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Level 2
April 12, 2026
Question

2025 Illinois state income tax return

  • April 12, 2026
  • 1 reply
  • 12 views

My 2025 Illinois state income tax return shows "Married filing jointly" for filing status (line B) but is showing zero in the exemption section after "Step 4".  How do I fix that?

    1 reply

    jaxgabAuthor
    Level 2
    April 12, 2026

    I think I found the answer.  Grok claims there is phase out rule concerning Illinois state income tax exemptions.

     

    The Illinois state personal exemption (also called the exemption allowance) for tax year 2026 is $2,925 per person ($ 5,850 for Married Filing Jointly.

     

    Phase-out rule: You cannot claim the exemption (or it is reduced/limited) if your federal adjusted gross income (AGI) exceeds:

    • $250,000 for single, head of household, married filing separately, or widowed filers.
    • $500,000 for married filing jointly.
    DawnC
    Level 15
    April 12, 2026

    Yes, that is correct.   Here is a chart that shows the exemption allowance.  

     

    The standard personal exemption is calculated using the basic exemption amount of $2,050 plus the cost-of-living adjustment.

     

    If you (or your spouse if married filing jointly) were 65 or older and/or legally blind, the exemption allowance is an additional $1,000, whichever is applicable. (If you turned 65 at any point during the tax year, you may claim this exemption.) Please see the IL-1040 instructions for additional information. 

     

    Note: The Illinois exemption allowance is not allowed if a taxpayer’s federal adjusted gross income (AGI) exceeds $500,000 for returns with a federal filing status of married filing jointly, or $250,000 for all other returns.

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