Bill Text: IL HB3298 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced) 2023-03-31 - Added Co-Sponsor Rep. Justin Slaughter [HB3298 Detail]

Download: Illinois-2023-HB3298-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3298 Introduced , 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.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by adding Section
2505-810 as follows:
(20 ILCS 2505/2505-810 new)
Sec. 2505-810. Automated filing.
(a) Prior to January 1, 2025, the Department 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.
(b) For taxable years beginning on or after January 1,
2024, the Department of Revenue shall collaborate with the
Department of Human Services and the Department of Healthcare
and Family Services to develop a process to provide automated
tax returns for Medicaid recipients who are near or under the
federal filing guidelines and have simple returns. The
Department of Human Services shall adapt its application

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process to ensure that needed data is collected from
applications when participants apply or recertify, without the
need for a second application from another Department. The
Department of Employment Security shall provide W-2
verification as needed to the Department of Revenue to ensure
the accuracy of returns and to reduce paperwork for
recipients. All participants shall have the opportunity to opt
out. The Department shall test the process with real
participants to assess its ease of use, clarity, simplicity,
and effectiveness, as measured by return rates, prior to
rolling the process out to all new applicants. For the purpose
of returning money to low-income individuals who are eligible
for the State earned income tax credit but have not claimed it,
the Department of Revenue may initiate returns for individuals
who have not yet filed their federal income tax returns.
(c) For taxable years beginning on or after January 1,
2024, the Departments specified in this Section shall
collaborate to expand the automated tax return process to all
Medicaid recipients who fall near or under the Internal
Revenue Service's filing minimums for the previous tax year.
(d) Beginning on January 1, 2026, the Illinois Commission
on Poverty Alleviation and Economic Security shall review the
effectiveness of the program and make recommendations for
expansion to other low-income populations served by government
programs. Beginning in that same year, the Department of
Revenue shall work with the Department of Employment Security

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