Illinois family relief plan to begin July 1

Posted on Jun 30, 2022 10:44 a.m.

Last updated on June 30, 2022 10:54

Illinois Family Relief Plan

Beginning July 1, the Illinois Family Relief Plan will take effect to provide relief from food tax, gasoline tax and property taxes. The plan totals an estimated $1.83 billion in relief, including income and property tax refunds and a temporary reduction of 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 taking effect next year. next,” Governor JB Pritzker said. “We’re sending $1.8 billion in tax relief to Illinois families.”

The Family Assistance Plan includes several tax exemptions, i.e. a temporary reduction in taxes, including:

Races: The state’s 1% grocery sales tax will be suspended July 1 through June 30, 2023, saving consumers $400 million.

Gas: The state’s normally scheduled fuel tax increase will be delayed from July 1 to January 2023, saving consumers $70 million.

School supplies: Sales taxes on qualifying clothing and school supplies will be reduced from 6.25% to 1.25% for a 10-day period from August 5 to 14, saving consumers $50 million. Items include qualifying apparel and footwear with a retail price of less than $125 per item. Eligible school supplies are not subject to the $125 threshold.

In addition, the plan permanently expands the state’s earned income credit from 18% to 20% of the federal credit, while increasing the number of households covered, putting an additional $100 million a year back into families’ pockets. workers who need it most. .

The State of Illinois is also offering property tax refunds to eligible homeowners in an amount equal to the property tax credit they are entitled to on their 2021 Illinois tax returns, up to a maximum of $300. The refund is not permitted if a taxpayer’s adjusted gross income for the tax year exceeds $500,000 for returns with joint filing federal filing status, or $250,000 for all other returns. Additionally, people who earned less than $200,000 in 2021 will receive income tax refunds of $50. Couples filing jointly with incomes below $400,000 will receive $100. Filers will also receive $100 per dependent they claimed on their 2021 taxes, up to three dependents. Income and property tax refunds will be automatically granted to all estimated 6.2 million taxpayers who qualify under the Family Assistance Plan based on information included in their submitted 2021 tax returns .

Comptroller Susana Mendoza will issue the discounts and plans to start reducing checks the week of September 12. Distribution will take approximately eight weeks after the rollout begins.

Taxpayers who have not filed their IL-1040 2021 Personal Income Tax Return but wish to claim personal income tax refunds, both property tax refunds and income tax refunds personal income, or claim only the property tax refund, can do so. Refunds will be sent automatically using the same method the original refunds were submitted if they were sent directly to the taxpayer by the State of Illinois. If direct deposit was used, the individual refund will be deposited directly into the taxpayer’s account. If there was no refund or a paper refund was issued, the refund 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 on their refund from their tax preparer, will receive a paper refund check mailed at the address indicated on file.