Illinois Earned Income Credit 2023: How to Qualify
Understand the 2023 expansion of the Illinois Earned Income Credit. Learn how qualifying for the federal EITC is the primary step to receiving this state benefit.
The Illinois Earned Income Credit (EIC) is a refundable state tax credit for working individuals and families with low to moderate incomes. It lowers the state income tax a person owes and can result in a tax refund even if no tax is owed. For the 2024 tax year, filed in 2025, Illinois also introduced a Child Tax Credit for families who qualify for the EIC.
Determining Your Eligibility
Qualification for the Illinois EIC is directly linked to your eligibility for the federal Earned Income Tax Credit (EITC). You must meet all requirements for the federal credit before you can claim the state version. This means federal rules on income, filing status, and qualifying children serve as the foundation for eligibility, though Illinois has expanded its own rules to include more filers.
For the 2024 tax year, your earned income and adjusted gross income (AGI) must be less than $66,819, though the specific limit depends on your filing status and number of children. Your investment income for the year must not exceed $11,600.
A qualifying child must meet specific tests related to relationship, age, and residency. The child must be your son, daughter, stepchild, foster child, brother, sister, or a descendant of any of them. They must be under age 19 at the end of the year, under age 24 if a full-time student, or any age if permanently and totally disabled. The child must have lived with you in the United States for more than half of the year.
Illinois has expanded eligibility for certain taxpayers without a qualifying child. Individuals who are 18 years or older can qualify, including those over age 65. A state-specific expansion allows individuals who file using an Individual Taxpayer Identification Number (ITIN) to qualify for the Illinois EIC, even if they do not qualify for the federal credit for this reason. You must also be an Illinois resident to claim the credit.
Calculating the Illinois Credit Amount
The Illinois Earned Income Credit is calculated as a percentage of the federal credit. For the 2024 tax year, the Illinois credit is 20% of your federal EIC amount. For instance, if your federal EIC is $3,000, your Illinois credit would be $600.
The Illinois Child Tax Credit
New for the 2024 tax year, Illinois has introduced a Child Tax Credit for families who qualify for the state’s EIC. To be eligible, you must have at least one qualifying child under the age of 12.
This credit is calculated as 20% of your Illinois Earned Income Credit amount. For example, if your Illinois EIC is $600, your Illinois Child Tax Credit would be an additional $120. For the 2025 tax year, this credit is scheduled to increase to 40% of the Illinois EIC.
How to Claim the Credit
The Illinois EIC is claimed on Form IL-1040, the Illinois Individual Income Tax Return. You must file this form to receive the credit, even if you do not have a filing requirement or owe any Illinois tax.
You must complete and attach Schedule IL-E/EIC, the Illinois Exemption and Earned Income Credit Schedule, to your IL-1040. On this schedule, you will compute your EIC and the new Child Tax Credit, if applicable.
If claiming the credit with a qualifying child, you must attach a copy of your federal tax return to your IL-1040. This includes the main Form 1040 and the federal Schedule EIC. Failure to attach these documents can lead to delays or denial of the credit.
When your return is processed, the Illinois EIC and Child Tax Credit are first applied against any income tax you owe. If the total credit amount is larger than your tax liability, the remaining portion will be issued to you as a refund.