The Senior Citizen Real Estate Tax Deferral program is a tax-relief program that works like a loan. It allows qualified seniors to defer a maximum of $5,000 per tax year (this includes 1st and 2nd installments) on their primary home. The loan from the State of Illinois is paid when the property is sold, or upon the death of the participant.

Who Qualifies?

Participants must be:

• Homeowners who are at least 65 years of age by June 1 of the year in which the applications are made.
• Those whose household income is $55,000 or less.
• Surviving spouses of previously approved applicants who are at least 55 years of age within six months of the taxpayer’s death.
• Those who have owned and occupied the qualifying property for at least the last three years.
• Those who have fire or casualty insurance coverage for the qualifying property in an amount not less than the amount of the taxes being deferred.
• Those who do not owe outstanding property tax or special assessments.
• Those who have written approval from the spouse, if filing jointly, or Trustee, if the property is held in a qualifying Trust, to participate in the program.

How do I apply?

• Applications are available at the Cook County Treasurer’s Office after January 1 through the March 1 application deadline. You may also access the applications by scrolling below and selecting Forms IL-1017 and IL-1018.
• Fill out the application completely and provide photocopies, not originals, of the required documents.
• You are required to return your applications to the Cook County Treasurer’s Office no later than March 1. There are no time extensions.
• You must apply each year you want to participate.

How much will it cost?

• 6% simple interest per year payable upon death, or at the time the home is transferred to a new owner or sooner, if the participant chooses to pay off the senior-deferral loan.

How much tax can be deferred?

• The maximum annual property tax deferral shall not exceed $5,000 per year. The lien fee amount for that year is not included in the $5,000 cap. For example, a taxpayer with an annual tax bill of $5,200 will only be able to defer $5,000. It will be the taxpayer’s responsibility to pay the remaining $200 to the Cook County Treasurer’s Office.
• Please note that late payments are assessed interest of 1.5% per month until paid in full.

What if there is a mortgage?

• Although written approval from your mortgage lender is not required in order to qualify for the program, you should advise your mortgage lender of your intention to participate in the program and confirm that your participation will not violate any terms of your mortgage agreement. The same is recommended if you have entered into a “reverse-mortgage” agreement.

What if my property is in a Trust?

• For first time applicants, starting with the 2012 tax bills and thereafter, the only form of Trust that the property can be held in is an Illinois Land Trust with the applicant or the applicant and spouse identified as the sole beneficiary(s) of the Trust.
• All applicants must submit both the Trust Agreement and the Deed in Trust. The Trustee (the bank or Trust Company) and homeowner must both sign Form IL-1017. Senior citizens interested in participating with a property held in Trust should begin the application process as early as possible.

What if I change my mind?

• The program is flexible. A homeowner may withdraw, keep the loan, pay off the loan and/or re-enter the following year.

To review this from the source, Click Here

Recently, unit Owner ‘Joe’ got in touch with the County Treasurer’s office, with some more detailed situational questions and information, which some Owners may find very helpful. With his permission, I am providing his Q&A:

“If my wife is on the deed, does she sign the application too? The applicant must be age 65. If that’s you, your wife must sign under spouse.

Copies of driver’s license for both? No. Only the driver’s license of the applicant is required (both front and back sides).

The application requires the signature of the Collector. Who is that? Maria Pappas, the Treasurer

For the copy of my tax bill, can I download the PDF from the website? Yes

For the copy of my deed, can I download an unofficial copy from the recorder’s website? Yes.

For market value, can I use “Property Value” as found on the Second Installment tax bill? Yes

Should unemployment compensation be reported? Yes. Report it on line 11 of the worksheet.

Also include copies of the building and homeowners insurance and copies of the most recent tax bills.

Form 1017 is the application itself. Form 1018 is the lien for the tax deferred amount that is applied to the property in question.

One caveat – I submitted all the forms by the March 1st deadline, but I don’t yet know if my application has been or will be approved. Mr. Corfman was very helpful so I’m optimistic about my prospects. If I have any future difficulties, I’ll let you know.

Here are [other] relevant links of interest:

The Senior Citizen Real Estate Tax Deferral Program Brochure

The Senior Citizen Real Estate Tax Deferral Program

Senior Deferral Info Tax Year 2020 pdf

IL-1017 Form TY 2020.pdf

IL-1018 Form TY 2020.pdf”

Special thanks to Joe for sharing this with everyone!