Illinois State Tax

The Annual Exemption Reduction field is now available for those cases where an employee's year to date withholding is behind schedule due to the mid-year rule change. Employers can use the Annual Exemption Reduction field to specify an amount to reduce the Personal Exemption used in the formula.

The 2023 Booklet IL-700-T specifies a $200.00 reduction be used to facilitate the catch up. The system will allow a reduction up $2,425.00 but will not reduce the personal exemption beyond that value if an amount exceeding $2,425.00 is entered.