Current through Register Vol. 48, No. 38, September 20, 2024
a) General Rules. An employee is entitled to
a withholding exemption equal to the basic amount under IITA Section 204 and
Section 100.2055 of this Part multiplied by the number of withholding
exemptions to which he or she is entitled for federal income tax withholding
purposes plus additional exemptions in the amounts allowed under IITA Section
204 and Section 100.2055. Since the Act does not provide for itemized
deductions for individuals in the computation of net income, no additional
withholding allowances based on those deductions (as provided under
26 USC
3402(m)) are
permitted.
b) Married Employees. A
married employee may not claim a withholding exemption for any dependent (as
defined in
26 USC 152)
unless, if he or she filed a separate federal income tax return, he or she
could claim that dependent on that separate return. He or she may claim any
withholding exemption to which his or her spouse may be entitled (except for
dependents) for federal withholding purposes if the spouse has not claimed that
exemption on an Illinois withholding exemption certificate. However, a married
employee is not entitled to claim any withholding exemption in respect of a
spouse unless they expect to file a joint Illinois income tax return.
c) Examples. Section 100.7100(a) and (b) may
be illustrated by the following examples:
1)
EXAMPLE 1: A and B are married and intend to file separate federal returns. A
and B are residents of Illinois. A, is employed and works for a company in
State X. None of the compensation received from his employer is subject to
Illinois withholding (see Section
100.7010
). B works in Illinois and her salary is subject to Illinois withholding. For
federal withholding purposes, A claims no exemption and B claims two
exemptions, one for herself and one for her spouse, who has not claimed a
withholding exemption for himself on a federal withholding exemption
certificate filed with his employer. Under IITA Section 502(c), A and B must
file a return in Illinois on a separate basis. B may claim only one withholding
exemption for Illinois withholding purposes (i.e., her own exemption) even
though she is entitled to claim two exemptions for federal withholding
purposes.
2) EXAMPLE 2: Assume the
same facts as Example 1, except that A and B have both attained the age of 65.
Accordingly, B claims four withholding exemptions for federal purposes.
However, for Illinois withholding purposes B may claim only her own two
exemptions; one exemption equal to the basic amount for herself and one
additional $1,000 exemption for having attained the age of 65.
3) EXAMPLE 3: Assume the same facts as
Example 1, except that A and not B claims the two exemptions on a federal
withholding exemption certificate. B is entitled to claim one withholding
exemption (her own) for Illinois withholding purposes. However, if A and B
expect to file a joint federal return and accordingly a joint Illinois return,
B may claim two withholding exemptions for Illinois withholding
purposes.
4) EXAMPLE 4: Assume the
same facts as Example 1, except that A has two dependents who qualify as his
dependents under
26 USC 152.
Only A may claim these dependents as withholding exemptions for both federal
and Illinois purposes.
