Many Illinois residents will begin receiving a “fourth” stimulus payment in the coming weeks. The Illinois Family Relief Plan grants taxpayers and families rebate checks that started going out on September 12. This bill also temporarily reduces the cost of living through several tax pauses, which we will review below.
What is the Family Relief Plan?
Placed into effect on July 1, 2022, the Illinois Family Relief Plan placed a pause on the 1% grocery sales tax until Jun 2023. In addition, you may have seen signage at your local gas station that the 2-cent gas tax increase has been paused by Governor Pritzker through January. This signage is a required part of the bill. All gas stations are being required to tell Illinois residents that Governor Pritzker reduced the gas tax by $.02 a gallon.
The final portion of the Illinois Relief Act is the rebate checks that are being sent out now. Subject to income limitations, taxpayers are eligible for a $50 per filer ($100 for Married Couples), as well as $100 for each dependent claimed (maximum 3 dependents). Finally, property tax credits are being given for homeowners, up to $300.
What is not in the Family Relief Plan?
Many gas station owners have not appreciated the fact that they are being forced to publicly promote Governor Pritzker with required stickers advertising the 2.2 cent per gallon tax cut. They are staying in compliance with the law by reminding Illinoisans that Governor Pritzker doubled the gas tax from 19 cents per gallon to 38 cents per gallon when he took office. And they are pointing out that he is now taking credit for “not” instituting his automatic 2.2 cent per gallon tax increase, by holding the increase off until January of 2023.
This is like the grade school bully who demanded a thank you because he felt bad and offered one M&M to you after he stole the entire bag of M&Ms from your lunch box. And it is true. Governor Pritzker did double the gas tax when he took office. This obvious to anyone who travels across state lines to observe that gas is 30-40 cents per gallon cheaper in surrounding states.
Who is Eligible for the Rebate Checks?
Single filers who made less than $200,000 in 2021 will be eligible for a rebate check. Married filers must have made less than $400,000 to be eligible for their rebates.
Single filers who made less than $250,000 in 2021 and married filing jointly couples with income below $500,000 will qualify for the property tax rebate.
If you haven’t filed your 2021 return but would be eligible for the rebate checks, you have until October 17th to file your 2021 and be eligible.
How is the Property Tax Rebate Calculated?
Illinois residents that paid Illinois property taxes during 2021 are eligible for a rebate of up to $300. The rebate received will rely on the amount of property taxes reported on Form IL-1040 and Schedule ICR. If you did not report taxes on your return or Schedule ICR, see below for next steps.
When Will I Receive the Rebate?
Some Illinois residents reported payments as early as last week. Over the next 9-10 weeks, all taxpayers should receive their checks.
You can double check your rebate status by using the “Where’s My Rebate?” tool on the MyTax Illinois website.
How Will I Receive My Rebate?
If you are eligible for a rebate and received a refund on your 2021 return, your rebate check will be sent in the same manner as your return.
If you did not receive a refund, Illinois will be sending a physical check to the address on your return. Income tax and Property tax rebate checks will be consolidated into one check.
Do I Have to Pay Taxes on this Money?
For most filers, this income will be tax free. However, if you itemized deductions on your federal tax return, the rebates will reduce the state tax deductions you will be eligible to take on your 2022 tax return.
What if I Didn’t File a Tax Return or Claim Property Taxes?
To receive the rebate checks, taxpayers must file an Illinois tax return, even if they haven’t normally been required to.
If you did not claim property taxes on your tax return, you can complete form IL 1040-PTR to be eligible. Once filling out the form, you have until October 17th to mail into the IL Department of Revenue or submit electronically through MyTaxIllinois.
What if I miss the Deadline to File a Return or Rebate?
Taxpayers must file an Illinois tax return to receive the rebate checks.
There are only a few weeks to ensure that you receive rebate money. If you have questions or concerns about these checks, please schedule a call below.
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