SB0140

SB0140 creates an income tax deduction for gratuities included in federal adjusted gross income.

SB0140 amends the Illinois Income Tax Act to introduce a new tax deduction for gratuities included in a taxpayer's federal adjusted gross income. This deduction applies to all taxpayers, regardless of their participation in employer-sponsored health insurance or long-term care insurance plans. The deduction is effective immediately upon the bill's enactment. The bill specifies that the deduction is limited to the amount of gratuities included in the taxpayer's federal adjusted gross income. This amendment aims to align state tax deductions with federal tax treatment of gratuities.