103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3298

 

Introduced 2/17/2023, by Rep. Anna Moeller

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-810 new

    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department of Revenue shall develop an automated filing process to allow individuals who are eligible for the federal and State earned income tax credit but who earn less than the federal income tax filing thresholds to easily claim their State earned income tax credit with support from the Department of Human Services, the Department of Employment Security, and the Department of Healthcare and Family Services. Effective immediately.


LRB103 29823 HLH 56231 b

 

 

A BILL FOR

 

HB3298LRB103 29823 HLH 56231 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-810 as follows:
 
7    (20 ILCS 2505/2505-810 new)
8    Sec. 2505-810. Automated filing.
9    (a) Prior to January 1, 2025, the Department shall develop
10an automated filing process to allow individuals who are
11eligible for the federal and State earned income tax credit
12but who earn less than the federal income tax filing
13thresholds to easily claim their State earned income tax
14credit with support from the Department of Human Services, the
15Department of Employment Security, and the Department of
16Healthcare and Family Services.
17    (b) For taxable years beginning on or after January 1,
182024, the Department of Revenue shall collaborate with the
19Department of Human Services and the Department of Healthcare
20and Family Services to develop a process to provide automated
21tax returns for Medicaid recipients who are near or under the
22federal filing guidelines and have simple returns. The
23Department of Human Services shall adapt its application

 

 

HB3298- 2 -LRB103 29823 HLH 56231 b

1process to ensure that needed data is collected from
2applications when participants apply or recertify, without the
3need for a second application from another Department. The
4Department of Employment Security shall provide W-2
5verification as needed to the Department of Revenue to ensure
6the accuracy of returns and to reduce paperwork for
7recipients. All participants shall have the opportunity to opt
8out. The Department shall test the process with real
9participants to assess its ease of use, clarity, simplicity,
10and effectiveness, as measured by return rates, prior to
11rolling the process out to all new applicants. For the purpose
12of returning money to low-income individuals who are eligible
13for the State earned income tax credit but have not claimed it,
14the Department of Revenue may initiate returns for individuals
15who have not yet filed their federal income tax returns.
16    (c) For taxable years beginning on or after January 1,
172024, the Departments specified in this Section shall
18collaborate to expand the automated tax return process to all
19Medicaid recipients who fall near or under the Internal
20Revenue Service's filing minimums for the previous tax year.
21    (d) Beginning on January 1, 2026, the Illinois Commission
22on Poverty Alleviation and Economic Security shall review the
23effectiveness of the program and make recommendations for
24expansion to other low-income populations served by government
25programs. Beginning in that same year, the Department of
26Revenue shall work with the Department of Employment Security

 

 

HB3298- 3 -LRB103 29823 HLH 56231 b

1to create a streamlined process for part-time or contingent
2workers receiving 1099 forms or other forms designated for
3part-time contingent work. This process shall allow gig,
4part-time, and contingent workers receiving 1099 forms to
5easily and readily summarize and confirm their total 1099
6income for each tax year with the Department of Employment
7Security. This new process is intended to generate a simple
8form that workers can use to verify their combined 1099 or
9other contingent work income amounts with the Department of
10Human Services for the purposes of applying for government
11benefits and with the Department of Revenue for the purposes
12of filing taxes.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.