Illinois defines rules for senior property tax freeze income calculation

Illinois established rules regarding how income is calculated for the senior property-tax freeze. The state exempts Social Security from income tax, but requires that every dollar of gross SSA-1099 benefit counts toward the $75,000 household income ceiling. Seniors must report their gross benefit, including Medicare premiums withheld, even if only a smaller amount is deposited.

The rules clarify that income tax rules and property freeze rules operate separately. Because gross Social Security benefits count toward the limit, a single unplanned withdrawal from an IRA could push a household over the $75,000 limit and eliminate eligibility for the exemption.