Jan
10

Illinois Workers to get Tax Relief

January 10, 2012

Chicago Real Estate Forum just wrote about Illinois owning the worst credit rating in the nation.

Despite our state’s financial woes, Governor Pat Quinn signed legislation on Tuesday that will help working families keep more of their hard-earned money.

Senate Bill 400 doubles the state’s Earned Income Tax Credit (EITC) over two years, which will save low-income Illinois workers an extra $105 million per year.

The new law increases the state’s EITC from its current level of 5 percent to 7.5 percent in tax year 2012 and 10 percent in tax year 2013.

According to Quinn’s office, that means a single mother earning minimum wage of $12,800 a year with one child will save $154 on her taxes this year. A married couple earning $30,000 a year with three children will save $199 on their taxes.

It is estimated that for every dollar a family saves through tax credit results in $1.58 spent on the local economy.

“One of the best ways to stimulate the local economy is to put more money in the pockets of working families,” said Governor Quinn.

“This law is a win for workers, a win for families and a win for employers that will support job growth across Illinois for years to come.”

The new law also increases the standard personal exemption for all individual Illinois taxpayers in 2012 by $50 to $2,050. The value of the exemption will be adjusted in each subsequent year according to the cost of living.

”The tax relief contained in Senate Bill 400 will benefit every person who files a tax return in Illinois,” said Sen. Toi Hutchinson (D-Olympia Fields), a co-sponsor of the bill.

“Working families for too long have had to deal with increasing expenses and stagnant wages. This legislation is an opportunity to provide meaningful tax relief.”

The not-for-profit Center for Economic Progress estimates that between 10 and 20 percent of eligible taxpayers did not file for EITC last year. To benefit from Illinois’ EITC, taxpayers must include it on their tax returns.

The Illinois Department of Human Services (DHS) and the CEP Tax Counseling Project are providing tax preparation assistance at centers across the state for Illinois residents. The services are free to families making less than $50,000 a year and to individuals with annual incomes under $25,000.

For more information, contact the Center for Economic Progress in Chicago at 312-630-0273 or the toll-free statewide number at 888-827-8511. For information on the Tax Assistance Program call 312-409-1555 or 312-409-4318 (Spanish).

Details are also available on the IDHS website at dhs.state.il.us and the Department of Revenue website at revenue.state.il.us.

Categories: Economy, Featured

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