Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart T - AMOUNT EXEMPT FROM WITHHOLDING › Section 100.7100 - Withholding Exemption (IITA Section 702)

Current through Register Vol. 48, No. 28, July 12, 2024
a) General Rules. An employee is entitled to
				a withholding exemption equal to the basic amount under IITA Section 204 and
				Section 100.2055 of this Part multiplied by the number of withholding
				exemptions to which he or she is entitled for federal income tax withholding
				purposes plus additional exemptions in the amounts allowed under IITA Section
				204 and Section 100.2055. Since the Act does not provide for itemized
				deductions for individuals in the computation of net income, no additional
				withholding allowances based on those deductions (as provided under
				26 USC
				3402(m) ) are
				permitted.
b) Married Employees. A
				married employee may not claim a withholding exemption for any dependent (as
				defined in
				26 USC 152 )
				unless, if he or she filed a separate federal income tax return, he or she
				could claim that dependent on that separate return. He or she may claim any
				withholding exemption to which his or her spouse may be entitled (except for
				dependents) for federal withholding purposes if the spouse has not claimed that
				exemption on an Illinois withholding exemption certificate. However, a married
				employee is not entitled to claim any withholding exemption in respect of a
				spouse unless they expect to file a joint Illinois income tax return.
c) Examples. Section 100.7100(a) and (b) may
				be illustrated by the following examples:
1)
				EXAMPLE 1: A and B are married and intend to file separate federal returns. A
				and B are residents of Illinois. A, is employed and works for a company in
				State X. None of the compensation received from his employer is subject to
				Illinois withholding (see Section
				100.7010
				). B works in Illinois and her salary is subject to Illinois withholding. For
				federal withholding purposes, A claims no exemption and B claims two
				exemptions, one for herself and one for her spouse, who has not claimed a
				withholding exemption for himself on a federal withholding exemption
				certificate filed with his employer. Under IITA Section 502(c), A and B must
				file a return in Illinois on a separate basis. B may claim only one withholding
				exemption for Illinois withholding purposes (i.e., her own exemption) even
				though she is entitled to claim two exemptions for federal withholding
				purposes.
2) EXAMPLE 2: Assume the
				same facts as Example 1, except that A and B have both attained the age of 65.
				Accordingly, B claims four withholding exemptions for federal purposes.
				However, for Illinois withholding purposes B may claim only her own two
				exemptions; one exemption equal to the basic amount for herself and one
				additional $1,000 exemption for having attained the age of 65.
3) EXAMPLE 3: Assume the same facts as
				Example 1, except that A and not B claims the two exemptions on a federal
				withholding exemption certificate. B is entitled to claim one withholding
				exemption (her own) for Illinois withholding purposes. However, if A and B
				expect to file a joint federal return and accordingly a joint Illinois return,
				B may claim two withholding exemptions for Illinois withholding
				purposes.
4) EXAMPLE 4: Assume the
				same facts as Example 1, except that A has two dependents who qualify as his
				dependents under
				26 USC 152.
				Only A may claim these dependents as withholding exemptions for both federal
				and Illinois purposes.