Illinois is extending its income tax filing period, days after the federal government did the same.
Both Illinois and federal income taxes will have the same deadline – July 15.
Governor J.B. Pritzker says it will soften the economic impact of the current COVID-19 crisis.
“Aligning our tax day with the federal government’s and giving our millions of taxpayers three additional months to file their individual returns,” Pritzker said.
Those who owe money will get a temporary reprieve, and those who are working long hours in response to pandemic will get extra time to complete their returns.
Other states, including Missouri, Iowa, Wisconsin and Indiana have taken similar action after the federal change was announced last week.
While pushing back the deadline might help some filers, it comes at a cost to the state's finances. This time of year typically brings in more money as people pony up, allowing Illinois to pay more outstanding bills.
Illinois Comptroller Susana Mendoza admitted the filing extension will create cash management challenges.
“We will continue to make critical payments for debt service, state payrolls, K-12 schools, our social and human service providers and required pension payments,” she said in a news release. “We will prioritize state payments to our hospitals, doctors and everyday heroes on the front lines fighting COVID-19.”
Still, Mendoza warned that beyond the short-term revenue delay, the current crisis will mean lower payroll and sales tax receipts in the current fiscal year.
“It is too early to measure the financial impact,” said Mendoza.
As for the state, Pritzker said tax refunds will continue to be paid promptly.