summary
Introduced
02/04/2025
02/04/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. In provisions concerning the estimated tax, provides that the required annual payment is the lesser of: (i) 90% of the tax shown on the return for the taxable year, or if no return is filed, 90% of the tax for the year; (ii) 100% of the tax shown on the return of the taxpayer for the preceding taxable year if a return showing a liability for tax was filed by the taxpayer for the preceding taxable year and the preceding year was a taxable year of 12 months; or (iii) 90% of the tax for the taxable year that would have been due based on the Act as it exists on the first day of the taxable year. Effective immediately.
AI Summary
This bill amends the Illinois Income Tax Act to modify the calculation of estimated tax payments for taxpayers. Specifically, it updates the definition of "required annual payment" to include a new provision that allows taxpayers to calculate their estimated tax as the lesser of three options: (1) 90% of the tax shown on their current year's return (or 90% of the tax if no return is filed), (2) 100% of the tax shown on the previous year's return (if that return was for a full 12-month tax year), or (3) 90% of the tax that would have been due based on the Act as it existed on the first day of the taxable year. This change provides taxpayers with additional flexibility in calculating their estimated tax payments and potentially reduces their tax liability by offering an alternative method of calculation. The bill takes effect immediately, which means taxpayers can apply this new calculation method for their current tax year's estimated tax payments.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2697&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB2697.htm |
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