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New Illinois Tax Hikes Effective July 1, 2017

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Time to Review Your Tax Situation?

Effective July 1, 2017, Illinois lawmakers substantially changed the state tax laws for individuals and corporations highlighted as follows:

Personal Income Taxes:

  • Personal income tax rates are raised from 3.75 percent to 4.95 percent.
  • Beginning January 1, 2017, married filling joint taxpayers with an adjusted gross income (AGI) exceeding $500,000 and all other taxpayers with an AGI of $250,000 are no longer eligible for the additional personal exemption for age 65 or older, or blind.  Additionally, these taxpayers are no longer eligible for a residential real property tax credit.
  • Please contact us for more information.

Corporate Income Taxes:

  • Corporate income tax rates are raised from 5.25 percent to 7 percent
  • The research-and-development tax credit is reinstated.
  • Please contact us for more information.

Tax Planning Considerations:

  • Now may also be the time to consider establishing residency in a more tax friendly and financially stable state such as Arizona, Florida, Nevada, Texas and Wyoming to name a few. We can assist with residency and domicile planning.
  • The safe harbor Illinois estimate payment legislation remains in place. So, timely Illinois withholding, or estimated tax payment, of 100% of the prior year (2016) Illinois tax liability generally avoids late payment penalties. Each taxpayers situation should be reviewed. We can assist.

If you, your company, a family member, a friend or a client desire tax advice, tax return preparation or residency planning services, please call us at 847-382-9130 or email us at attorneys@kelleherbuckley.com  to speak with one of our tax attorneys.

We also appreciate your referrals.

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