State Taxpayers Donate Refunds to Military Families

Beginning last year, Illinois taxpayers could check a box on their state tax returns to donate their tax refunds to families of deployed Reserve Component troops. So far, Illinois has sent $2.7 million to more than 5,000 military families. The state provides $500 grants to help families of its lower-paid Guard and Reserve members cover expenses after their military member is called to active duty. It also provides grants of as much as $2,000 for families in financial need because of a military deployment and $2,000 to troops injured or killed in combat or by terrorist activity. Grants go to service members in pay grades no higher than O-3 or W-3. Nine other states have established similar programs: California, Delaware, Kansas, Maine, Michigan, Rhode Island, South Carolina, Vermont and Wyoming. In addition, 21 states have introduced legislation to create programs.