Property Tax Credit
- 1. What is the Illinois Property Tax Credit?
- 2. Am I eligible for a property tax credit?
- 3. What may not be included when I figure a property tax credit?
- 4. How do I claim the Property Tax Credit?
- 5. If you received a letter regarding your property tax credit:
- 6. Why did I receive a letter asking me to verify my property tax credit? Why am I receiving this letter if I did not receive it in the past?
- 7. What documentation do I need to submit to verify my Property Tax Credit?
- 8. Where do I send my support documentation?
1. What is the Illinois Property Tax Credit?
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 and reside in your residence in order to take this credit. For tax years beginning on or after January 1, 2017, the Illinois Property Tax Credit is not allowed if a taxpayer's federal Adjusted Gross Income (AGI) exceeds $500,000 for returns with a federal filing status of married filing jointly, or $250,000 for all other returns.
2. Am I eligible for a property tax credit?
You will qualify for the property tax credit if:
- your principal residence during the year preceding the tax year at issue was in Illinois, and
- you owned the residence, and
- you paid property tax on your principal residence (excluding any applicable exemptions, late fees, and other charges). See below for other exclusions.
- If you are married and both you and your spouse qualify for a property tax credit on your principal residence, and you are filing separate Illinois returns, you may each claim a property tax credit. However, the total amount of credit claimed between both spouses may not exceed 5 percent of the qualifying property tax.
- Illinois property you purchased - You may figure a credit for Illinois property you purchased during 2022 providing you figure only that portion of your taxes that pertains to the time you owned and lived at the property during 2022. You may not take a credit for taxes you paid if the seller reimbursed you at the time of closing. You also may not take a credit on your 2023 return for property you purchased in 2023.
- Illinois property you sold - You may figure a credit for Illinois property you sold in 2023 by combining the 2022 property tax paid in 2023, as well as a portion of the 2023 tax paid based on the time you owned and lived at the property during 2023. You may not take a credit on your 2023 return for property sold during 2022.
Nonresidents of Illinois may not take this credit.
See 86 Ill Adm. Code 100.2180 for additional qualifying information about the property tax credit.
3. 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 2020 taxes due in 2021, you may not include the portion of the 2020 taxes that you did not pay when figuring your property tax credit on your 2021 Form IL-1040.
- Any portion of the property tax paid that is deductible as a business expense.
- Tax paid for mobile home privilege tax.
- Accountant fees or lawyer fees paid in association with your property tax.
- Homeowner's association dues or fees paid.
- Property tax paid on separately-deeded condominium parking spaces.
- Property tax paid on an out-of-state home.
4. How do I claim the Property Tax Credit?
You may claim the property tax credit on Schedule ICR, Section A. You must enter the amount of property tax paid, the county in which your property is located, and the property number. You must enter your property number exactly as it appears on your property tax bill or assessment notice. Your property number is found near the top of your property tax bill or assessment notice. If your property taxes are paid through your mortgage, you may contact your lender for your property number.
You may also get this number from your county assessor's office. A list of counties, with contact information, is under the "Individuals" section of our website.
We review the credits you claim and, if necessary, we may ask you to provide additional information to verify your credits.
See the Schedule ICR Instructions for more information.
5. If you received a letter regarding your property tax credit:
6. Why did I receive a letter asking me to verify my property tax credit? Why am I receiving this letter if I did not receive it in the past?
We send letters requesting additional information when information is missing on Schedule ICR, amounts claimed need verified, or differences between what is entered on the Schedule ICR and the county records needs clarification. The most common issues requiring additional support and verification include
- name discrepancies,
- property ownership verification,
- property number differences, and
- multiple properties explanations. For example, multiple properties, that do not have consecutive property numbers or are located in different counties, being claimed as the primary residence.
We have enhanced the Illinois Property Tax Credit verification process to verify ownership and property tax amounts while protecting your identity and educating you on correct reporting practices.
Note: Even if you have claimed and received the property tax credit in the past, you may still receive a letter requesting verification of property tax paid for this year.
7. What documentation do I need to submit to verify my Property Tax Credit?
Make sure to include Page 1 of the letter we sent you with your response and keep a copy of the letter for your records. Respond with the items requested in the letter. This may include:
- A completed Schedule ICR with the county in which your property is located and your complete property number,
- A copy of your property tax bill or a document from your county assessor's office or mortgage lender that shows your name and address, your property number, and the amount of property tax paid, and
- Evidence you paid the property tax such as copy of your payment receipts, cancelled checks, bank statements, or Form 1098, Mortgage Interest Statement, showing the amount of property tax paid. We will also accept a document from your county assessor's office or mortgage lender that shows your name and address, your Property Index Number, and the amount of property tax paid.
8. Where do I send my support documentation?
Send all information requested to the address on the letter.
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19084
SPRINGFIELD ILLINOIS 62794-9084