HB1898 creates an income tax deduction for gratuities included in federal adjusted gross income.
HB1898 amends the Illinois Income Tax Act to introduce a tax deduction for gratuities included in the taxpayer's federal adjusted gross income. This deduction applies to taxable years beginning on or after January 1, 2026. The bill specifies that the deduction is limited to the amount of gratuities included in the federal adjusted gross income. The provisions of this deduction are exempt from certain sections of the Act. The bill takes effect immediately upon becoming law.
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