{"id":3998,"date":"2024-04-15T14:17:42","date_gmt":"2024-04-15T19:17:42","guid":{"rendered":"https:\/\/illinoistax.org\/?p=3998"},"modified":"2024-04-15T14:26:49","modified_gmt":"2024-04-15T19:26:49","slug":"tfi-tax-facts-77-3-fun-facts-for-tax-day","status":"publish","type":"post","link":"https:\/\/illinoistax.org\/?p=3998","title":{"rendered":"TFI Tax Facts (77.3): Fun Facts for Tax Day"},"content":{"rendered":"

TFI Tax Facts: Fun Facts for Tax Day<\/u><\/strong><\/h3>\n

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April 2024 (77.3)<\/strong><\/p>\n

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With tax day upon us, this issue of Tax Facts focuses on some of the who-what-where\u00a0questions around filing individual income tax returns in Illinois.\u00a0 How many people file returns, and how?\u00a0 Where do they live? How many tax benefits do they receive?\u00a0 We discuss the\u00a0answers to these and other questions associated with this time of year.<\/p>\n

How are Returns Filed, and by Whom?<\/b><\/p>\n

\"\"\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Source: Illinois Department of Revenue<\/p>\n

91% of individual income tax returns are filed with the Illinois Department of Revenue\u00a0electronically. This includes any electronically filed return, whether an individual used tax preparation software or a tax preparer filed the return electronically. There are\u00a0thirteen software vendors approved by the Department to file returns electronically.<\/p>\n

The next most popular filing method is imaged or 2-D returns. These are paper returns that have a barcode or other similar mark on the front page of the return that contains all the\u00a0information in the return. This allows the Department to scan the barcode or other mark and easily digitize the entire return rather than having employees perform data entry line by line.<\/p>\n

Almost 100,000 taxpayers used TAP returns. TAP returns are returns that are filed\u00a0electronically using the Department\u2019s own portal, MyTax Illinois. The least popular filing method is a paper return without a 2-D barcode, with just under 50,000 taxpayers filing this way. This is the most labor-intensive filing method for the Department as they have to enter the return into a computer. Each year, fewer returns are filed this way.<\/p>\n

\"\"\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Source: Illinois Department of Revenue<\/p>\n

When filing your income tax return, you generally claim yourself and your spouse as a\u00a0personal exemption. You are not allowed to claim a personal exemption if someone else claims you as a dependent or if your adjusted gross income exceeds $250,000 (single) or $500,000 (married filing jointly). 58% of taxpayers claimed only a single exemption, and 34% claimed their spouse and themself. Although not reflected on the chart (because claimants fell into all 3 categories), there are additional exemptions for those over 65 years old or older and 20% of taxpayers claimed this exemption.<\/p>\n

\"\"\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Source: Illinois Department of Revenue<\/p>\n

Besides exemptions for your spouse and yourself, you are allowed exemptions for any\u00a0dependents, although single individuals with an adjusted gross income of more than $250,000 or couples earning more than $500,000 are not eligible. 71% of taxpayers did not claim an exemption for a dependent. Interestingly, two taxpayers claimed 15 dependents or more.<\/p>\n

Not all Illinois taxpayers live in Illinois; residents of other states (and other countries, for that matter) also pay Illinois income tax.\u00a0 Slightly over 10% of the individual income tax revenue in 2022 was collected from out-of-state residents.<\/p>\n

\"\"\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Source: Illinois Department of Revenue<\/p>\n

Who are these people?\u00a0 There are generally two ways a nonresident individual could owe tax:\u00a0 if they earn money while working here (although, as discussed below, there are a lot of\u00a0special rules), or if they own an income-producing business or asset with an Illinois presence.<\/p>\n

Nonresidents who spend time working in Illinois can owe tax on their wages, depending on a variety of factors:<\/p>\n