Indiana & Illinois Residents Should Wait to File 2022 Taxes According to the IRS
While 2022 was the year that residents in Illinois and Indiana saw a little extra cash from their respective states, those refund payments are now causing some headaches with the Internal Revenue Service.
Indiana Automatic Taxpayer Refunds
The Indiana Department of Revenue called them Automatic Taxpayer Refunds and for Hoosiers, there were two of the automatic refunds. According to the Indiana DOR,
If you filed an Indiana resident tax return for the 2020 tax year by Dec. 31, 2021, you were eligible for and should have received both refunds ($125 and $200 ATRs) in 2022 as a direct deposit (either separately or combined) or as a check for a total of $325 (or $650 for those filing jointly).
However, because eligibility requirements for the $200 ATR differ from the initial $125 ATR, if you were not eligible for the initial $125 ATR, you may now be able to claim the $200 ATR as a refundable tax credit only if you:
- received Social Security benefits in 2022; and
- are not claimed as a dependent on someone else’s 2022 Indiana income tax return
State of Illinois Tax Rebates
In Illinois, the House and Senate passed the Illinois Family Relief Plan that gave taxpayers a one-time rebate to those who met certain criteria. In September, those payments went out to an estimated six million Illinois residents. According to Illinois.gov,
Individuals who made less than $200,000 in 2021 and are not claimed as a dependent on another return will receive $50 rebates. Couples filing jointly with incomes under $400,000 will receive $100. Tax return filers will also receive $100 per dependent they claimed on their 2021 taxes, up to three dependents.
Filing 2022 Federal Tax Returns
For those residents who did receive rebates and refunds from Indiana and Illinois, the IRS is now saying to hold off on filing your 2022 federal tax returns. The reason? They say that the rules surrounding these rebates and refunds are "complex." The IRS goes on to advise,
For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available or consult with a reputable tax professional. For taxpayers and tax preparers with questions, the best course of action is to wait for additional clarification on state payments rather than calling the IRS. We also do not recommend amending a previously filed 2022 return.
Tax Season Deadline
While traditionally, your annual tax filing with the IRS has been due by April 15th, the government agency has amended the date for filing 2022 taxes. The new deadline for this year will be April 18, 2023. Learn more here.