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What Withholding Income Tax changes took effect January 1, 2018?

Answer #923 -- ( Published 08/05/2005 11:09 AM | Updated 03/30/2018 8:09 AM )

What Withholding Income Tax changes took effect January 1, 2018?

  • Public Act 100-303 provides new electronic filing requirements for Illinois withholding income tax. Effective January 1, 2018, Form IL-941 is now required to be filed electronically. If you are unable to file electronically, you may request a waiver by submitting a Waiver Request form, IL-900-EW. You may contact our Taxpayer Assistance Division at 1 800 732-8866 or 217 782-3336 to request an IL-900-EW.
  • Form IL-941 (and instructions) and Form IL-941-X (and instructions) have been updated.
    • Form IL-941-X has been updated to a two-page form. The Overpayment Worksheet has been removed.
    • Schedule P, a new attachment for Form IL-941-X, has been developed to assist taxpayers with layout and attaching their payroll support.
  • The Illinois Income Tax rate for individuals increased to 4.95 percent (.0495) effective July 1, 2017.
  • The Illinois Individual Income Tax personal exemption amount decreased to $2,000 due to the sunset provision of the cost of living adjustment. For more detailed information, and for assistance with calculating the correct amount to withhold, see the updated Booklet IL-700-T on our website.
  • W-2 and W-2G forms are due by January 31, 2018 and are required to be submitted electronically. See the W-2 and 1099 Electronic Filing Programs page on our website or Informational Bulletin FY 2018-18 for more information.
  • Due to the addition of Illinois Department of Employment Security (IDES) unemployment tax to MyTax Illinois, TaxNet is no longer available for filing or paying Illinois withholding income tax.
  • The Economic Development for a Growing Economy (EDGE) Tax Credit has been extended to June 30, 2022.
  • The Department is encouraging taxpayers to use their IDOR-approved credits during the 1st quarter of 2018. Based upon fund availability, the Department plans to issue refunds in June 2018 to taxpayers that have remaining IDOR-approved credits on their Illinois withholding account.
  • Reminder: If you have been assigned to the monthly payment schedule and you withhold more than $12,000 during a quarter, you must begin paying semi-weekly in the following quarter, the remainder of the year, and the subsequent year.

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