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Who is eligible for the Illinois Property Tax Credit?

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Question
Who is eligible for the Illinois Property Tax Credit?

Answer

The Illinois Property Tax Credit is a credit on your individual income tax return equal to 5 percent of Illinois Property Tax (real estate tax) you paid on your principal residence.

You must own your residence in order to take this credit. If you and your spouse each have a principal residence or if you had two principal residences during the tax year due to the sale of your home, you may claim the tax paid on both residences when figuring this credit. See "What if I sell my house?" for more information. For tax year

  • 2009 and after, complete Schedule ICR, Illinois Credits, to figure your credit. You must write your property number (sometimes called "property index number," "parcel number," or "permanent number") on Schedule ICR when claiming an Illinois Property Tax Credit. See the Schedule ICR instructions for more information.
  • 2008, complete Schedule ICR to figure your credit.
  • 2007 and earlier, complete the Homeowner’s Property Tax (PT) Worksheet to figure your credit. You will find a copy of this worksheet in the Form IL-1040 instructions for the tax year you are filing.

What property tax may I include when I figure a property tax credit?

You may include the following when figuring your property tax credit:

  • Property tax you paid on your principal residence you owned if it is located in Illinois. Generally, you may figure a credit on the property tax you paid on your principal residence for the prior year. For example, you may use the property tax you paid in 2010 for your 2009 residence to figure your property tax credit on your 2010 Form IL-1040. Property tax you paid on an adjoining lot to your principal residence, if it is used for residential purposes.
  • Prorated property tax you paid in the year you sold your Illinois residence. Illinois village tax you paid in the tax year. Multi-unit property tax you paid, but only if your principal residence is one of the units. Include only the tax assessed on the unit that is your Illinois residence.

What may not be included when I figure a property tax credit?

You may not include the following when figuring your property tax credit:

  • Property tax assessed on property that is not your principal residence. For example, you may not claim a tax credit on property that you do not live in or consider your principal residence. Examples would be a vacation home, a vacant lot, rental property, property outside of Illinois, and farm land.
  • Property tax assessed on your principal residence that you do not own, even if you paid the tax. For example, if you live with relatives who own the residence and you paid the property tax but you do not own the property, you may not claim a tax credit. Interest penalties or fees you paid because your property tax installments were paid late.
  • Any portion of the property tax due that you did not pay in the tax year. For example, if you did not pay one or both property tax installments on your 2009 taxes due in 2010, you may not include the portion of the 2009 taxes that you did not pay when figuring your property tax credit on your 2010 Form IL-1040.
  • Accountant fees or lawyer fees paid in association with your property tax. Homeowner’s association dues or fees paid.
  • Property tax paid on an out-of-state home.

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Views: 1248 Created on: Jun 15, 2013
Date updated: Aug 20, 2015
Posted in: STATES, Illinois

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