Every state has its own tax laws, but major tax laws and regulations remain the same everywhere within the US as the IRS is a federal institution and works under the Treasury department.
In addition to rules and regulations set by the federal tax body, states also enforce their own regulations, which apply only to citizens who fall under their jurisdictions.
Sometimes, you may need tax relief so you can continue to contribute your fair share to the treasury.
How To Qualify For Tax Relief In Chicago, IL?
Here is how you can qualify for tax relief in Chicago, Illinois:
Senior Citizen Tax Deferral Program:
If you are a senior citizen older than 65 years of age by June 1st of the tax year, you can avail of this relief by which you can defer all or part of the tax on your property only used as a personal residence. It is basically a form of a loan which you have to pay after your death or at the time of sale of the property. However, this relief comes with 6 percent interest per annum for all years that you avail of this deferral.
Homestead Revaluation Exemption:
This exemption is commonly known as an owner-occupied exemption, which allows you to lower the equalized assessed value of your property if you are living on the property since before January 1st of the tax year. The amount of relief to lower the assessed value cannot exceed $6000. The exemption needs to be initiated by the Township Assessor’s Office.
Senior Homestead Exemption:
In addition to the Homestead revaluation exemption, you can avail of senior homestead exemption if you are a senior citizen aged over 65. The amount of this relief is capped at $5000, which is in addition to $6000 normal homestead relief. The application to avail of this relief only needs to be submitted for the 1st time when we are about to avail it.
Homestead Improvement Exemption:
Any improvement you made to your house recently can be deferred from the assessment of the value of the property for your principal residence. The maximum relief can be obtained for up to 4 years after the improvement is made, and the amount must not exceed $25000. This exemption is also needed to be initiated by the Township Assessor’s Office without the requirement of the annual application.
Senior Assessment Freeze Exemption:
It is probably the 1st exemption you should avail of if you are a senior citizen of the state. This exemption stops the Township Assessor’s Office to assess the value of your residential property. Your annual income should not exceed $65000 for qualification to this relief.
Returning Veterans’ Homestead Exemption:
This relief or exemption provides veterans who return from active duty in an armed conflict involving US armed forces with a one-time reduction of $5000 reduction in the property’s equalized assessed value. There is also a Disabled Veterans’ Homestead Exemption providing them $70000 reduction in assessed value and Disabled Veterans’ Standard Homestead Exemption, which is a minimum of $2500 and a maximum of $5000 as the reduction in EAV.
Disabled Persons’ Homestead Exemption:
If you are a disabled person providing a $2000 reduction in the property’s EAV. Disabled people need to submit an annual application to continue availing of this relief.
The Bottom Line:
Although the IRS is tough with tax recovery, they also provide relief to citizens to whatever extent they can. You only need to provide them due cause or reason that you qualify for certain relief.
Contact UTS if you need professional help in getting tax relief in Chicago, IL.