Current through Register Vol. 48, No. 38, September 20, 2024
a) Requirement to Pay Estimated Tax. Every
taxpayer other than an estate, trust, partnership, subchapter S corporation or
farmer is required to pay estimated tax for the taxable year, in such amount
and with such forms as the Department shall prescribe, if the amount payable as
estimated tax can reasonably be expected to be more than:
1) $250 for taxable years ending before
December 31, 2001 and $500 for taxable years ending on or after December 31,
2001; or
2) $400 for corporations.
(IITA Section 803(a))
b)
Definitions. For purposes of this Section:
1)
The term "estimated tax" means the excess of the total regular income tax and
replacement taxes expected to be imposed for the taxable year under IITA
Section 201, including the amount of any credit required to be recaptured under
the IITA, over the sum of:
A) the total amount
expected to be withheld against that tax under IITA Article 7; plus
B) the total estimated credits against those
taxes allowable for the taxable year.
2) The term "farmer" means an individual
whose gross income from farming for the taxable year is at least 2/3 of total
gross income for that year. (IITA Section 803(e)) A taxpayer has "gross income
from farming" for the taxable year to the extent the taxpayer has gross income
from farming for the current taxable year under Internal Revenue Code section
6654(i)(2).
3) The term "nursing
home" means a skilled nursing or intermediate long term care facility that is
subject to licensure by the Illinois Department of Public Health under the
Nursing Home Care Act [210 ILCS 45 ]. (IITA Section 806)
c) Exceptions
1) Farmers. The requirement to make payments
of estimated tax expressly excludes farmers from its application. (See IITA
Section 803(a).)
2) Nursing Homes.
No estimated tax payments are required by an individual who is 65 years of age
or older and is a permanent resident of a nursing home. (IITA Section
806)
3) Reasonable Expectation that
the Threshold Requirement for Payment of Estimated Tax Will Not Be Met. In any
case in which the amount payable as estimated tax for a taxable year exceeds
$500 for an individual ($250 for taxable years ending on or before December 31,
2001) or $400 for a corporation, the taxpayer shall be required to pay
estimated tax unless it can show, by clear and convincing evidence, that its
basis for expecting to owe a smaller amount was reasonable. A reasonable
expectation at the beginning of the taxable year does not exempt the taxpayer
from the obligation to make estimated tax payments if circumstances change
during the year. A taxpayer may have reasonable cause for failing to make an
estimated payment early in the taxable year and not have reasonable cause for
failure to make estimated payments later in the same taxable year, after
circumstances have changed.
d) Due Dates for Payment of Estimated Tax.
Installments of estimated tax shall be paid on or before the dates prescribed
under Section
100.8010.
The payment of any installment may be made in advance of the applicable due
date. Payments of estimated tax shall be applied as set forth under Section
100.8010
and 86 Ill. Adm. Code
700.500.
e) Joint Payment of Estimated Tax. If they
are eligible to do so for federal tax purposes, a husband and wife may pay
estimated tax as if they were one taxpayer, in which case the liability with
respect to the estimated tax shall be joint and several. If a joint payment is
made but the husband and wife elect to determine their taxes under the IITA
separately, the estimated tax for such year may be treated as the estimated tax
of either husband or wife, or may be divided between them, as they may elect.
(IITA Section 803(c))
1) The Department will
accept any allocation between spouses of joint estimated payments made by them,
provided only that the total of the amounts so allocated equals the total
amount paid. In the absence of proof of an agreed allocation between the
spouses, the joint estimated tax payments shall be allocated between the
husband and wife in accordance with this subsection (e)(1). The portion of
those payments to be allocated to a spouse shall be that portion of the
aggregate of all those payments that bears the same ratio to the whole of the
tax that the amount of tax (as defined under Section
100.8010(b)(2)
) shown on the separate return of the taxpayer bears to the sum of the tax
shown on the separate returns of the spouses.
2) When one of the spouses dies during the
taxable year and joint estimated tax payments were made, but a joint return is
not subsequently filed, estimated tax payments (including any joint payments
made after the death of the spouse) may be divided between the decedent and the
surviving spouse in the proportion to which the surviving spouse and the legal
representative of the decedent may agree. The Department will accept any
allocation between the surviving spouse and the decedent, provided only that
the total of the amounts so allocated equals the total amount paid. In the
event the surviving spouse and legal representative fail to agree, the
estimated tax shall be allocated between the surviving spouse and decedent in
the same manner as the estimated tax of husband and wife who fail to agree to
an allocation of estimated tax to separate returns in accordance with
subsection (e)(1).
3) The exemption
from payment of estimated tax for farmers under IITA Section 803(a) and
subsection (c)(1) of this Section shall apply to a couple filing a joint return
only if 2/3 of the total gross income of the couple is from farming.
4) No estimated tax payment is required by a
couple filing a joint return if either spouse is 65 years of age or older and a
permanent resident of a nursing home, and therefore is exempt from payment of
estimated tax under IITA Section 806 and subsection (c)(2) of this
Section.
f) Cross
References. For payment of estimated tax by electronic funds transfer, see 86
Ill. Adm. Code 750.
