3- Okay Land Of Lincoln, let's see if you've been missing anything on your state tax returns.
Which of the following is not a legitimate Illinois tax credit?
1- The Illinois Earned Income Tax Credit
2- The state child tax credit
3- The state sales tax credit
4- The state property tax credit
5- An educators credit for K-12 teachers who spend money on classroom supplies.
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Answers-
1- Yes, the Illinois EITC is a credit of 20% of the federal EITC, up to a certain limit. Both credits are generally intended for low-income families with children, though it is possible to qualify without children.
2- The Illinois child tax credit is brand new for 2024 and gives a tax credit of 20% (40% in 2025)of the Illinois EITC (or 4% of the Federal EITC, up to a maximum of $300. Children must be age 12 or under, which is lower than the federal age limits.
3- No there is no Illinois sales tax credit. Not only that, but Illinois residents are expected to calculate their use tax on any items bought from out of state but used in Illinois if they paid sales taxes less than 6.25% (1% for groceries and medical).
4- Yes, there is an Illinois property tax credit that is 5% of your total property taxes paid. The home must be in Illinois and must be your primary residence. The Department of Revenue occasionally sends out letters asking for proof for this credit.
5- While teachers get a $300 tax deduction on their federal form, they get a more generous tax credit of up to $500 for out of pocket classroom expenses.
The first two credits are refundable, meaning you get the money even if you owe no Illinois taxes at all. You just have to be an Illinois resident. Most other Illinois tax credits are non-refundable, meaning that they can only offset tax already due, and cannot carry over to future years.
Other non-refundable credits include an adoption credit, a volunteer emergency worker credit, a credit for taxes paid to other states, and credit for private school tuition.
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