Illinois Family Relief Plan to begin July 1

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Published: Jun. 30, 2022 at 10:34 AM CDT
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CHICAGO (WGEM) - Beginning Friday, the Illinois Family Relief Plan will go into effect to provide relief on the grocery tax, gas tax and property taxes.

According to the governor’s office, the plan totals an estimated $1.83 billion in relief, including income and property tax rebates and a temporary cut in several sales taxes.

“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 Gov JB Pritzker. “We are sending $1.8 billion in tax relief to Illinois families- and we are doing that because Democrats balanced the budget, eliminated the bill backlog, and the state government is now running a surplus. 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.”

According to a statement, the plan permanently expands the state-earned income credit from 18% to 20% of the federal credit while expanding the number of households covered, putting an additional $100 million per year back into the pockets of working families who need it the most.

“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. Gov 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 State of Illinois is also providing property tax rebates for eligible homeowners equal to the property tax credit they qualified for on their 2021 Illinois tax returns, up to a maximum of $300.

The rebate is not allowed if a taxpayer’s adjusted gross income for the taxable year exceeds $500,000 for returns with a federal filing status of married filing jointly or $250,000 for all other returns.

Additionally, individuals who made less than $200,000 in 2021 will receive $50 income tax rebates.

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.

Income and property tax rebates will automatically be issued to all the estimated 6.2 million taxpayers. They qualify under the Family Relief Plan based on their submitted 2021 tax return information.

Comptroller Susanna Mendoza will issue the rebates and expects to begin to cut checks the week of Sep 12. Distribution will take roughly eight weeks after the rollout begins.

Taxpayers who did not file their 2021 IL-1040 individual income tax returns but want to claim the personal income tax rebate, both the property tax and individual income tax rebates, or solely claim the property tax rebate can do so. The Department of Revenue will provide an online submission form via the website listed below.

Rebates will be sent automatically using the same method original refunds were transmitted if they were sent directly to the taxpayer by the State of Illinois.

The individual rebate would be deposited directly into a taxpayer’s account if a direct deposit was used. If no refund or a paper refund was issued, the rebate will be mailed to the address on file.

Taxpayers who did not receive a refund directly from the State of Illinois, such as those who received an advance of their refund from their tax preparer, will receive a paper rebate check mailed to the address on file.

“The Illinois Family Relief Plan helps ease inflationary pressures felt by families across this state at a time they need it most,” said House Speaker Emanuel C Welch. “Because of consistent, responsible budgeting by Democrats, we’re able to cut taxes on everyday necessities like groceries and freeze taxes on gas while also providing much-needed property tax rebates. We know people are struggling and I’m grateful we’re able to put money back into the pockets of hardworking Illinoisans.”

The Family Relief Plan includes several tax holidays, meaning a temporary cut in taxes, including:

  • Groceries: The state’s 1% sales tax on groceries will be suspended from July 1 through June 30, 2023, saving consumers $400 million.
  • Gas: The state’s normally scheduled increase in the motor fuel tax will be delayed from July 1 to January 2023, saving consumers $70 million.
  • School supplies: Sales taxes for qualified clothing and school-related items will be reduced from 6.25% to 1.25% for a 10-day window from August 5 to 14, saving consumers $50 million. Items include qualifying clothing and footwear with a retail selling price of less than $125 per item. Eligible school supplies are not subject to the $125 threshold.

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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