PEORIA, Ill. (WMBD) — With tax season around the corner, it’s a stressful time for many taxpayers.
One local state senator wants to let you know about one way you can save money.
Sen. Win Stoller (R-Germantown Hills) joined Matt Sheehan during On the Record Monday to discuss his SALT bill.
Question: What is the SALT bill and what does it mean for Illinois businesses?
“Most small businesses pay their business taxes on their personal tax return. My SALT bill shifts that business income away from that personal return, so they pay their taxes as a business,” Stoller said. “What that does, is [it] frees up all of that business income to be deductible on their federal tax return, which generates substantial tax savings for these small business employers.”
Question: You say this new tax code helps even the playing field between small employers and large corporations. How so?
“Right now, large corporations aren’t subject to that $10,000 cap on state and local deductions. This really levels the playing field, like you said,” Stoller said.
Question: What must businesses do to receive these tax cuts?
“They need to make elections to pay tax as a business. You need to tell your tax preparer to elect the PTE tax in associated credit. The PTE stands for “Passed Through Entity.” You’ll make that election on your tax forms and then benefit by getting substantial tax savings on your federal tax returns. It’s a unique opportunity, for no cost to the State of Illinois, we can save money on our federal taxes,” Sen. Stoller said.
Question: How many businesses would you say could be impacted by these tax cuts?
“This is broad applicability. Almost all small businesses are going to qualify. Over 400,000 small businesses in Illinois that can benefit from my tax bill,” Stoller said.
Question: What other legislation are you working on this spring?
“I have a bill that relates to the way hospitals are able to invest their excess investment funds. Right now they’re very limited, and they get less than a 1-2% return. This will allow them to invest in a broader range of investments that will allow them to get better market returns and save taxpayer money because they can generate their own income that way,” Stoller said.
This Friday, On the Record’s guest will be Illinois Treasurer Michael Frerichs.