By Dave Allison
The Illinois Family Relief Plan has gone into effect, which totals an estimated $1.83 billion in relief, including income and property tax rebates and a temporary cut in several sales taxes.
“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.”
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 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.
- Reducedsales 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.
Among the groups who were vocal on the state’s tax relief plan, is a national organization with local members throughout the state. The Bread for the World, a collective Christian voice is urging the nation’s decision makers to end hunger at home and abroad.
- “There are over 2.2 million people in Illinois who struggle with chronic food insecurity and the problem has reached a broader circle with rising inflation impacting all of our pocketbooks,” said Matt Gross, Director of Organizing and Faith Engagement at The Bread for the World. The state’s 1% sales tax on groceries will be suspended July 1 through June 30, 2023, saving consumers $400 million.
“Every dollar helps,” Gross, emphasized. “However, the issue is much bigger. Unless there is broader action by the federal government, we will continue to see lines growing at the food banks and food kitchens. People are still reeling from the failure of the federal government to reinstate the child tax credit. Also, there is a push to have Congress pass waivers for school feeding programs to ensure that school lunches are accessible year ‘round.
The plan also permanently expands the state’s earned income credit from 18% to 20% of the federal credit, while expanding the number of households covered.
The State of Illinois is also 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. 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 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. Comptroller Susanna Mendoza will issue the rebates and expects to begin to cut checks the week of September 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 individual 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 tax.illinois.gov.
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. If there was no refund or a paper refund was issued, the rebate will be mailed to the address on file.
“Responsible budgeting – putting $1 billion toward the Rainy-Day Fund; $500 million in additional pension payments – allows us to offer taxpayers relief when inflation threatens working families’ buying power,” Comptroller Mendoza said.
For additional information, taxpayers may visit IDOR’s website at tax.illinois.gov. Taxpayer representatives can also help at 1- 800-732-8866 or 217-782-3336.
Dallison@thetimesweekly.com – contributed to this story
