2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 5/ - Illinois Income Tax Act. › Article 8 - Declaration And Payment Of Estimated Tax

(35 ILCS 5/Art. 8 heading)
ARTICLE 8.  
		DECLARATION AND PAYMENT OF ESTIMATED TAX.
(35 ILCS 5/803) (from Ch. 120, par. 8-803)
Sec. 803. Payment of estimated tax.
(a) Every taxpayer other than an
estate, trust, partnership, Subchapter S corporation or farmer is required
to pay estimated tax for the taxable year, in such amount and with such
forms as the Department shall prescribe, if the amount payable as estimated
tax can reasonably be expected to be more than (i) $250 for taxable years
ending before December 31, 2001, $500 for taxable years ending on or
after December 31, 2001 and before December 31, 2019, and $1,000 for taxable years ending on or after December 31, 2019, or (ii) $400 for
corporations.
(b) Estimated tax defined.  The term "estimated tax" means the excess of:
(1) The amount which the taxpayer estimates to be his     tax under this Act for the taxable year, over
(2) The amount which he estimates to be the sum of     any amounts to be withheld on account of or credited against such tax.
(c) Joint payment.  If they are eligible to do so for federal tax
purposes, a husband and wife may pay estimated tax as if they were one
taxpayer, in which case the liability with respect to the estimated tax
shall be joint and several.  If a joint payment is made but the husband and
wife elect to determine their taxes under this Act separately, the
estimated tax for such year may be treated as the estimated tax of either
husband or wife, or may be divided between them, as they may elect.
(d) There shall be paid 4 equal installments of estimated tax for
each taxable year, payable as follows:
Required Installment:
Due Date:
1st
April 15
2nd
June 15
3rd
September 15
4th
Individuals: January 15 of the
following taxable year
Corporations: December 15
(e) Farmers.  An individual, having gross income from farming for the
taxable year which is at least 2/3 of his total estimated gross income for such year.
(f) Application to short taxable years. The application of this
section to taxable years of less than 12 months shall be in accordance with
regulations prescribed by the Department.
(g) Fiscal years. In the application of this section to the case of a
taxable year beginning on any date other than January 1, there shall be
substituted, for the months specified in subsections (d) and
(e), the
months which correspond thereto.
(h) Installments paid in advance. Any installment of estimated
tax may be paid before the date prescribed for its payment.
The changes in this Section made by this amendatory Act of 1985 shall
apply to taxable years ending on or after January 1, 1986.
(Source: P.A. 101-355, eff. 8-9-19.)
(35 ILCS 5/804) (from Ch. 120, par. 8-804)
Sec. 804. Failure to pay estimated tax.
(a) In general. In case of any underpayment of estimated tax by a
taxpayer, except as provided in subsection (d) or (e), the taxpayer shall
be liable to a penalty in an amount determined at the rate prescribed by
Section 3-3 of the Uniform Penalty and Interest Act upon the amount of the
underpayment (determined under subsection (b)) for each required installment.
(b) Amount of underpayment. For purposes of subsection (a), the
amount of the underpayment shall be the excess of:
(1) the amount of the installment which would be     required to be paid under subsection (c), over
(2) the amount, if any, of the installment paid on or     before the last date prescribed for payment.
(c) Amount of Required Installments.
(1) Amount.
(A) In General.  Except as provided in paragraphs         (2) and (3), the amount of any required installment shall be 25% of the required annual payment.
(B) Required Annual Payment.  For purposes of         subparagraph (A), the term "required annual payment" means the lesser of:
(i) 90% of the tax shown on the return for             the taxable year, or if no return is filed, 90% of the tax for such year;
(ii) for installments due prior to February             1, 2011, and after January 31, 2012, 100% of the tax shown on the return of the taxpayer for the preceding taxable year if a return showing a liability for tax was filed by the taxpayer for the preceding taxable year and such preceding year was a taxable year of 12 months; or
(iii) for installments due after January 31,             2011, and prior to February 1, 2012, 150% of the tax shown on the return of the taxpayer for the preceding taxable year if a return showing a liability for tax was filed by the taxpayer for the preceding taxable year and such preceding year was a taxable year of 12 months.
(2) Lower Required Installment where Annualized     Income Installment is Less Than Amount Determined Under Paragraph (1).
(A) In General.  In the case of any required         installment if a taxpayer establishes that the annualized income installment is less than the amount determined under paragraph (1),
(i) the amount of such required installment             shall be the annualized income installment, and
(ii) any reduction in a required installment             resulting from the application of this subparagraph shall be recaptured by increasing the amount of the next required installment determined under paragraph (1) by the amount of such reduction, and by increasing subsequent required installments to the extent that the reduction has not previously been recaptured under this clause.
(B) Determination of Annualized Income         Installment.  In the case of any required installment, the annualized income installment is the excess, if any, of:
(i) an amount equal to the applicable             percentage of the tax for the taxable year computed by placing on an annualized basis the net income for months in the taxable year ending before the due date for the installment, over
(ii) the aggregate amount of any prior             required installments for the taxable year.
(C) Applicable Percentage.
In the case of the following
The applicable
required installments:
percentage is:
1st ....................
22.5%
2nd ....................
45%
3rd ....................
67.5%
4th ....................
90%
(D) Annualized Net Income; Individuals.  For         individuals, net income shall be placed on an annualized basis by:
(i) multiplying by 12, or in the case of a             taxable year of less than 12 months, by the number of months in the taxable year, the net income computed without regard to the standard exemption for the months in the taxable year ending before the month in which the installment is required to be paid;
(ii) dividing the resulting amount by the             number of months in the taxable year ending before the month in which such installment date falls; and
(iii) deducting from such amount the standard             exemption allowable for the taxable year, such standard exemption being determined as of the last date prescribed for payment of the installment.
(E) Annualized Net Income; Corporations.  For         corporations, net income shall be placed on an annualized basis by multiplying by 12 the taxable income
(i) for the first 3 months of the taxable             year, in the case of the installment required to be paid in the 4th month,
(ii) for the first 3 months or for the first             5 months of the taxable year, in the case of the installment required to be paid in the 6th month,
(iii) for the first 6 months or for the first             8 months of the taxable year, in the case of the installment required to be paid in the 9th month, and
(iv) for the first 9 months or for the first             11 months of the taxable year, in the case of the installment required to be paid in the 12th month of the taxable year,
then dividing the resulting amount by the number of         months in the taxable year (3, 5, 6, 8, 9, or 11 as the case may be).
(3) Notwithstanding any other provision of this     subsection (c), in the case of a federally regulated exchange that elects to apportion its income under Section 304(c-1) of this Act, the amount of each required installment due prior to June 30 of the first taxable year to which the election applies shall be 25% of the tax that would have been shown on the return for that taxable year if the taxpayer had not made such election.
(d) Exceptions. Notwithstanding the provisions of the preceding
subsections, the penalty imposed by subsection (a) shall not
be imposed if the taxpayer was not required to file an Illinois income
tax return for the preceding taxable year, or, for individuals, if the
taxpayer had no tax liability for the preceding taxable year and such year
was a taxable year of 12 months.
The penalty imposed by subsection (a) shall
also not be imposed on any underpayments of estimated tax due before the
effective date of this amendatory Act of 1998 which underpayments are solely
attributable to the change in apportionment from subsection (a) to subsection
(h) of Section 304.  The provisions of this amendatory Act of 1998 apply to tax
years ending on or after December 31, 1998.
(e) The penalty imposed for underpayment of estimated tax by subsection
(a) of this Section shall not be imposed to the extent that the Director

or his or her designate determines, pursuant to Section 3-8 of the Uniform Penalty
and Interest Act that the penalty should not be imposed.
(f) Definition of tax. For purposes of subsections (b) and (c),
the term "tax" means the excess of the tax imposed under Article 2 of
this Act, over the amounts credited against such tax under Sections
601(b) (3) and (4).
(g) Application of Section in case of tax withheld under Article 7.
For purposes of applying this Section:
(1) tax withheld from compensation for the taxable     year shall be deemed a payment of estimated tax, and an equal part of such amount shall be deemed paid on each installment date for such taxable year, unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts so withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld;
(2) amounts timely paid by a partnership, Subchapter     S corporation, or trust on behalf of a partner, shareholder, or beneficiary pursuant to subsection (f) of Section 502 or Section 709.5 and claimed as a payment of estimated tax shall be deemed a payment of estimated tax made on the last day of the taxable year of the partnership, Subchapter S corporation, or trust for which the income from the withholding is made was computed; and
(3) all other amounts pursuant to Article 7 shall be     deemed a payment of estimated tax on the date the payment is made to the taxpayer of the amount from which the tax is withheld.
(g-5) Amounts withheld under the State Salary and Annuity Withholding
Act.  An individual who has amounts withheld under paragraph (10) of Section 4
of the State Salary and Annuity Withholding Act may elect to have those amounts
treated as payments of estimated tax made on the dates on which those amounts
are actually withheld.
(i) Short taxable year.  The application of this Section to
taxable years of less than 12 months shall be in accordance with
regulations prescribed by the Department.
The changes in this Section made by Public Act 84-127 shall apply to
taxable years ending on or after January 1, 1986.
(Source: P.A. 96-1496, eff. 1-13-11; 97-507, eff. 8-23-11; 97-636, eff. 6-1-12.)
(35 ILCS 5/806)
Sec. 806. Exemption from penalty. An individual taxpayer shall not be
subject to a penalty for failing to pay estimated tax as required by Section
803 if the
taxpayer is 65 years of age or older and is a permanent resident of a nursing
home.
For purposes of this Section, "nursing home" means a skilled nursing or
intermediate long term care facility that is subject to licensure by the
Illinois
Department of Public Health under the Nursing Home Care Act, the Specialized Mental Health Rehabilitation Act of 2013, the ID/DD Community Care Act, or the MC/DD Act.
(Source: P.A. 98-104, eff. 7-22-13; 99-180, eff. 7-29-15.)
(35 ILCS 5/807)
Sec. 807. EDGE payment.  A payment includes a payment provided for in subsection (g) of Section 5-15 of the Economic Development for a Growing Economy Tax Credit Act.
(Source: P.A. 96-836, eff. 12-16-09; 96-1000, eff. 7-2-10.)