Hi,
My main job is to save you tax and provide as much value as possible. With this in mind, we worked out a summary of Illinois-specific credits and deductions that you may have overlooked.
If you have questions about any of these, just reply back and we can either schedule a call or go into more detail for you over email.
Credits for Individuals:
- Illinois Earned Income Tax Credit (IL EITC) – Illinois offers a refundable EITC equal to 20% of the federal EITC, which can significantly increase refunds for eligible taxpayers.
- Property Tax Credit – Illinois residents may claim a credit equal to 5% of property taxes paid on a principal residence.
- $750 per family for K-12 Education Expense Credit – Parents may claim a credit for qualified education expenses paid for eligible K-12 students.
Credits for Homeowners & Energy Efficiency:
- Energy Efficiency & Clean Energy Incentives – Illinois offers state and utility-level incentives for solar installations, electric vehicles, and energy-efficient home upgrades through state programs.
- Solar Renewable Energy Credits (SRECs) – Qualifying solar installations may generate ongoing SREC income under Illinois’ clean energy initiatives.
Credits for Businesses:
- Research & Development (R&D) Tax Credit – Businesses conducting qualified R&D activities in Illinois may qualify for a state R&D credit, which may be refundable or carried forward depending on eligibility.
- Economic Development for a Growing Economy (EDGE) Credit, Reimagining Energy and Vehicles (REV), and Manufacturing Illinois Chips for Real Opportunity (MICRO) – are THREE major credits that are available to businesses in Illinois and can provide hundreds of thousands of dollars worth of credits.
- Work Opportunity Credit (State Alignment) – Illinois employers may benefit from coordination with the federal Work Opportunity Tax Credit when hiring employees from targeted groups.
Deductions & Exclusions:
- Retirement Income – Illinois does not tax retirement income, including pensions, IRAs, 401(k)s, and Social Security benefits.
- Social Security Benefits – Fully exempt from Illinois income tax.
- State-Specific Adjustments – Illinois allows certain income subtractions and adjustments that may reduce taxable income depending on your situation.
Let’s hop on a quick 10 – 15 minute call to see which one of these credits applies to you! Please contact us by early next week to make sure we secure a spot before the tax season heats up.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com