All real estate taxpayers in Illinois have started receiving credits on taxes they have paid on their principal residence.
The Illinois Property Tax Credit is a credit on your individual income tax return equal to 5 percent of the Illinois Property Tax (real estate tax) you paid on your principal residence. You must own and reside in your residence to take this credit. For tax years beginning on or after January 1, 2017, the Illinois Property Tax Credit is not allowed if a taxpayer’s federal Adjusted Gross Income (AGI) exceeds $500,000 for returns with a federal filing status of married filing jointly or $250,000 for all other returns.
You might be one of nearly six million Illinois residents owed relief check in the form of an income or property tax rebate worth up to $700 this fall. The check distribution began earlier this month; however, it may be a while before you see yours. State Sen. Celina Villaneuva said that the “rebates are en route.”
Gov. J.B. Pritzker’s office indicated that though the check distribution started September 12, 2022, everyone would receive their checks in eight weeks.
In the meantime, the senator said recipients could check where their rebates stand online. Those who still need to submit their forms have less than a month to do so.
Here’s a breakdown of how to see if you qualify to receive a rebate and more.
Homeowners will qualify for the property tax credit if:
- your principal residence during the year preceding the tax year at issue was in Illinois, and
- you owned the residence, and
- you paid property tax on your principal residence (excluding applicable exemptions, late fees, and other charges). See below for other exclusions.
Exclusions include the following:
- If you are married and you and your spouse qualify for a property tax credit on your principal residence and are filing separate Illinois returns, you may each claim a property tax credit. However, the total credit claimed between spouses may not exceed 5 percent of the qualifying property tax.
- Illinois property you purchased – You may figure a credit for the Illinois property you purchased during 2020 providing you figure only that portion of your taxes that pertains to the time you owned and lived at the property during 2020. However, you may not take credit for the taxes you paid if the seller reimbursed you at the closing time. You also may not take a credit on your 2021 return for a property you purchased in 2021.
- Illinois property you sold – You may figure a credit for the Illinois property you sold in 2021 by combining the 2020 property tax paid in 2021, as well as a portion of the 2021 tax paid based on the time you owned and lived at the property during 2021. However, you may not take a credit on your 2021 return for the property sold during 2020.
- Nonresidents of Illinois may not take this credit.
- You may claim the property tax credit on Schedule ICR, Section A. You must enter the amount of property tax paid, the county in which your property is located, and the property number. You must enter your property number exactly as it appears on your property tax bill or assessment notice. Your property number is near the top of your property tax bill or assessment notice. You may contact your lender for your property number if your property taxes are paid through your mortgage.
Source: www2.illinois.gov
