Sales Tax and Income Tax

The partnership shall make this election on its Personal Property Tax Replacement Income Tax return for that taxable year. The election to pass through the credits shall be irrevocable.

Mean and include an individual, a trust, estate, partnership, association, firm, company, corporation, limited liability company, or fiduciary. For purposes of Section 1301 and 1302 of this Act, a ”person” means an individual, a corporation, an officer, agent, or employee of a corporation, a member, agent or employee of a partnership, or a member, manager, employee, officer, director, or agent of a limited liability company who in such capacity commits an offense specified in Section 1301 and 1302. In the case of a tax for a current taxable year, the Director shall declare the taxable period of the taxpayer immediately terminated and his notice and demand for a return and immediate payment of the tax shall relate to the period declared terminated, including therein income accrued and deductions incurred up to the date of termination if not otherwise properly includible or deductible in respect of such taxable year. ”Refund” means a refund of overpaid income taxes imposed by the State of Illinois or the claimant state. The amount of any proposed assessment set forth in the notice shall be limited to the amount of such erroneous refund.

Illinois State Tax Guide

For the purposes of this section, gross receipts from the performance of services provided to a corporation, partnership, or trust may only be attributed to a state where that corporation, partnership, or trust has a fixed place of business. If the state where the services are received is not readily determinable or is a state where the corporation, partnership, or trust receiving the service does not have a fixed place of business, the services shall be deemed to be received at the location of the office of the customer from which the services were ordered in the regular course of the customer’s trade or business. If the ordering office cannot be determined, the services shall be deemed to be received what is illinois income tax rate at the office of the customer to which the services are billed. If the taxpayer is not taxable in the state in which the services are received, the sale must be excluded from both the numerator and the denominator of the sales factor. The Department shall adopt rules prescribing where specific types of service are received, including, but not limited to, publishing, and utility service. For tax years beginning on or after January 1, 2025, a taxpayer who has entered into an agreement under the Manufacturing Illinois Chips for Real Opportunity Act is entitled to a credit against the taxes imposed under subsections and of Section 201 of this Act in an amount to be determined in the agreement.

• Nonresident of winnings under the Illinois Lottery Law and not required to withhold Illinois income tax from such payment under Subsection of Section 701 of this Act because those winnings are not subject to Federal income tax withholding, must withhold Illinois income tax from such payment at a rate equal to the percentage tax rate for individuals provided in subsection of Section 201, provided that withholding is not required if such payment of winnings is less than $1,000.
• Under Section 207 that, pursuant to this subsection , could not be taken into account either in computing the tax assessed prior to January 1, 1999 for a taxable year or in reducing a deficiency for that taxable year under paragraph of subsection , the allowance of such credit or loss in any other taxable year shall not be denied on the grounds that such credit or loss should properly have been claimed in that taxable year under subsection or .
• 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.
• Group administration for taxpayers that are members of a unitary business group.
• The Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not exceed $20,000,000 in any State fiscal year.
• For application against tax due of overpayments of tax for a prior year, see Section 909.
• Every employer who deducts and withholds or is required to deduct and withhold tax under this Act is liable for such tax.

For each taxable year beginning on or after January 1, 2007 and ending on or before December 30, 2010, each taxpayer is entitled to a credit against the tax imposed by subsections and of Section 201 of this Act in an amount equal to 5%, but in no event to exceed $600, of the gross wages paid by the taxpayer to a qualified veteran in the course of that veteran’s sustained employment during the taxable year. For each taxable year beginning on or after January 1, 2010, each taxpayer is entitled to a credit against the tax imposed by subsections and of Section 201 of this Act in an amount equal to 10%, but in no event to exceed $1,200, of the gross wages paid by the taxpayer to a qualified veteran in the course of that veteran’s sustained employment during the taxable year. For tax years beginning on or after January 1, 2025, a taxpayer shall be allowed a credit against the tax imposed by subsections and of Section 201 for investment in qualified property which is placed in service at the site of a project that is subject to an agreement between the taxpayer and the Department of Commerce and Economic Opportunity pursuant to the Manufacturing Illinois Chips for Real Opportunity Act. If the taxpayer is a partnership or a 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.

Illinois Fair Tax

For tax years beginning on or after January 1, 2019 and ending on or before December 31, 2023, a taxpayer who qualifies for a credit under the Historic Preservation Tax Credit Act is entitled to a credit against the taxes imposed under subsections and of Section 201 of this Act as provided in that Act. If the amount of any tax credit awarded under this Section exceeds the qualified taxpayer’s income tax liability for the year in which the qualified rehabilitation plan was placed in service, the excess amount may be carried forward as provided in the Historic Preservation Tax Credit Act. For taxable years beginning after December 31, 2010, and ending on or before December 31, 2026, subject to the limitations provided in this Section, a claimant may claim, as a credit against the tax imposed under subsections and of Section 201 of this Act, an amount equal to 25% of the claimant’s investment made directly in a qualified new business venture.

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.