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90_HB3887
35 ILCS 5/204 from Ch. 120, par. 2-204
35 ILCS 5/702 from Ch. 120, par. 7-702
35 ILCS 5/703 from Ch. 120, par. 7-703
Amends the Illinois Income Tax Act. Increases the basic
amount standard exemption for individuals from $1,000 to
$1,200 in 1998, $1,400 in 1999, $1,600 in 2000, $1,800 in
2001, and $2,000 in 2002 and thereafter. Provides that a
taxpayer whose Illinois base income exceeds $1,200 in 1998,
$1,400 in 1999, $1,600 in 2000, $1,800 in 2001, and $2,000 in
2002 and thereafter (now $1,000) and who is claimed as a
dependent on another person's return shall not be allowed the
standard exemption. Increases the additional exemption an
individual taxpayer may claim for each dependent from $1,000
to $1,200 in 1998, $1,400 in 1999, $1,600 in 2000, $1,800 in
2001, and $2,000 in 2002 and thereafter. Adjusts the
withholding provisions beginning with the fourth quarter of
1998. Exempts the additional exemptions from the sunset
provisions. Effective immediately.
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1 AN ACT concerning taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5 changing Sections 204, 702, and 703 as follows:
6 (35 ILCS 5/204) (from Ch. 120, par. 2-204)
7 Sec. 204. Standard Exemption.
8 (a) Allowance of exemption. In computing net income
9 under this Act, there shall be allowed as an exemption the
10 sum of the amounts determined under subsections (b), (c) and
11 (d), multiplied by a fraction the numerator of which is the
12 amount of the taxpayer's base income allocable to this State
13 for the taxable year and the denominator of which is the
14 taxpayer's total base income for the taxable year.
15 (b) Basic amount. For the purpose of subsection (a) of
16 this Section, except as provided by subsection (a) of Section
17 205 and in this subsection, each taxpayer shall be allowed a
18 basic amount of $1000. For taxable years ending on or after
19 December 31, 1992 and ending before December 31, 1998, a
20 taxpayer whose Illinois base income exceeds $1,000 and who is
21 claimed as a dependent on another person's tax return under
22 the Internal Revenue Code of 1986 shall not be allowed any
23 basic amount under this subsection.
24 (1) For the taxable year ending on December 31,
25 1998, each individual taxpayer shall be allowed an
26 additional basic amount of $200. For the taxable year
27 ending on December 31, 1998, a taxpayer whose Illinois
28 base income exceeds $1,200 and who is claimed as a
29 dependent on another person's tax return under the
30 Internal Revenue Code of 1986 shall not be allowed any
31 basic amount or additional basic amount under this
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1 subsection.
2 (2) For taxable year 1999, each individual taxpayer
3 shall be allowed an additional basic amount of $400. For
4 taxable year 1999, a taxpayer whose Illinois base income
5 exceeds $1,400 and who is claimed as a dependent on
6 another person's tax return under the Internal Revenue
7 Code of 1986 shall not be allowed any basic amount or
8 additional basic amount under this subsection.
9 (3) For taxable year 2000, each individual taxpayer
10 shall be allowed an additional basic amount of $600. For
11 taxable year 2000, a taxpayer whose Illinois base income
12 exceeds $1,600 and who is claimed as a dependent on
13 another person's tax return under the Internal Revenue
14 Code of 1986 shall not be allowed any basic amount or
15 additional basic amount under this subsection.
16 (4) For taxable year 2001, each individual taxpayer
17 shall be allowed an additional basic amount of $800. For
18 taxable year 2001, a taxpayer whose Illinois base income
19 exceeds $1,800 and who is claimed as a dependent on
20 another person's tax return under the Internal Revenue
21 Code of 1986 shall not be allowed any basic amount or
22 additional basic amount under this subsection.
23 (5) For taxable years 2002 and thereafter, each
24 individual taxpayer shall be allowed an additional basic
25 amount of $1000. For taxable years 2002 and thereafter, a
26 taxpayer whose Illinois base income exceeds $2,000 and
27 who is claimed as a dependent on another person's tax
28 return under the Internal Revenue Code of 1986 shall not
29 be allowed any basic amount or additional basic amount
30 under this subsection.
31 (c) Additional amount for individuals. In the case of an
32 individual taxpayer, there shall be allowed for the purpose
33 of subsection (a), in addition to the basic amount provided
34 by subsection (b):,
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1 (1) For taxable years ending before December 31,
2 1998, an additional exemption in the amount of $1000 for
3 each exemption in excess of one allowable to such
4 individual taxpayer for the taxable year under Section
5 151 of the Internal Revenue Code.
6 (2) For the taxable year ending on December 31,
7 1998, an additional exemption in the amount of $1,200 for
8 each exemption in excess of one allowable to such
9 individual taxpayer for the taxable year under Section
10 151 of the Internal Revenue Code.
11 (3) For taxable year 1999, an additional exemption
12 in the amount of $1,400 for each exemption in excess of
13 one allowable to such individual taxpayer for the taxable
14 year under Section 151 of the Internal Revenue Code.
15 (4) For taxable year 2000, an additional exemption
16 in the amount of $1,600 for each exemption in excess of
17 one allowable to such individual taxpayer for the taxable
18 year under Section 151 of the Internal Revenue Code.
19 (5) For taxable year 2001, an additional exemption
20 in the amount of $1,800 for each exemption in excess of
21 one allowable to such individual taxpayer for the taxable
22 year under Section 151 of the Internal Revenue Code.
23 (6) For taxable years 2002 and thereafter, an
24 additional exemption in the amount of $2,000 for each
25 exemption in excess of one allowable to such individual
26 taxpayer for the taxable year under Section 151 of the
27 Internal Revenue Code.
28 (d) Additional exemptions for an individual taxpayer and
29 his or her spouse. In the case of an individual taxpayer and
30 his or her spouse, he or she shall each be allowed additional
31 exemptions as follows:
32 (1) Additional exemption for taxpayer or spouse 65
33 years of age or older.
34 (A) For taxpayer. An additional exemption of
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1 $1,000 for the taxpayer if he or she has attained
2 the age of 65 before the end of the taxable year.
3 (B) For spouse when a joint return is not
4 filed. An additional exemption of $1,000 for the
5 spouse of the taxpayer if a joint return is not made
6 by the taxpayer and his spouse, and if the spouse
7 has attained the age of 65 before the end of such
8 taxable year, and, for the calendar year in which
9 the taxable year of the taxpayer begins, has no
10 gross income and is not the dependent of another
11 taxpayer.
12 (2) Additional exemption for blindness of taxpayer
13 or spouse.
14 (A) For taxpayer. An additional exemption of
15 $1,000 for the taxpayer if he or she is blind at the
16 end of the taxable year.
17 (B) For spouse when a joint return is not
18 filed. An additional exemption of $1,000 for the
19 spouse of the taxpayer if a separate return is made
20 by the taxpayer, and if the spouse is blind and, for
21 the calendar year in which the taxable year of the
22 taxpayer begins, has no gross income and is not the
23 dependent of another taxpayer. For purposes of this
24 paragraph, the determination of whether the spouse
25 is blind shall be made as of the end of the taxable
26 year of the taxpayer; except that if the spouse dies
27 during such taxable year such determination shall be
28 made as of the time of such death.
29 (C) Blindness defined. For purposes of this
30 subsection, an individual is blind only if his or
31 her central visual acuity does not exceed 20/200 in
32 the better eye with correcting lenses, or if his or
33 her visual acuity is greater than 20/200 but is
34 accompanied by a limitation in the fields of vision
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1 such that the widest diameter of the visual fields
2 subtends an angle no greater than 20 degrees.
3 (e) Cross reference. See Article 3 for the manner of
4 determining base income allocable to this State.
5 (f) The changes made by this amendatory Act of 1998 are
6 exempt from the provisions of Section 250.
7 (Source: P.A. 86-146; 87-880; 87-1246.)
8 (35 ILCS 5/702) (from Ch. 120, par. 7-702)
9 Sec. 702. Amount Exempt from Withholding. For purposes of
10 this Section an employee shall be entitled to a withholding
11 exemption in an amount equal to (i) $1,000 through the third
12 quarter of calendar year 1998 and $1,200 for the fourth
13 quarter of calendar year 1998, (ii) $1,400 for calendar year
14 1999, (iii) $1,600 for calendar year 2000, (iv) $1,800 for
15 calendar year 2001, and (v) $2,000 for calendar year 2002 and
16 each year thereafter for each personal or dependent exemption
17 which he is entitled to claim on his federal return pursuant
18 to Section 151 of the Internal Revenue Code of 1986; plus an
19 allowance equal to $1,000 for each $1,000 he is entitled to
20 deduct from gross income in arriving at adjusted gross income
21 pursuant to Section 62 of the Internal Revenue Code of 1986;
22 plus an additional allowance equal to $1,000 for each $1,000
23 eligible for subtraction on his Illinois income tax return as
24 Illinois real estate taxes paid during the taxable year; or
25 in any lesser amount claimed by him. Every employee shall
26 furnish to his employer such information as is required for
27 the employer to make an accurate withholding under this Act.
28 The employer may rely on this information for withholding
29 purposes. If any employee fails or refuses to furnish such
30 information, the employer shall withhold the full rate of tax
31 from the employee's total compensation.
32 (Source: P.A. 85-731.)
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1 (35 ILCS 5/703) (from Ch. 120, par. 7-703)
2 Sec. 703. Information Statement. Every employer
3 required to deduct and withhold tax under this Act from
4 compensation of an employee, or who would have been required
5 so to deduct and withhold tax if the employee's withholding
6 exemption were not in excess of (i) $1,000 through the third
7 quarter of calendar year 1998 and $1,200 for the fourth
8 quarter of calendar year 1998, (ii) $1,400 for calendar year
9 1999, (iii) $1,600 for calendar year 2000, (iv) $1,800 for
10 calendar year 2001, and (v) $2,000 for calendar year 2002 and
11 each year thereafter, shall furnish in duplicate to each such
12 employee in respect of the compensation paid by such employer
13 to such employee during the calendar year on or before
14 January 31 of the succeeding year, or, if his employment is
15 terminated before the close of such calendar year, on the
16 date on which the last payment of compensation is made, a
17 written statement in such form as the Department may by
18 regulation prescribe showing the amount of compensation paid
19 by the employer to the employee, the amount deducted and
20 withheld as tax, and such other information as the Department
21 shall prescribe. A copy of such statement shall be filed by
22 the employee with his return for his taxable year to which it
23 relates (as determined under section 601(b) (1).
24 (Source: P.A. 76-261.)
25 Section 99. Effective date. This Act takes effect upon
26 becoming law.