SB3334 Summary

• Amends the Illinois Income Tax Act to make sports wagering winnings allocable to Illinois for tax purposes for taxable years ending on or after December 31, 2020.

• Adds sports wagering winnings conducted in accordance with the Sports Wagering Act to the list of nonbusiness income items that must be allocated to Illinois (similar to existing treatment of lottery prizes and gambling winnings).

• Requires withholding of Illinois income tax from sports wagering winnings payments made after December 31, 2020, at the individual tax rate when the payer is required to withhold under federal law (IRC Section 3402(q)).

• Provides a credit against Illinois income tax liability for any amounts withheld from sports wagering winnings.

• Takes effect immediately upon becoming law.