Sen. Win Stoller says his bill steers income away from the personal return of small employers and onto the business return. | Facebook
Sen. Win Stoller says his bill steers income away from the personal return of small employers and onto the business return. | Facebook
Republican state Sen. Win Stoller is doing all he can to make sure Illinois residents are aware of what he sees as the benefits of his state and local tax deduction law.
“If you’re an Illinois small business employer, you may be eligible for a new tax cut on this year’s tax filing,” Stoller recently posted on Facebook. He included a video on how Illinoisans could save "thousands of dollars.”
In the video, Stoller adds, “My SALT bill comes at a great time with all the headwinds facing our small employers these days. With inflation, labor challenges, supply chain challenges, this is just an incredible breath of fresh air. Most small employers are taxed on their personal returns - their business income is taxed on their personal returns and there is where it's subject to that $10,000 cap on the state and local tax deduction.”
Stoller says his bill steers income away from the personal return and onto the business return so that small employers can take full advantage of all that income as a deduction on their federal tax return. In the end, he adds, the move generates substantial savings on federal taxes.
Not long ago, lawmakers in Springfield passed S.B. 2531, which includes a pass-through entity (PTE) tax that allows a workaround to the federal $10,000 limitation for state and local tax (SALT) deductions. Gov. J.B. Pritzker formally signed the measure into law in August.
The Internal Revenue Service is set to begin accepting federal individual income tax returns on Jan. 24, with authorities encouraging taxpayers to file their taxes electronically and choose direct deposit as early as possible in the tax season in order to ensure the fastest processing and issuance of any refunds.
"Taxpayers may file their electronic returns for free with MyTax Illinois, our free online account management program,” Illinois Department of Revenue Director David Harris said in a press release. “Electronic filing is also available through third-party software or with most tax preparers."
If a taxpayer electronically files an error-free return, expectations are they will receive a direct deposit refund in approximately four weeks.
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