Senator Craig Wilcox’s Capitol Report

Senator Wilcox Files “No Tax on Tips” Legislation in Illinois Senate

Illinois workers who rely on tips could soon qualify for a dollar-for-dollar tax deduction on the gratuities collected through legislation I authored this year.

When customers enjoy their experience at a restaurant or other service-oriented business, the tip is a gesture of appreciation for a job well-done. It is not part of an individual’s base salary and therefore should not be treated as taxable income.

Through my Senate Bill 140, tipped workers would be able to receive an Illinois income tax deduction for gratuities that are included in their federal adjusted gross income. The deduction would match the amount of tips earned 100%. Workers would still have to list the amount of tips received on their tax return, but the tips would be exempt from Illinois’ 4.95% income tax.

President Trump has expressed interest in removing taxes on tips, and some states are also taking steps to put ‘no tax on tips’ policies on the books. SB 140 is pro-worker, pro-small business, and pro-taxpayer.

Additionally, this legislation would go far in addressing the significant labor shortage in the restaurant industry because it would increase interest in tipped work by potential employees by allowing tipped workers to keep more of their money.

The National Restaurant Association announced its support of “no tax on tips” policies in August of 2024.

Just One and a Half Weeks Remaining in Valentines for Seniors Program

The February 7 deadline for participation in my 5th annual “Valentines for Seniors” card drive is quickly approaching. We have received some really cute cards and drawings, but we need more submissions if we are to match last year’s numbers. Won’t you help put a smile on the face of a local senior?

Cards and drawings can be mailed to or dropped off at my Woodstock office between now and February 7. My office staff and I will personally deliver the cards and drawings on your behalf the week of Valentines Day.

Valentines can be dropped off between 8:30 AM and 4:00 PM Monday through Friday, or mailed to:

Senator Wilcox’s Legislative Office
209 N. Benton Street
Woodstock, IL  60098

If you are interested in participating or have any questions, don’t hesitate to get in touch with Kim at kjohnson@sgop.ilga.gov.

Senator Wilcox Champions Legislation to Provide Financial Relief to Illinois Job Creators

This year I am sponsoring legislation (Senate Bill 137) that would provide much-needed financial relief to the small businesses that employ millions of Illinoisans and drive the state’s economy.

Every retailer in Illinois, whether it is a Walmart, Walgreens, or Costco, or a small mom and pop boutique or corner ice cream shop, must collect, track, and remit sales tax to the State of Illinois. The system used for this process is costly, and where a Walmart can spread that burden out over an extremely large base of operations, this legislation acknowledges and addresses the fact that for small businesses, this tracking and remitting system represents a much larger percentage of their base annual costs.

Currently, as businesses collect and remit sales tax to the state, they are allowed to keep 1.75% of the tax revenue collected through a “retailer’s discount”. Through SB 137, the retailer’s discount for those with less than $50,000 per month in sales revenue would double to 3.5%.

Sponsoring policy proposals that recognize and assist small businesses that provide important jobs in Illinois communities has always been a priority for me. By providing small retailers with this level of financial relief, we are helping these job creators grow and thrive in Illinois, In a state that routinely over-regulates and nickels and dimes the business community, SB 137 would provide much-needed relief. It also signals a showing of support for this vital sector of the Illinois economy. 

Get Connected: Participate in a Broadband Breakthrough Program

Local leaders across Illinois are encouraged to participate in the Broadband Breakthrough program led by the Benton Institute for Broadband & Society and the Illinois Broadband Lab. This initiative provides the tools, data, and knowledge needed to secure funding and build strong broadband partnerships. As the state prepares for the BEAD-Funded Connect Illinois Round 4, the program boosts counties’ ability to become strategic and supportive partners in broadband expansion efforts.

Applications for the Broadband Breakthrough program are open until January 31, on a first-come, first-served basis. The Illinois Office of Broadband is offering a series of webinars covering topics such as data-driven storytelling, digital literacy, and digital equity. These resources aim to assist in securing funding and promoting digital equity across the state.

For more information and to register for webinars, contact Reid Sharkey at reid@benton.org or visit the Illinois Office of Broadband’s website. View previous webinars here.

Kickstart 2025 Taxes Today

 The Illinois Department of Revenue (IDOR) will begin accepting 2025 income tax returns on January 27, coinciding with the IRS’s start date for federal tax filings. This year, eligible taxpayers can file their federal returns for free using the IRS Direct File program, which will then link to Illinois’ MyTax Illinois system to file state taxes at no cost.

Expertsencourage taxpayers to file early and choose direct deposit for faster refunds. Filing electronically and opting for direct deposit ensures the quickest processing. The tax deadline is April 15, with a six-month extension option available.

Additionally, taxpayers can apply for the Illinois Child Tax Credit, which increases to 40% of the Earned Income Tax Credit (EITC) for 2025. The Volunteer Emergency Worker Credit has also been expanded to include more emergency service volunteers.

IDOR continues to combat fraud, preventing over $145 million in fraudulent refunds last year.

Taxpayers can receive assistance by calling IDOR’s helpline at 1-800-732-8866 or visiting tax.illinois.gov.

Craig Wilcox

Want to stay up to date with Senator Wilcox?

Sign up for his E-Newsletter below:

[wpnbf-signup]