide information could result in a penalty.”

The form is Attachment No. 20 and is electronic only (no paper copies).8