Illinois Income Tax, Affect of Governor Quinn's Tax Proposals

Illinois Governor Quinn has proposed ”a 1 percent tax surcharge for education” as part of his new budget plan outlined on March 10, 2010. That would increase the tax rate from 3% to 4% on the individual side, a 33% increase.

That 33% increase would also apply to most small and mid-sized businesses, since these companies are generally organized as proprietorships, partnerships, LLCs or "S Corporations".  That means the business income is taxed on the owners' personal returns at the individual tax rate.

Input your own circumstances and see how you would fare under Governor Quinn’s new tax proposal.

Instructions: Insert your total income and the number of exemptions you take and click the 'Calculate' button. The form will calculate roughly your new tax. Refer to footnotes below.

Your Total Income 1	$
Number of Exemptions 2

	Current Law	Proposed Law
Adjusted Gross Income 1	$	$
Exemption Deduction 2	$	$
Illinois Taxable Income	$	$
Illinois Tax	$	$
CHANGE 3: $

(1) This is generally "Adjusted Gross Income" from Form 1040, Line 37, Form 1040A, Line 21 or Form 1040EZ, Line 4
(2) Number of exemptions on your federal return;
(3) Does not reflect the benefit, if any, from the federal deduction for state taxes as a) many lower and middle income taxpayers claim the standard deduction and would receive no federal benefit, b) many middle and upper income taxpayers are subject to the alternative minimum tax (AMT) and state taxes are not deductible for AMT purposes (therefore, no federal benefit to that extent) and 3) upper income taxpayers are subject to the "phase out" of itemized deductions and receive a lesser or no federal tax benefit.