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Illinois Property Tax Credit
What if I bought a house? If you filed a joint federal return and you are filing a separate Illinois
If you bought a house during the current tax year, you may not use return because one spouse is a resident and one is a nonresident or
the property tax on that house to figure your credit for that year. part-year resident, the spouse who is filing as an Illinois resident or
part-year resident may figure a property tax credit for the tax paid on
For the period of time that the seller lived in the house, the tax was the principal residence located in Illinois.
prorated and paid by the seller at the time of closing. The tax for
the remainder of the year will be assessed to you and paid in the
following year. May I figure a property tax credit if I live in a
For example, you may not use the property tax paid on a house you mobile home?
bought in 2018 on your 2018 return. The seller was liable for the tax
and will take the property tax credit. If you own a mobile home, that is your principal residence, and the
land on which it is located, you may figure a property tax credit for
If you bought a house during the previous tax year, you may use the the property tax you paid on the land during the tax year.
property tax on that house to figure your credit providing you figure
only that portion of your taxes that pertains to the time you owned You may not figure a credit for mobile home privilege tax.
and lived at the property during the tax year. For example, if you
purchased and began living in a house in October 2017, you may
use an amount equal to three months of your total 2017 property tax to May I figure a property tax credit if a portion of
figure your 2018 property tax credit. my residence is used for business?
If a portion of your principal residence is used for business, you may
What if I built a house? figure a credit on only the portion of your tax that is not deductible
as a business expense on your federal return. You must subtract
If you built a house, you may not figure a property tax credit for tax federally deductible business expenses, whether or not you actually
you paid on the vacant lot or the new house before it became your took the federal deduction, before you figure your credit.
principal residence.
For tax year
For example, if you built a house in 2017 but did not move in until 2009 and after, you must subtract this amount on Schedule
2018, you may not include any property tax that you paid when figuring ICR, Line 4e.
your property tax credit for your 2018 Form IL-1040, filed in 2019.
2008, you must subtract this amount on Schedule ICR,
Line 4b.
What if I sell my house? 2007 and earlier, see the return instructions for the year
If you sell your house, you may include you are filing.
the prior year’s property tax you paid and
the current year’s prorated tax offset against the sales price at
the time of closing May I figure a property tax credit if I own farm
when figuring your property tax credit. property?
For example, if you sold your house during 2018, you may include If you own farm property that includes your principal residence,
the 2017 tax and the 2018 prorated tax you paid at the time of you may figure a property tax credit on only the portion of the farm
closing when figuring your 2018 property tax credit on your 2018 property that is used for your principal residence. You must subtract
Form IL-1040, filed in 2019. federally deductible business expenses, whether or not you actually
took the federal deduction, before you figure your credit.
However, if the house you are selling is vacant for a period of time
before it is sold, you may not figure credit for the period of time that it For tax year
was vacant and not your principal residence. 2009 and after, you must subtract this amount on Schedule
If you moved into your new house in April 2018 but did not sell your ICR, Line 4e.
other house until January 2019, you may not include the property 2008, you must subtract this amount on Schedule ICR,
tax assessed on the old house for the time it was vacant. Line 4b.
2007 and earlier, see the return instructions for the year
May I include back property tax when I figure you are filing.
my property tax credit? If you do not live on the farm property, you may not claim a property
tax credit.
You may only include back property tax if the tax was paid during the
current tax year. However, you may not include interest penalties or
fees when figuring this credit. May I receive a refund if my property tax credit
exceeds the income tax I owe?
May I include property tax if I am married and If your property tax credit exceeds the income tax you owe, you may
filing a separate return? not receive a refund for that amount, and you may not carry unused
credit to other years. Your property tax credit may only reduce the
If you and your spouse filed separate federal returns, each spouse
income tax you owe to zero.
must file a separate Form IL-1040. Each spouse may claim part of
the property tax. The total may not exceed 100 percent of the total
property tax paid.
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