ST. LOUIS (KTVI) — Illinois will start processing refunds for eligible taxpayers who filed 2020 Illinois Individual Income Tax returns before a federal unemployment tax exemption program went into effect, Gov. J.B. Pritzker announced Wednesday.
A retroactive provision of the American Rescue Plan Act makes the first $10,200 per taxpayer of unemployment benefits nontaxable for returns with a modified Adjusted Gross Income of less than $150,000. That went into effect after filing for tax season started Feb. 12.
The state said it believes approximately 376,000 taxpayers may be eligible for a refund via this provision. Taxpayers who filed electronically don’t need to do anything to get the refund. The state will contact more than 3,000 people who filed with paper that they’ll need to amend their return.