Instructional Materials and Supplies Credit (New)įor tax years beginning on or after January 1, 2017, a credit is allowed equal to the amount paid during the taxable year for instructional materials and supplies with respect to classroom-based instruction in a qualified school, or $250, whichever is less, provided that the taxpayer is a teacher, instructor, counselor, principal, or aide in a qualified school for at least 900 hours during a school year. Illinois Property Tax Creditįor tax years beginning on or after January 1, 2017, the Illinois Property Tax Credit is not allowed if the taxpayer’s adjusted gross income for the taxable year exceeds $500,000 for returns with a federal filing status of married filing jointly, or $250,000 for all other returns. The K-12 Education Expense Credit is not allowed if the taxpayer’s adjusted gross income for the taxable year exceeds $500,000 for returns with a federal filing status of married filing jointly, or $250,000 for all other returns. K-12 Education Expense Creditįor tax years ending on or after December 31, 2017, the maximum amount of the K-12 Education Expense Credit has been increased to $750 per family. Standard Exemption Allowanceįor tax years beginning on or after January 1, 2017, the personal exemption allowance may not be claimed if the taxpayer’s adjusted gross income for the taxable year exceeds $500,000 for returns with a federal filing status of married filing jointly, or $250,000 for all other returns. For tax years beginning on or after January 1, 2018, the earned income credit increases to 18 percent of the federal earned income tax credit. For corporations (excluding S corporations), the Illinois Income Tax is increasing from 5.25 percent (.0525) to 7 percent (.07).įor tax years beginning on or after January 1, 2017, and before January 1, 2018, the earned income credit is increased to 14 percent of the federal earned income tax credit.For individuals, trusts, and estates, the Illinois Income Tax is increasing from 3.75 percent (.0375) to 4.95 percent (.0495).Individual & Business Tax Changes What are the changes to Illinois Income Tax? Tax RatesĮffective July 1, 2017, income tax rates increase as follows: Employees who exceed these income amounts may complete a new Form IL-W-4, Employee’s and other Payee’s Illinois Withholding Allowance Certificate, to update their exemption amounts and increase their Illinois withholding. What are the changes to the personal exemption amount that affect withholding?įor tax years beginning on or after January 1, 2017, the personal exemption allowance may not be claimed if the taxpayer’s adjusted gross income for the taxable year exceeds $500,000 for returns with a federal filing status of married filing jointly, or $250,000 for all other returns. Amounts paid to purchase rights to Illinois lottery winnings reported on a Form 1099-MISC.īooklet IL-700-T, Illinois Withholding Tax Tables, has been updated and is available on the Illinois Department of Revenue website.Gambling and lottery winnings (paid by the entity issuing the winnings such as the Illinois Lottery or a casino), usually reported to a recipient on a Form W-2G.Non-wage income such as pensions, annuities, unemployment income, and sick pay that you have agreed to voluntarily withhold, usually reported to a recipient on a Form 1099.Wages and other employee compensation including bonus, overtime, and commission pay, usually reported to the recipient on a Form W-2.The new income tax rate applies to Illinois income tax withholding (either required or by voluntary agreement) on Illinois income, including, but not limited to: The Illinois Income Tax rate for individuals has increased from 3.75 percent (.0375) to 4.95 percent (.0495), effective. Withholding Rate Changes (Affecting Employers and Employees) Employers - You must now immediately adjust withholding tax rates in your payroll records and inform employees. Read the below article for the most recent IL tax changes affecting all taxpayers and businesses. In a surprise overturned veto, the Illinois government has recently enacted new law that takes effect.
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