The Illinois Family Relief Plan, implemented on July 1st, 2022, is designed to ease the financial burden of families across the state. While the plan includes tax breaks, such as removing the 1% state sales tax on groceries and suspending the 2 cent gas tax increase, it offers much more than that. It includes tax rebates and state funding to help those in need.
Residents of Illinois who qualify for the Family Relief Plan based on their 2021 tax returns will receive property and income tax rebates. Property tax rebates will be given for the amount equal to the property tax credit individuals received on their 2021 Illinois tax return, up to $300. Individuals with an AGI of less than $250,000 and married joint-filing couples with an AGI of less than $500,000 are eligible for the rebates.
Additionally, those who made less than $200,000 in 2021 will receive an income tax rebate of $50, while joint-filing couples who made less than $400,000 will receive $100. Qualifying taxpayers will also receive $100 for each dependent on their 2021 tax return, up to three dependents. The state’s earned income credit will also increase from 18% to 20% of the federal credit, providing further relief to lower-income families.
Furthermore, the bill has allocated $1 billion to the state’s Rainy Day Fund and $500 million in additional pension payments. The bill has balanced the state’s budget, raised its credit rating and increased funding for local schools, seniors, higher education, and healthcare.
The Illinois Family Relief Plan’s income and property tax rebates will be automatically issued to all who qualify, with distribution expected to take approximately eight weeks once roll-out begins.
Overall, the Illinois Family Relief Plan is aimed at helping families across the state cope with inflationary pressures and provides much-needed assistance to those in need. This plan has not only provided tax relief but also invested in various sectors to support the overall development of the state.
