Illinois Tax Payers Should Learn About EITC on the State and Federal LevelShare this post
Take Advantage of Illinois’ Expanded, Earned Income Tax Credit
All taxpayers should know about the Illinois Earned Income Tax Credit (EITC) is a benefit that helps lower to moderate income workers get a tax break. What is the Illinois Earned Income Tax Credit? The Illinois EITC is a benefit of up to $1,486 for working people with low to moderate earned income that reduces the amount of Illinois income tax owed and can result in a refund. To claim Illinois this tax credit, taxpayers must file an Illinois income tax return.
New for tax year 2023, Illinois EITC has been expanded to include taxpayers:
- ages 18+ (with or without qualifying child)
- ages 65+ (without qualifying child)
- with IRS-issued Individual Taxpayer Identification Number (ITIN)
Illinois (EITC) has also been increased from 18% to 20% of the Federal EITC.
Do I Qualify?
You qualify if you:
- worked and earned income in 2023 under $63,398 (income amount is dependent upon filing status and number of qualifying children).
- have investment income under $11,000.
- have a valid Social Security number or ITIN by the due date of your 2023 return (including extensions).
- are at least age 18 by the end of 2023.
- are a U.S. citizen or a resident alien all year.
- file an Illinois income tax return.
Taxpayers eligible for the federal EITC automatically qualify for the Illinois EITC. Despite that, in 2023, more than 53,000 Illinoisans claimed a federal EITC credit without also claiming the state EITC, leaving over $24.6 million unclaimed. It is important to note that taxpayers may qualify for the Illinois EITC even if they did not qualify for the federal EITC.
“The Illinois Earned Income Tax Credit is an important tool in reducing taxes owed and may result in a bigger refund if one is due,” said IDOR Director David Harris. “I urge all working taxpayers to double-check their eligibility status and take advantage of this tax benefit when filing their tax returns this year.”
Additional information and promotional resources for Illinois EITC are available at tax.illinois.gov/EITC. For federal EITC information, visit www.irs.gov.