Tuesday, March 16, 2021

Check Your Property Tax for the Homeowner and Senior Exemption

You may have recently received a letter from the Cook County Assessor, Fritz Kaegi, regarding the Cook County Homeowner and Senior Exemptions. If you are a homeowner in Cook County, it is a good exercise to check to make sure you are receiving the homeowner and senior exemptions on your property tax bill. Like many other residents, you would like to see your property tax reduced if possible.  One simple way to get a nice reduction is to ensure you are receiving the homeowner's exemption (also known as Homestead Exemption) if you own your residence.  This exemption is given to property owners on their property tax bill. Taxpayers whose single-family home, townhouse, condominium, co-op or apartment building (up to six units) is their primary residence can save $250 to $2,000 per year, depending on local tax rates and assessment increases. 

If you are over 65 years of age, you may also be entitled to a Senior Exemption or Senior Freeze on your property taxes.

First, check to see if you have a homeowner's exemption by searching your property by address or PIN on the Cook County Assessor's website or Cook County Treasurer's website.  Either website will show if an exemption has been applied to the prior year.

You can also review the most recent 2nd installment of your property tax bill, it will list the exemptions at the lower portion of the bill and whether you received any exemptions for that tax period. 

Next, if you believe you are entitled to an exemption, you can obtain the exemption forms on the Assessor's website.  If you have lived in the property for a number of years and have not claimed the exemption, you can file a Certificate of Error forms to request a refund for the Homeowners and/or Senior Exemption for the years that you qualify.

Finally, if you are a new homeowner, you may not qualify for this year's homeowner exemption but put a reminder to file for the exemption next year. You may want to request the former owner to submit an exemption if they are qualified. This is also important for anyone soon to obtain the age of 65 so that they file to obtain the Senior Exemption.  

This exemption is not limited to Cook County or the State of Illinois.  Contact your local Property Tax Assessor or Treasurer to confirm that you are receiving all credits for being a homeowner in your state.

If you have any questions about tax and estate planning, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice.  Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein.  No one should rely upon the information contained herein as constituting legal advice.  The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.

Friday, March 12, 2021

Amending 2020 Tax Return with Unemployment Compensation

Now that President Biden has signed into law the "American Rescue Plan", there are a number of benefits that individuals should take note of such as the next round of stimulus payments and extended unemployment benefits.  One aspect that has not been discussed much is that for individuals who received unemployment compensation in 2020. The first $10,200 per person will not be taxed if the household makes under $150,000.  For married couples filing jointly, this means that the first $20,400 will be tax-free and could result in tax savings of over $1,000.

If you haven't filed your income tax return yet and believe you may qualify for this tax break, it is best to wait until directions have been more clearly defined from the IRS so you can receive this tax reduction. It could take a few weeks for the IRS to provide guidance on how to implement this tax law change in the middle of the tax season but your patience may pay off.  It may also impact your state income taxes as each state treats income differently than the IRS, but it may allow the tax break to benefit your state return as well.

Individuals who have already filed their 2020 income tax returns and did not take this benefit will want to review their situation to see if filing an amended return will allow them to receive this tax break.  If you believe you qualify, contact your tax preparer to ask how you may go about filing an amended return. Fortunately, the IRS has now implemented the ability to e-file amended returns starting this year.  That will hopefully expedite the process for those who normally would have to file and mail in an amended return which could take months to process. 

If you have any questions about tax and estate planning, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice.  Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein.  No one should rely upon the information contained herein as constituting legal advice.  The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.