Illinois Administrative Code
Title 86 - REVENUE
Part 100 - INCOME TAX
Subpart A - TAX IMPOSED
Section 100.2055 - Standard Exemption (IITA Section 204)
Current through Register Vol. 48, No. 38, September 20, 2024
a) In computing net income, there shall be allowed as an exemption the sum of the basic amounts provided under subsections (b) and (c) plus the additional exemptions allowed under subsection (d), multiplied by a fraction, the numerator of which is the amount of the taxpayer's base income allocable to this State for the taxable year and the denominator of which is the taxpayer's total base income for the taxable year. (IITA Section 204(a))
b) Each taxpayer shall be allowed an exemption in the basic amount equal to:
c) Each individual taxpayer shall be allowed an additional exemption equal to the basic amount for each exemption in excess of one allowable to that individual taxpayer for the taxable year under IRC section151. (IITA Section 204(c))
d) Additional Exemptions
e) The cost-of-living adjustment for any calendar year and for taxable years ending prior to the end of the subsequent calendar year is equal to $2,050 times the percentage (if any) by which the Consumer Price Index for the preceding calendar year exceeds the Consumer Price Index for the calendar year 2011. For purposes of this subsection (e):
f) In the case of a taxable year for a period of less than 12 months, the standard exemption allowed under this Section shall be prorated on the basis of the number of days in that year to 365. (IITA Section 401(b))
g) Notwithstanding any other provision of law, for taxable years beginning on or after January 1, 2017, 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, the exemption allowed under this Section is zero. (IITA Section 204(g)) For purposes of this provision, each spouse is a separate taxpayer. This provision applies to partnerships, trusts and estates as well as to individuals. For estates and trusts, adjusted gross income is defined in IRC section 67(e). Because partnerships are not required to compute adjusted gross income, partnerships may use taxable income as defined in IITA Section 203(e)(2)(H) for purposes of this subsection (g).