Illinois Governor JB Pritzker proposes tax increases to help with budget deficit

Illinois Governor JB Pritzker proposed several new tax increases to help the state deal with a budget deficit, and one of them could affect your income tax filings.

In 2023, the state froze the standard deduction on taxes, which normally moves with inflation. Pritzker does want to increase the deduction again, but not to the level where it was supposed to be. The state would save about $93 million by keeping the deduction at a reduced level. Republicans say the move is as good as a tax increase. The level the deduction is set needs to be approved by the Legislature.

Pritzker’s proposal would affect next year’s tax filings, not this year’s, if approved.

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