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What to know before filing your 2022 tax return in Illinois, Missouri

Before you file your 2022 income tax return, there are a few things that have changed since last year you should know about.

ST. LOUIS — Taxpayers should be receiving their W-2 forms soon, as U.S. employers are required by law to distribute the forms to employees by Jan. 31.

In both Missouri and Illinois, the deadline to file for the individual income tax return is April 18. But before you file your 2022 income tax return in Missouri or Illinois, there are a few things that have changed since last year you should be aware of.

Whether you’re filing single or jointly, standard deduction amounts have gone up for 2022 returns, according to the IRS. Here are the deductions by filing status:

  • Single - $12,950 – up $400 from 2021.
  • Married filing combined - $25,900 – up $800 from 2021.
  • Married filing separate - $12,950 – up $400 from 2021.
  • Head of household - $19,400 – up $600 from 2021.
  • Qualified widow(er) - $25,900 – up $800 from 2021.

If you utilize third-party payment services like CashApp, Venmo, PayPal or Square, you might have more income to claim in 2022. New this year, taxpayers should receive Form 1099-K via mail by Jan. 31 if they received third-party payments for goods and services exceeding $600 in a single transaction. 

Money received through third-party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses, however, remains untaxed.

Some tax credits have returned to pre-pandemic levels, according to the IRS. For the Child Tax Credit, those who got $3,600 per dependent in 2021 will only receive $2,000 per child if eligible in 2022. For the Earned Income Tax Credit, taxpayers without children who received $1,500 in 2021 will now only get $500. The Child and Dependent Care Credit maximum will return to $2,100 versus $8,000 in 2021.

Also new this year, taxpayers who take a standard deduction will no longer be able to take an above-the-line deduction for charitable donations. During COVID-19, taxpayers were able to take up to a $600 charitable donation deduction.

Illinois

Individual income tax forms for 2022 will launch once Illinois’ tax season opens for filing on Jan. 23.

The 2022 personal exemption amount is $2,425.

The original due date to file your 2022 Form IL-1040 and pay any tax you owe to Illinois is April 18. The extended due date for filing your return is Oct. 16.

Per Public Act 102-0799, a check box was added to Form IL-1040 that authorizes the Illinois Department of Revenue to provide health insurance eligibility information and share contact and income information with the state health benefits exchange.

An addendum to IL-1040 and Schedule M instructions was created to provide instructions for taxpayers who received a “discharge of indebtedness” due to student loan forgiveness that isn’t excluded from the taxpayer’s federal adjusted gross income.

Here’s what’s new for income tax credits for 2022, according to the IDR:

  • Public Act 102-0669 created a tax credit for Reimagining Electric Vehicles Illinois Investments Tax Credit.
  • Public Act 102-0700 created the Agritourism Liability Insurance Tax Credit, which makes any individual or entity that operates an agritourism operation in Illinois entitled to a tax credit equal to liability insurance premiums paid during the taxable year or $1,000.
  • Public Act 102-1053 created the Recovery and Mental Health Tax Credit, which awards a tax credit to employers who employ eligible individuals in recovery from a substance-use disorder or mental illness in part-time or full-time positions.
  • Public Act 102-0700 created the Economic Development for a Growing Economy Tax Credit, which incentivizes the location and expansion of medium- and large-sized operations of commerce and industry in Illinois.
  • Public Act 102-1112 extended the deduction for contributions to a qualified ABLE account, a savings and investment account for the purpose of paying for qualified disability expenses, to tax years beginning prior to Jan. 1, 2028. Taxpayers who contribute to an Illinois ABLE account can take a state income tax deduction up to $10,000 individually or $20,000 jointly.
  • The hospital tax credit, for individuals who own a hospital license under the Hospital Licensing Act, has also been extended to tax years ending on or before Dec. 31, 2027.

Illinois residents can utilize MyTax Illinois, a free online portal, to file income tax returns, amend returns if a mistake is made and make income tax payments. 

To create a login for MyTax, you must have previously filed a Form IL-1040 with the Illinois Department of Revenue.

Missouri

The original due date to file individual income tax returns and pay any tax you owe in the state of Missouri is April 18. The extended due date for filing your return is Oct. 16.

Here are new income tax deductions for 2022, according to the Missouri DOR:

  • Foster parent tax deduction allows a taxpayer to now claim a deduction for eligible expenses directly incurred for providing care as a foster parent to one or more children.
  • The business income tax has been increased to 15% for the 2022 tax year.
  • The Employee Stock Ownership Plan subtraction from federally adjusted gross income, which expired on Dec. 31, will no longer be able to be claimed on the 2022 tax return.
  • Those filing as head of household or qualifying widow(er) will qualify for an additional $1,400 exemption.

The Missouri Department of Revenue has entered agreements with certain software providers to offer free online filing services to qualifying Missouri taxpayers. Click here to find a list of websites and their qualifications for free services.

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