Where do I find my net income on Form 1120S for payment plan?

Thanks for clearing that up! If I'm understanding right, Line 21 shows what the business actually made after all expenses. One more thing - this is for my 2023 taxes, but I haven't filed yet for 2024 (getting an extension). Should I be using 2023 numbers then?

You're absolutely right - Line 21 shows what the business actually made after all expenses are accounted for. That's the figure that represents your company's true profitability. For your payment plan, you should use the most recently filed tax return information. Since you haven't filed 2024 yet (which makes sense since you're on extension), the DOR will expect you to use the 2023 numbers from your completed 1120S. Just make sure you're using the final filed version if you made any amendments.

How does it work with multi-page tax forms? My 1120S has a bunch of schedules and I'm never sure if I'm looking at the right place. Does it handle all those different sections?

Sounds interesting but kinda skeptical. Does it actually explain WHY certain lines are considered net income instead of just pointing? The DOR agent I talked to mentioned something about "adjusted net income" which isn't even a line item on the form.

It handles multi-page forms great - that was actually one of my issues too. It analyzes the whole document including all schedules and connects related information across pages. It even showed me where numbers on one schedule fed into the main form. For the "why" question, it definitely does explain the reasoning. When I uploaded my forms, it explained that net income for DOR purposes typically refers to ordinary business income (Line 21) because that represents earnings after business deductions but before distributions. It also noted different agencies might have slightly different definitions of "adjusted net income" and explained how to calculate those variations if needed.

How exactly does this work? Seems weird that they could somehow get you through the phone system faster than calling yourself.

Yeah right. No way this actually works better than just calling repeatedly yourself. DOR phone systems are designed to make you wait or hang up - there's no "secret method" to get through.

It doesn't get you through faster than the normal queue - what it does is wait in the queue for you. Their system dials and navigates the phone tree, then holds your place in line. When it detects a human has picked up, it connects the call to your phone. So instead of you personally waiting on hold for 3+ hours, their system does it for you. No secret method or line-cutting - you still wait the same amount of time the DOR would normally take, but you don't have to personally sit there listening to hold music. You can go about your day and they call you when an agent is about to answer.

Did they take both forms at once or did they come back asking for the 4562 after you submitted the payment plan request? I'm trying to get this done in one shot if possible.

They asked for the additional form after I submitted my initial payment plan request. It added about 2 weeks to the process because they sent a letter requesting the additional information rather than calling or emailing me. If you want to avoid the delay, I'd recommend submitting both forms together. Include a cover sheet explaining that you're providing the depreciation information proactively to speed up the review process. The payment plan processors seemed to appreciate when I anticipated what they needed rather than waiting for them to ask.

This is super helpful! Do you know what Illinois specifically requires? Their form just says "net income" without specifying.

Illinois generally uses Line 21 as the starting point, but they typically require you to add back any Illinois-specific adjustments from Schedule M (if you had to file one). If you didn't have any Illinois adjustments, then Line 21 should be sufficient. When in doubt though, I always recommend calling the Illinois DOR payment plan department directly at their specific number (not the general helpline) which should be listed on the payment plan form. Ask for the "technical definition of net income for payment plan qualification purposes" - using that specific phrasing will usually get you transferred to someone who knows exactly what line they're looking for.

This is exactly the kind of practical advice that would have saved me hours of stress! I wish I had thought to call and ask for the specific worksheet you mentioned. One question though - when you called, did you get through to someone knowledgeable right away, or did you have to navigate through multiple transfers? I'm dreading having to spend half my day on hold just to get this one question answered, but it sounds like it's definitely worth doing to get it right the first time.