What Illinois taxpayers need to know about receiving income, property tax rebates

Patrick Keck
State Journal-Register

Whether it be for building up savings or early holiday shopping, many Illinois residents will receive extra spending money starting in September through the Illinois Family Relief Plan.

Depending on how your taxes were filed, rebates up to $300 could find their way to your pocketbooks through two separate tax rebates: the individual income tax rebate and the property tax rebate.

Why is Illinois send out tax rebates?

The Illinois Family Relief Plan became law in April following the signature of Illinois Gov. JB Pritzker and includes several provisions such as the recent school tax holiday. The plan was part of the $46.5 billion state budget, approved by a 34-19 Senate and 72-42 House vote.

More news:Gov. JB Pritzker signs $46.5B budget including rebates, checks to Illinois taxpayers

Ongoing tax holidays include the pause on the scheduled gas tax increase – in effect through January 2023 – and the suspension of the 1% sales tax on groceries continuing until June 30, 2023. Estimated tax relief through the plan according to the governor's office tops $1.8 billion.

When is Illinois sending out tax relief checks?

As early as Sept. 12, money will start being issued throughout the state and will continue over several months.

The rebates are paid automatically to taxpayers and will be distributed in the same way as the original income tax refunds. However, if a taxpayer did not receive an income tax return, the rebate will be sent via paper check to their most current address.

How much money will I receive for the Illinois tax rebate?

The amount of the rebate comes down to how the individual filed their 2021 IL-1040 for the income tax rebate and 2021 IL-1040 and Schedule ICR (Illinois Tax Credit) for the property tax rebate.

A person filing as single will receive a $50 rebate and couples will receive a $100 rebate for the individual income tax rebate. For the property tax rebate, the amount is equivalent to the property tax credit associated with the 2021 IL-1040.

The maximum for the individual income and property tax rebates is $300, with up to three dependents qualifying as a dependent for the income tax rebate.

Who is eligible for 2022 Illinois tax rebates?

There are residency and income requirements attached to the income and property tax rebates. Both require residency in the state as of 2021, with the property tax rebate requiring a 2021 payment of state property taxes on a 2020 primary residence.

Differences, however, exist in adjusted gross income standards between the two rebates. If filing jointly, $500,000 is the maximum income permitted to receive the property tax rebate while $400,000 is the limit for income tax rebates.

Single-filers can have adjusted gross incomes of $200,000 for the income and $250,000 for the property tax rebate.

How to check my status for the Illinois state tax relief?

Tracking the status of the rebates online also is also possible through filing a "Where's My Rebate?" application. The application asks for name, social security number or taxpayer identification number, and 2021 adjusted gross income.

I haven't filed my 2021 IL-1040 yet. Is it too late for me?

While rebates will be issued in the coming weeks, the deadline to submit the 2021 IL-1040 is not until Oct. 17. The forms can be submitted electronically through MyTax Illinois or through a paper form to be submitted to the Illinois Department of Revenue.