"Tying the personal exemption to inflation will hopefully be the first step of many in providing
some progressivity to our income tax code." - State Senator Toi Hutchinson

SPRINGFIELD, IL – Just over a year ago, legislation increasing both the Earned Income Tax Credit (EITC) and the personal exemption, both utilized by working families, was signed into law by the governor.

“Working families will see an increase in both the EITC and the personal exemption when filing their state tax forms this year,” State Senator Toi Hutchinson (D – Chicago Heights) said. “While the increase is modest, it is vitally important for thousands of Illinois families struggling with increases in living expenses.”

Hutchinson was the lead sponsor of Senate Bill 400, passed by the General Assembly and signed into law by the governor last January, which raised the EITC from 5% to 10% in 2013, providing the first increase since its inception in 2000. The EITC primarily targets working families with children. According to the Voice for Illinois Children, more than 935,000 working families benefit from the EITC.

Also included in the measure was an increase to the personal exemption, claimed by every taxpayer in Illinois. The personal exemption was raised from $2,000 to $2,050. More importantly, this exemption will increase yearly based on the Consumer Price Index, providing the opportunity for significant savings in the long-term.

“Tying the personal exemption to inflation will hopefully be the first step of many in providing some progressivity to our income tax code,” Hutchinson continued.

 

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