Banks Are Rejecting ​Some Illinois Tax Rebate Checks —​ Here's Why

ILLINOIS — Many Illinoisans have recently received tax rebate checks, but for some, the payments are being rejected by banks. The reason? Smudged ink.

Connor Greve, a farmer from Morris, recently tried to deposit his $50 rebate only to receive a letter days later from his bank, which informed him that the check didn’t clear and he would be charged a $12 return fee, WGN reported. About 2 million rebate checks have been sent to taxpayers so far, with 300 returned due to smeared ink on the routing numbers, according to WGN.

The one-time rebates started to go out last month and the payment process is ongoing, according to the state comptroller’s office. The last day to submit information to receive the rebates was Monday.

The payments are part of the Illinois Family Relief Plan and include income tax rebates ranging from $50 to $300, which are being sent to individuals who had an income of less than $200,000 on their 1040 tax form in 2021 and couples who were making under $400,000, according to the comptroller's office. Property tax rebates up to $300 are going to individual homeowners with an income of $250,000 or less on their 1040 in 2021 and couples who made a maximum of $500,000.

But what to do if your check arrives with that pesky smudge? If the bank won’t accept it, Illinoisans can return the check to the comptroller’s office with a signed note explaining the issue and requesting a replacement. The note also must include the taxpayer’s phone number.

For more information about the rebates, visit https://bit.ly/3yU8xf6.