What the Illinois tax relief program means for you

Starting July 1, the state will implement nearly $2B in rebates, direct payments and tax cuts.
Residents across Illinois and the U.S. have felt the squeeze of inflation this year.
Residents across Illinois and the U.S. have felt the squeeze of inflation this year.(MGN)
Published: Jun. 30, 2022 at 2:40 PM CDT
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CHICAGO, Ill. (WIFR) - Illinoisans have felt the squeeze all year as the cost of living and goods has skyrocketed. Now, Governor JB Pritzker says residents can expect some relief from newly enacted tax holidays and tax rebates.

On July 1, the Illinois Family Relief Plan takes effect in the tune of an estimated $1.8 billion. This help comes in the form of income and property tax rebates and a temporary cut in several sales taxes on essentials like groceries and fuel.

“Amid historic rates of inflation, the people of our state deserve to know that they are not on their own. We are with them,” said Lt. Governor Juliana Stratton. “This $1.8 billion in tax relief ensures that Illinoisans in every community, rural and urban, are seen and supported. When our residents are feeling the weight of buying food, gas, and making ends meet, Illinois acts to ease the burden.”

The Family Relief Plan includes several tax holidays, meaning a temporary cut in taxes, including but not limited to a year-long suspension of the state’s 1% sales tax on groceries, a six-month delay in the annual increase in motor fuel tax and a 5% tax decrease in sales tax on qualified clothing and school-related items from August 5 through August 14.

Along with the tax breaks, the plan permanently expands the state’s earned income credit from 18% to 20% of the federal credit. Rebates will be issued from the Illinois Comptroller with checks to be cut the week of September 12. Distribution will take roughly eight weeks after the rollout begins.

An estimated 6.2 million taxpayers who qualify under the Family Relief Plan will see checks based on their submitted 2021 tax returns.

“The Illinois Department of Revenue (IDOR) will certify the list of eligible taxpayers and the rebates will be issued by the Comptroller’s Office,” said IDOR Director David Harris. “Though the 2021 tax deadline was April 18, all income taxpayers who file before Oct. 17 will be eligible for rebate checks.”

Rebate amounts will vary based on qualification; if you made less than $200,000 in 2021, you will see $50 income tax rebate checks automatically issued to you. Couples filing jointly with incomes under $400,000 will receive $100. Tax filers will also receive $100 per dependent they claimed on their 2021 taxes, up to three dependents.

Property tax rebates for eligible homeowners will be issued up to $300. It is reserved for individuals who made less than $500,000 for returns with a federal filing status of married filing jointly, or $250,000 for all other returns.

“Starting tomorrow, every Illinoisan will get tax relief on essentials: groceries, gas, your home, and back-to-school supplies, with even more tax relief going into effect next year,” said Governor JB Pritzker. “In challenging times like these, it’s more important than ever to have a government whose first focus is on working families and those who are struggling, and leadership that provides new and creative ways to deliver relief when you need it most.”

For additional information, taxpayers may visit IDOR’s website at tax.illinois.gov. Taxpayer representatives can also provide assistance at 1- 800-732-8866 or 217-782-3336.

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