Direct check payments and other tax breaks are part of the new budget deal for Illinois taxpayers

Who is eligible for the direct payment checks, and what are the other tax breaks?

Teemu008 from Palatine, Illinois/CC BY-SA 2.0/Wikimedia Commons/Cropped by author

(CHICAGO) Pritzker and Democratic lawmakers in Springfield announced yesterday they have come to an agreement on a $1.8 billion tax relief deal for the residents of Illinois.

Some highlights of the deal include direct checks, a freeze on the gas tax, and a suspension of grocery taxes.

According to a statement from Gov. J.B. Pritzker,

"For the past three and a half years, my partners in the General Assembly and I have worked to right this state's fiscal ship and ensure state resources are responsibly directed to government's fundamental purpose: uplifting working families. Today, leaders in both chambers have come to an agreement on yet another responsible, balanced budget that does just that. Our plan delivers more than $1.8 billion in tax relief to Illinois residents, adds $1 billion to our state's long-depleted Rainy-Day Fund, and doubles down on our efforts to make unprecedented investments in public safety."

How much will the direct payments be?

Working families will receive direct checks of $50 per adult and $100 per child (up to three children).

Who is eligible for the direct payments?

The income limits for the direct checks are $200,000 per individual and $400,000 for joint tax filers.

Other tax relief

• A six-month freeze on the motor fuel tax.
• Suspension of the grocery tax for one year. (Illinois is one of only 13 states that tax groceries.)
• The property tax rebate is to be doubled, up to $300 per household.
• A permanent expansion of the earned income tax credit.
• Back-to-school tax relief for families and teachers.

A balanced budget for 2023

According to the governor's press release, the new budget will be balanced in 2023 with the state's "largest surplus in more than two decades" due to "a strong economic recovery paired with responsible fiscal decisions."

Additional relief for needy families in Chicago

In addition to the state's tax relief deal, 5,000 low-income Chicago households will receive $500 every month for a year. It will be the nation's largest guaranteed basic income program so far.

You can check out the eligibility and frequently asked questions page on Chicago.gov for further details.

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There has been some criticism for the latest Illinois tax relief program coming out of Springfield, mainly because the tax cuts are only temporary, lasting six months to a year.

According to Chicago WTTW's Amanda Vinicky, "Much of the relief will hit around the time that voters will be casting their ballots in the June 28 primary contest or Nov. 8 general election, giving the appearance that lawmakers are using state funds to butter up their constituencies."

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