Quinn urges families to use tax breaks

Gov Pat Quinn is urging low income individuals to apply for new tax breaks. (Photo used under Creative Commons from Flickr user ChrisEaves.com)

CHICAGO — As families across Illinois prepare their taxes this season, Gov. Pat Quinn visited a tax assistance center organized by the Center for Economic Progress at Truman College to encourage working families across Illinois to learn about tax relief passed by the governor earlier this year and how to apply for the Illinois Earned Income Tax Credit.

The law doubles the state’s Earned Income Tax Credit (EITC) over two years, saving low-income workers an extra $105 million per year. The new law also benefits all Illinois taxpayers by raising the value of the personal exemption and indexing it to inflation.

“Illinois took a step forward this year in helping working families keep more of what they earn,” Quinn said. “We must get the word out to our friends, family and neighbors about who is eligible and how to apply for this tax relief that will help every day people and grow our economy.”

To benefit from Illinois’ EITC, also known as the Earned Income Credit (EIC), taxpayers must include it on their tax returns. While more than 2.5 million state residents benefited from the Illinois EITC in 2010, many people who are eligible for EITC don’t file for it.

The not-for-profit Center for Economic Progress (CEP) estimates that between 10 and 20 percent of eligible taxpayers did not file for EITC last year.

To help working families achieve the maximum savings on their taxes, the Illinois Department of Human Services (DHS) partners with the CEP Tax Counseling Project to provide free tax preparation assistance at tax assistance centers across the state. The services are provided free of charge to families making less than $50,000 annually and to individuals with yearly incomes under $25,000. More than 28,000 Illinois taxpayers filed returns through the program in the 2010 tax season, with more than $50 million in state and federal tax refunds returned to clients.

DHS also funds the Tax Assistance Program (TAP), which recruits tax professionals to volunteer to assist low-income families in 23 locations in Chicago and the suburbs. DHS also works with its clients and those who found jobs and have left DHS programs to educate them about tax preparation programs and ways to ensure they receive the maximum refund on their tax returns.

More information on the Tax Counseling Project can be found at www.economicprogress.org. Details are also available on the IDHS website at www.dhs.state.il.us and the Department of Revenue website at www.revenue.state.il.us.