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Does the lease state he is going to or is allowed to do this?
You can send him a letter telling him you oppose it and then when you move out if he doesn't send you back the full security deposit you can sue over it, but if it was in your lease it's going to be hard to win. Your argument would be that the statute doesn't authorize the taking of this type of "penalty" from a security deposit.
He likely missed the time to deduct any monies anyway. In Illinois, if you rented a property that was a part of five or more units, the landlord should have returned your security deposit within 30 to 45 days after you moved out -- depending on whether the you disputed deductions taken out of the security deposit or if an itemized statement and receipts are provided by the landlord.