Illinois HB1383 creates an income tax deduction for gratuities included in federal adjusted gross income.
HB1383 amends the Illinois Income Tax Act to introduce a tax deduction for gratuities, specifically tips, that are included in a taxpayer's federal adjusted gross income. This deduction applies to all taxpayers and is effective immediately upon the bill's enactment. The bill defines "gratuities" according to the Minimum Wage Law, ensuring clarity on what constitutes eligible tips for this deduction. This change aims to align state tax treatment with federal standards for tip income.
Included in complete analysis
- Overview
- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
Analyze for Free
See what it does, who it affects, and the critical issues in plain language. Free, 30 seconds.