News

Veterans urged to apply for new tax breaks

Posted December 20, 2007 10:00 pm

Adriana Colindres

Because of new laws that took effect in 2007, the state is offering tax breaks to returning veterans, disabled veterans and employers who hire veterans.

But before getting the tax exemptions, eligible veterans and employers must file for them - and quickly. The deadlines vary, with some arriving as soon as the end of this month.

That was the message delivered Thursday by Illinois Department of Veterans' Affairs Director Tammy Duckworth, Department of Revenue Director Brian Hamer and others at a news conference in the American Legion Post 32 building in Springfield.

Some eligible veterans might hesitate to apply for the tax breaks because "they think there are other guys who are worse off than they are," Duckworth said.

But she urged veterans not to let that kind of thinking stop them from applying.

"You fought for the rest of us," she said. "It is your turn."

Duckworth said her office is working with the American Legion and other veterans groups to publicize the tax breaks.

"Really, this (news conference) is us asking for help in spreading the word because there are going to be veterans out there who won't know about it and are going to miss out on it."

The tax breaks are the result of two laws that took effect this year. One created two new property tax exemptions for veterans, and the other created a state income tax credit for employers who hire veterans.

The new property tax breaks are called the Returning Veterans' Homestead Exemption and the Disabled Veterans' Standard Homestead Exemption.

The exemption for returning veterans provides them with a one-time, $5,000 reduction to their home's equalized assessed value. To get the exemption, veterans who served on active duty in an armed conflict involving the U.S. military should file an application once they get back home.

The exemption for disabled veterans provides a reduction in equalized assessed value of property owned by a veteran with a service-connected disability that the U.S. Department of Veterans Affairs has certified. A $5,000 homestead exemption is available to a veteran with a service-connected disability of at least 75 percent.

A $2,500 homestead exemption is available to a veteran with a service-connected disability of at least 50 percent but less than 75 percent.

Deadlines for the homestead exemptions vary, depending on the county where property taxes are filed, Hamer said.

For example, the deadline is Dec. 31 in Adams and Vermillion counties. It is Jan. 31 in Sangamon County, March 1 in Tazewell County and March 31 in Winnebago County.

Some counties, including Peoria, Champaign, Lake and McHenry, will not set an official due date to file for the new exemptions.

The new income tax credit for employers who hire veterans enables employers to take a credit of up to $600 a year for wages paid to each veteran hired after Jan. 1, 2007.

For an employer to claim the Veteran's Tax Credit, the hired veteran must work at least 185 days during the tax year. The veteran must have served in the armed forces, reserves or Illinois National Guard on active duty in Operation Desert Storm, Operation Enduring Freedom or Operation Iraqi Freedom.

Employers may claim the credit on 2007 tax returns filed in 2008.

More information about the tax breaks is available at all 51 veterans' services offices operated by the Illinois Department of Veterans' Affairs, Duckworth said.

Information also is available by calling the Department of Revenue's toll-free assistance line at (800) 732-8866 or by going online to the "Taxpayer Answer Center" section of the department's Web site at www.tax.Illinois.gov.

Adriana Colindres can be reached at 782-6292 or adriana.colindres@sj-r.com.

Article Categories
News