Meet the Co-chairs - TIAG
Author: Matthew T. Fuller
Effective July 1, 2017, the Illinois individual income tax rate goes from 3.75% to 4.95% and the corporate income tax rate from 7.75% to 9.50% (inclusive of the replacement tax).
Because the tax rate increased in the middle of the tax year for calendar year taxpayers, it is likely that the state will again permit taxpayers to figure their tax based on the specific accounting method. Under the specific accounting method, a taxpayer can treat their income or loss and state modifications as though they were earned in two different taxable years. For an individual, the amount earned prior to July 1, 2017, is taxed at 3.75%. The amount earned on or after July 1, 2017, is taxed at 4.95%. The two tax amounts are then added together to get the total tax liability.
Contact: Wayne Berkowitz CPA, J.D., LL.M.
There is a joke that starts with three mothers sitting around discussing the professions of their respective sons. The first mother bragged about her son the doctor and all were impressed. The second mother chimed in that her son was a lawyer and everyone smiled. The third mother sheepishly stated her son was an accountant. All shrugged and one of the mothers interjected, that's ok, he always was a little slow.