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. LRB103 29823 HLH 56231 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3298 Introduced , by Rep. Anna Moeller SYNOPSIS AS INTRODUCED: 20 ILCS 2505/2505-810 new 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. LRB103 29823 HLH 56231 b LRB103 29823 HLH 56231 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3298 Introduced , by Rep. Anna Moeller SYNOPSIS AS INTRODUCED: 20 ILCS 2505/2505-810 new 20 ILCS 2505/2505-810 new 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. LRB103 29823 HLH 56231 b LRB103 29823 HLH 56231 b LRB103 29823 HLH 56231 b A BILL FOR HB3298LRB103 29823 HLH 56231 b HB3298 LRB103 29823 HLH 56231 b HB3298 LRB103 29823 HLH 56231 b 1 AN ACT concerning revenue. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Department of Revenue Law of the Civil 5 Administrative Code of Illinois is amended by adding Section 6 2505-810 as follows: 7 (20 ILCS 2505/2505-810 new) 8 Sec. 2505-810. Automated filing. 9 (a) Prior to January 1, 2025, the Department shall develop 10 an automated filing process to allow individuals who are 11 eligible for the federal and State earned income tax credit 12 but who earn less than the federal income tax filing 13 thresholds to easily claim their State earned income tax 14 credit with support from the Department of Human Services, the 15 Department of Employment Security, and the Department of 16 Healthcare and Family Services. 17 (b) For taxable years beginning on or after January 1, 18 2024, the Department of Revenue shall collaborate with the 19 Department of Human Services and the Department of Healthcare 20 and Family Services to develop a process to provide automated 21 tax returns for Medicaid recipients who are near or under the 22 federal filing guidelines and have simple returns. The 23 Department of Human Services shall adapt its application 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3298 Introduced , by Rep. Anna Moeller SYNOPSIS AS INTRODUCED: 20 ILCS 2505/2505-810 new 20 ILCS 2505/2505-810 new 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. LRB103 29823 HLH 56231 b LRB103 29823 HLH 56231 b LRB103 29823 HLH 56231 b A BILL FOR 20 ILCS 2505/2505-810 new LRB103 29823 HLH 56231 b HB3298 LRB103 29823 HLH 56231 b HB3298- 2 -LRB103 29823 HLH 56231 b HB3298 - 2 - LRB103 29823 HLH 56231 b HB3298 - 2 - LRB103 29823 HLH 56231 b 1 process to ensure that needed data is collected from 2 applications when participants apply or recertify, without the 3 need for a second application from another Department. The 4 Department of Employment Security shall provide W-2 5 verification as needed to the Department of Revenue to ensure 6 the accuracy of returns and to reduce paperwork for 7 recipients. All participants shall have the opportunity to opt 8 out. The Department shall test the process with real 9 participants to assess its ease of use, clarity, simplicity, 10 and effectiveness, as measured by return rates, prior to 11 rolling the process out to all new applicants. For the purpose 12 of returning money to low-income individuals who are eligible 13 for the State earned income tax credit but have not claimed it, 14 the Department of Revenue may initiate returns for individuals 15 who have not yet filed their federal income tax returns. 16 (c) For taxable years beginning on or after January 1, 17 2024, the Departments specified in this Section shall 18 collaborate to expand the automated tax return process to all 19 Medicaid recipients who fall near or under the Internal 20 Revenue Service's filing minimums for the previous tax year. 21 (d) Beginning on January 1, 2026, the Illinois Commission 22 on Poverty Alleviation and Economic Security shall review the 23 effectiveness of the program and make recommendations for 24 expansion to other low-income populations served by government 25 programs. Beginning in that same year, the Department of 26 Revenue shall work with the Department of Employment Security HB3298 - 2 - LRB103 29823 HLH 56231 b HB3298- 3 -LRB103 29823 HLH 56231 b HB3298 - 3 - LRB103 29823 HLH 56231 b HB3298 - 3 - LRB103 29823 HLH 56231 b 1 to create a streamlined process for part-time or contingent 2 workers receiving 1099 forms or other forms designated for 3 part-time contingent work. This process shall allow gig, 4 part-time, and contingent workers receiving 1099 forms to 5 easily and readily summarize and confirm their total 1099 6 income for each tax year with the Department of Employment 7 Security. This new process is intended to generate a simple 8 form that workers can use to verify their combined 1099 or 9 other contingent work income amounts with the Department of 10 Human Services for the purposes of applying for government 11 benefits and with the Department of Revenue for the purposes 12 of filing taxes. 13 Section 99. Effective date. This Act takes effect upon 14 becoming law. HB3298 - 3 - LRB103 29823 HLH 56231 b