North Egypt News

The Illinois Department of Revenue (IDOR) will begin issuing refunds to eligible taxpayers who filed their 2020 Illinois Income Tax Return before the newly enacted federal unemployment tax exemption.

"The Federal American Rescue Plan Act of 2021 includes a retroactive provision making the first $10,200 per taxpayer (or up to $20,400 married, filing jointly) of 2020 unemployment benefits nontaxable for returns with a modified Adjusted Gross Income (AGI) of less than $150,000," Sen. Terri Bryant (R-Murphysboro) wrote in a May 17 Facebook post, linking to additional information. "This means Illinois taxpayers who received unemployment benefits in 2020 may be eligible for a tax refund from the State of Illinois based on the exclusion of the $10,200."

According to a release from the state about the policy, Illinois tax filers who claimed the Illinois Earned Income Credit (EIC) might also be eligible for an additional refund. 

The Revenue Department will also notify 3,300 paper filers who filed before the federal unemployment exclusion about needing to file an amended return to qualify for any refund due.  

Taxpayers who filed electronically, on or after March 15, and included the unemployment exclusion on federal and state individual income tax returns, no additional filing changes are required, the release said. An amended return must be filed to adjust their AGI for those who did not mark unemployment exclusion.