53K eligible Illinois taxpayers missed out on this tax credit last year. How to get it

Tax Day is approaching, set for April 15, and one tax credit available in the Land of Lincoln will offer a bigger refund.

The Illinois Earned Income Tax Credit is expanded for tax year 2023 to apply to more taxpayers and provide a larger refund to those who qualify.

Qualifying taxpayers with an Internal Revenue Service-issued individual taxpayer identification number and taxpayers between the ages of 18 and 24 and those older than 65, including those without a child, may now claim the Illinois EITC.

Tax year 2023 will see those who qualify for Illinois’ EITC receive tax relief matching 20% of their federal Earned Income Tax Credit amount, up from 18% previously.

You can check the status of your return online through the IRS, as well as through the Illinois Department of Revenue.

Here’s what to know about claiming the Illinois EITC, as well as other tax credits available in the state.

Illinois Earned Income Tax Credit

Those who are eligible for the federal EITC automatically qualify for Illinois’, though taxpayers may qualify for the state’s credit without qualifying for the federal one.

But more than 53,000 taxpayers who qualify for the Illinois EITC did not claim it last year, Illinois officials report, leaving more than $24.6 million in refunds unclaimed. The year before that saw more than $25.3 million left on the table.

“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,” Illinois Department of Revenue director David Harris said in a Feb. 6 press release. “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.”

Taxpayers hoping to claim the Illinois EITC for tax year 2023 must file an Illinois income tax report and have:

• Worked and earned income in 2023 of less than $17,640 ($24,210 if married filing jointly) with no qualifying children, or $56,838 ($63,398 if married filing jointly) with three or more qualifying children

• Investment income of $11,000 or less

• Valid Social Security number or individual taxpayer identification number by the due date of the 2023 return, including extensions

• Been at least 18 years of age by the end of 2023

• Been a U.S. citizen or a “resident alien” all year

Instructions on how to claim the Illinois EITC on your income tax return are available online from the state’s department of revenue.

US Child Tax Credit

Illinois doesn’t have a state-specific child tax credit, though legislators are considering one. But the federal government offers a child tax credit available to residents of the Land of Lincoln.

The federal Child Tax Credit is available to families with children who have valid Social Security numbers and:

• Are under the age of 17 at the end of the year

• Are your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister or a descendant of one of these (such as a grandchild, niece or nephew)

• Provide no more than half of their own financial support during the year

• Have lived with you for more than half the year

• Are properly claimed as your dependent on your tax return

• Do not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid

• Have been a U.S. citizen, U.S. national or U.S. “resident alien”

Individuals with an annual income of $200,000 or less, or $400,000 for people filing jointly, qualify for the full amount of the child tax credit. Those with higher incomes may still qualify for a smaller amount, and you can check your eligibility online from the IRS.

More tax credits available in Illinois

Here’s a list of Illinois-specific tax credits (Illinois residents are also eligible for additional federal programs):

• Education Expense Credit

• Natural Disaster Income Tax Credit

• Property Tax Credit

• Volunteer Emergency Worker Credit