Tax Breaks & Tax Rebates - Illinois Family Relief Plan to Begin July 1

Beginning July 1st, the Illinois Family Relief Plan will go into effect, making good on the promise by Governor Pritzker and the General Assembly to provide relief on the grocery tax, gas tax, and property taxes. The plan totals an estimated $1.83 billion in relief, including income and property tax rebates and a temporary cut in several sales taxes.

See the full News Release HERE on Illinois.gov.

Property Tax Rebates

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

This is the amount from your 2021 IL personal return, Schedule ICR, Illinois Property Tax Credit, the 5% credit based on the amount of real estate taxes that were paid for your principal residence.

• 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.

Income Tax Rebates

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 be automatically issued to all the estimated 6.2 million taxpayers who qualify under the Family Relief Plan based on information included in their submitted 2021 tax returns. The rebates will be paid by the Illinois Comptroller, expected to begin sending out the week of September 12. Distribution will take roughly eight weeks after the rollout begins.

Sales Tax Holidays/Cuts

Groceries:

• The state's 1% sales tax on groceries will be suspended July 1 through June 30, 2023

Gas:

• The state's normally scheduled increase in the motor fuel tax will be delayed from July 1 to January 2023

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.

How Will Rebates Be Paid to Taxpayers?

• 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
• Direct deposit will be used for those who had banking information used when they filed their 2021 return
• If there was no refund or a paper refund was issued – the rebates will be sent by CHECK to the latest address on file – NOTE:  if you MOVED after you filed your 2021 tax return, you should update your address with the state of Illinois to ensure you will get your rebates, if you qualify. Most mail from IDOR is NOT forwarded, even if you have a forwarding address.

Instructions for updating a 1040 address: IDOR updating address