Illinois Income Tax Calculator

illinois income tax

Illinois does not have a standard or itemized deduction; instead, it offers a personal exemption of $2,375 for the 2021 tax year. For married individuals over 65 that filed tax returns jointly, you’re allowed an additional $1,000. To determine if you should itemize your deductions, add up your calendar-year deductible expenses, including your state income tax expense, to see if the total is greater than the standard deduction amount for your filing status.

illinois income tax

This means that no matter how much money you make, you pay that same rate. Sales and property taxes in Illinois are among the highest in the nation. Qualified education expenses over $250 are eligible for a tax credit. Parents or legal guardians of full-time students under the age of 21 at the end of the school year can claim the credit as long as the student attended kindergarten through 12th grade at a public or nonpublic school in Illinois during the tax year.

Additional fees apply with Earned Income Credit and you file any other returns such as city or local income tax returns, or if you select other products and services such as Refund Transfer. Beginning with tax years ending on or after December 31, 1991, every individual taxpayer shall be entitled to a tax credit equal to 5% of real property taxes paid by such taxpayer during the taxable year on the principal residence of the taxpayer. In the case of multi-unit or multi-use structures and farm dwellings, the taxes on the taxpayer’s principal residence shall be that portion of the total taxes which is attributable to such principal residence. Notwithstanding any other provision of law, for taxable years beginning on or after January 1, 2017, no taxpayer may claim a credit under this Section if the taxpayer’s adjusted gross income for the taxable year exceeds $500,000, in the case of spouses filing a joint federal tax return, or $250,000, in the case of all other taxpayers. “Qualified taxpayer” means the owner of the qualified historic structure or any other person who qualifies for the federal rehabilitation credit allowed by Section 47 of the federal Internal Revenue Code with respect to that qualified historic structure.

Illinois Tax Credits

As a traditional W-2 employee, your Illinois taxes will be withheld and deposited from each paycheck automatically. You will see this on your paycheck, near or next to the federal taxes. Agreement for any taxable year ending after the noncompliance date.

  • You can’t claim this credit if your federal AGI exceeds $250,000, or $500,000 if you’re married and file a joint return.
  • Subsection of Section 201 changes during a portion of the taxable year to which that rate is applied under paragraphs or of this subsection , the tax for that portion of the taxable year for purposes of paragraph or of this subsection shall be determined as if that portion of the taxable year were a separate taxable year, following the rules set forth in Section 202.5 of this Act.
  • Faster access to funds is based on comparison of traditional banking policies for check deposits versus electronic direct deposit.
  • All resident and nonresident aliens for tax purposes who earned income in the State of Illinois in 2020 must complete and file Illinois Form 1040.
  • These provisions limiting your liability do not apply to debit transactions not processed by MasterCard or to unregistered cards.
  • John Bouman, president of the Shriver Center on Poverty Law, was the chairperson of Vote Yes for Fair Tax.

Illinois automatically registers eligible individuals to vote through the Department of Motor Vehicles and other designated automatic voter registration agencies. To register to vote in Illinois, a person must be a U.S. citizen, a resident of an Illinois precinct for at least 30 days prior to election day, and at least 18 years old by election day. A 17-year-old may vote in a primary if he or she will be 18 years old at the subsequent general election. Click Show to read details about the tax-related measures on statewide ballots in 2020. In the wake of the COVID-19 pandemic, now is the worst possible time for a massive tax increase.

If the taxpayer is a partnership or Subchapter S corporation, the credit shall be allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code. The Department, in cooperation with the Department of Commerce and Economic Opportunity, shall adopt rules to enforce and administer the provisions of this Section. This Section is exempt from the provisions of Section 250 of this Act. The township assessor or, if the township assessor is unable, the chief county assessment officer of the county in which the property is located, shall issue a certificate to the taxpayer identifying the taxpayer’s property as damaged as a result of the natural disaster. The certificate shall include the name and address of the property owner, as well as the property index number or permanent index number of the damaged property. The taxpayer shall attach a copy of such certificate to the taxpayer’s return for the taxable year for which the credit is allowed. Corporations, and owners of limited liability companies, if the liability company is treated as a partnership for the purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

Illinois Income Taxes

In no event may a credit under this Section reduce the taxpayer’s liability to less than zero. For taxable years ending on or after December 31, 1992, a taxpayer whose Illinois base income exceeds the basic amount and who is claimed as a dependent on another person’s tax return under the Internal Revenue Code shall not be allowed any basic amount under this subsection. 1, 1969 appreciation amounts for all property in respect of which such gain was reported for federal income tax purposes for the taxable year, or the net capital gain for the taxable year, reduced in either case by any amount of such gain included in the amount determined under subsection or . For all taxable years following the taxable year in which the rate has been reduced pursuant to this Section, the tax rate set forth in subsection of Section 201 of this Act shall be 3% of the taxpayer’s net income for individuals, trusts, and estates and 4.8% of the taxpayer’s net income for corporations. If there is a credit under this subsection from more than one tax year that is available to offset a liability the earliest credit arising under this subsection shall be applied first. The credit or credits may not reduce the taxpayer’s liability to less than zero. If the amount of the credit or credits exceeds the taxpayer’s liability, the excess may be carried forward and applied against the taxpayer’s liability in succeeding calendar years in the manner provided under paragraph of Section 211 of this Act.

  • Upon receiving notification by the Department of Commerce and Economic Opportunity of the noncompliance of a Taxpayer with an Agreement, the Department shall notify the Taxpayer that no credit is allowed with respect to that Agreement for any taxable year ending after the Noncompliance Date, as stated in such notification.
  • Yes, all international students and scholars as well as their dependents are required to file at least one tax form for every year they are present in the U.S. regardless of whether or not they earned any money.
  • A graduated income tax allows legislators to determine different rates for both individuals and corporations based on income earned.
  • For each taxable year beginning on or after January 1, 2003, if the amount of the credit exceeds the income tax liability for the applicable tax year, then the excess credit shall be refunded to the taxpayer.
  • The period of sustained employment may be completed after the end of the taxable year in which the veteran is hired.
  • The standard exemption provided by Section 204 shall be divided between the respective periods in amounts which bear the same ratio to the total exemption allowable under Section 204 as the total number of days in each such period bears to the total number of days in the taxable year.

When you’re on the Link2Gov site, click the “Form IL 1040”, “Form IL 1040ES” or “Form IL 505-I” link to submit a payment for an individual tax return, estimated taxes, or an extension. If you’re paying on the Official Payments site, follow the on-screen prompts to enter and submit your current year payment information (or go here to submit a prior-year IL tax paymentor go here to submit estimated IL tax payments). On the PayILTax site, click the “Make a Payment” button and follow all the on-screen prompts to submit your payment. Next, from AGI we subtract exemptions and deductions to get your taxable income.

The vote requirement for constitutional amendments was either 60 percent of votes cast on the ballot measure itself or a simple majority of all of those voting in the election. Illinois’ individual income tax increased from 3.75% to 4.95% on July 1, 2017. This credit is for a portion of the expenses you paid for your dependent child or children to attend kindergarten through 12th grade at a public or nonpublic Illinois school. Your student must be under age 21, and both of you must have been Illinois residents at the time the expenses were paid. All residents and non-residents who receive income in the state must pay the state income tax. You must pay tax to Illinois on any income you earn there if you work there and live in any other state except Wisconsin, Iowa, Kentucky, or Michigan. Illinois has reciprocity with these four states, so residents can cross state lines to work there without worrying about paying income tax to their non-resident state.

The Education Expense Credit

A new client is an individual who did not use H&R Block office services to prepare his or her 2016 tax return. Valid receipt for 2016 tax preparation fees from a tax preparer other than H&R Block must be presented prior to completion of initial tax office interview. Offer period March 1 – 25, 2018 at participating offices only. To qualify, tax return must be paid for and filed during this period. Visit to find the nearest participating office or to make an appointment.

SmartAsset does not review the ongoing performance of any RIA/IAR, participate in the management of any user’s account by an RIA/IAR or provide advice regarding specific investments. Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program. First, we calculate your adjusted gross income by taking your total household income and reducing it by certain items such as contributions to your 401.

  • Four PACs—Coalition to Stop the Proposed Tax Hike, Say No to More Taxes, Chambers Against Progressive Income Tax, and Vote No on the Progressive Tax—raised funds to oppose the constitutional amendment.
  • If you had taxes withheld from employment-based income and have not received your Form W-2 by January 31st, contact your employer.
  • Section 709.5 of this Act shall not apply to a partnership or Subchapter S corporation for the taxable year for which an election under paragraph is in effect.
  • Please note that the State of Illinois considers the term “nonresidents” as someone who has lived in a different U.S. state other than Illinois.
  • Please check with your employer or benefits provider as they may not offer direct deposit or partial direct deposit.

Residents of these four states who work in Illinois only need to pay tax in their state of residence, not to Illinois. The state put the question of switching over to a progressive tax system to voters on the November 2020 ballot. But the measure was defeated, and the flat tax remains. One quarter (1/4) of the liability for the February, March, and April 2020 reporting periods is due August 20, 2020.


The state’s Schedule M offers a full list of the additions and subtractions that the state recognizes. The list changes periodically, so check back each year to ensure that the items you claim are appropriate for that year. “Subtractions” are items that are taxed federally but not taxed in Illinois, such as retirement and Social Security income and contributions to 529 college savings plans.

illinois income tax

The General Assembly shall provide by law for the rate or rates of any tax on or measured by income imposed by the State. In any such tax imposed upon corporations the highest rate shall not exceed the highest rate imposed on individuals by more than a ratio of 8 to 5. “Proposed Amendment to the 1970 Illinois ConstitutionThe proposed amendment grants the State authority to impose higher income tax rates on higher income levels, which is how the federal government and a majority of other states do it. The amendment would remove the portion of the Revenue Article of the Illinois Constitution that is sometimes referred to as the “flat tax,” that requires all taxes on income to be at the same rate.

You can select one of these payment options either after you have e-filed or filed your 2021 Illinois Tax Return. Alternatively, you can pay IL income tax here prior to filing (e.g with an extension). Plus, you can make online Illinois tax estimated payments for next tax year.

If you need assistance please contact a tax professional. As a reminder, the IRS will NOT initiate email contact with a taxpayer without consent.

Experienced Chicago Tax Attorneys

At the Tax Practice of IIT Chicago-Kent College of Law, you can rely on aggressive, ethical, and personalized representation – I encourage you to make your problem our problem to solve. First-time voters who registered by mail and did not submit their driver’s license number, state ID number, last four digits of their social security number, or illinois income tax other form of ID are required to present identification showing their name and address before voting. The constitutional amendment was introduced into the state legislature as Senate Joint Resolution 1 during the 2019 legislative session. With passage in both the state Senate and House, SJR 1 was referred to the ballot for voter consideration.

illinois income tax

Itemized and standard deductions are not allowed in Illinois, which is consistent with the state’s flat tax system. Available tax credits can reduce the amount of tax owed, however. Taxpayers are allowed to claim personal exemptions of $2,375 as of the 2021 tax year—the return filed in 2022. That amount is an increase from $2,325 in the 2020 tax year.


For security reasons, they should not forward the email, rather they should save the email using “save as” and then send that as an attachment to or forward the email as an attachment to . Use this payment option if you prefer to submit your payment via check, money order, or casher’s check in the mail. Eithercomplete IL installment Form CPP-1, Installment Payment Plan Request, orForm EG-13-I, Financial and Other Information Statements for Individuals (if you owe over $5,000, including interest and penalties). Oct. 17, 2022, you can complete and sign 2021 Illinois Tax Forms online here on eFile, before you download, print and mail them to the state tax agency.

Personal And Sales Taxes

Notwithstanding any other provision of law, for taxable years beginning on or after January 1, 2017, no taxpayer may claim a credit under this subsection if the taxpayer’s adjusted gross income for the taxable year exceeds $500,000, in the case of spouses filing a joint federal tax return or $250,000, in the case of all other taxpayers. This subsection is exempt from the provisions of Section 250 of this Act. For tax years ending after July 1, 1990 and prior to December 31, 2003, and beginning again for tax years ending on or after December 31, 2004, and ending prior to January 1, 2027, a taxpayer shall be allowed a credit against the tax imposed by subsections and of this Section for increasing research activities in this State. The credit allowed against the tax imposed by subsections and shall be equal to 6 1/2% of the qualifying expenditures for increasing research activities in this State. 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall be allowed a credit against the tax imposed by subsections and of this Section for investment in qualified property which is placed in service by a Department of Commerce and Economic Opportunity designated High Impact Business.

Business Taxes

This quarterly survey has been conducted continuously since 1962. The information contained in this survey is the most current information available on a nationwide basis for government tax collections. Illinois offers at least three credits in addition to the one that offsets taxes paid to other states.

The Education Expense Credit provides a credit to parents who spent over $250 on eligible K-12 education expenses. – We regularly check for any updates to the latest tax rates and regulations. Input the total of your itemized deductions, such as mortgage interest, charitable contributions, medical and dental expenses, and state taxes. If your total itemized deductions are less than the standard deduction, the calculator will use the standard deduction.

Having an ITIN does not change your immigration status. You are required to meet government requirements to receive your ITIN. By authorizing H&R Block to e-file your tax return, or by taking the completed return to file, you are accepting the return and are obligated to pay all fees when due. Personal state programs are $39.95 each (state e-file available for $19.95).

Leave a Reply