Illinois issues withholding tables for exemption increase

Illinois has issued revised withholding tables to reflect a new personal exemption amount. The personal exemption amount has increased from $2,000 to $2,225 for 2018. The change is retroactive until January 1, 2018.

The increase is the result of recently enacted S.B. 1427 that was signed by Gov. Bruce Rauner on August 14, and effective the same day. The standard exemption calculation including the cost-of-living adjustment under the bill has been extended to taxable years ending on or before December 31, 2023.

According to Bulletin FY-2019-04, the change is likely to result in amounts withheld before the change to be slightly more than is required and a decrease in the amount of tax required to be withheld after the change. (Public Act 100-0865, S.B. 1427, Laws 2018, approved and effective August 14, 2018, http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=100-0865&GA=100; FY-2019-14, August 2018, http://tax.illinois.gov/Publications/Bulletins/2019/FY-2019-04.pdf; and Booklet IL-700-T, Illinois Withholding Tax Tables, http://tax.illinois.gov/taxforms/Withholding/IL-700-T.pdf.)

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