Income Tax Hike Is Retroactive To Jan. 1
CHICAGO (WBBM) – Now that Gov. Pat Quinn has signed the 66 percent Illinois income tax hike into law, you will soon see the effects in your paychecks.
The increased taxes will be deducted from Illinois workers’ paychecks in a few weeks.
As WBBM Newsradio 780’s Bernie Tafoya reports, the tax increase is retroactive to Jan. 1, so technically, we’re all about two weeks behind in paying.
LISTEN: Newsradio 780′s Bernie Tafoya Reports
But the state has figured out how to get the income tax from workers for the first two weeks of the year, since until the tax was passed, employers had not yet factored in the increase in their payroll formulas.
According to the Governor’s Office of Management and Budget, the state will get its money when you file your 2011 tax returns next year.
You will put down your income for the entire year which will include those couple of weeks in which the total tax was not withheld, and the total tax the state will say is due will either mean you will get a smaller refund or a larger tax bill.