IL HB3298

Department of Revenue shall develop an automated filing process by January 1, 2025 for individuals eligible for federal and state earned income tax credits who earn below federal filing thresholds, with support from Department of Human Services, Department of Employment Security, and Department of Healthcare and Family Services.

For taxable years beginning January 1, 2024, the Department of Revenue shall collaborate with other agencies to develop automated tax returns for Medicaid recipients near or under IRS filing minimums with simple returns, allowing opt-out and testing with real participants before full rollout.

Department of Human Services shall adapt its application process to collect necessary data during Medicaid application or recertification without requiring a separate application, and Department of Employment Security shall provide W-2 verification to ensure return accuracy.

Beginning January 1, 2026, the Illinois Commission on Poverty Alleviation and Economic Security shall review program effectiveness and recommend expansion to other low-income populations, and the Department of Revenue shall work with Department of Employment Security to create a streamlined process for gig workers and contingent workers receiving 1099 forms.

Act takes effect upon becoming law.