Money & Debt

What is an Earned Income Tax Credit?

An Earned Income Tax Credit, or EITC, is a tax benefit for people who work and have limited income. Even if you owe no income tax, you could still be eligible to receive a payment—as long as you file your tax returns.

There are two EITCs for Illinois residents: a federal and a state EITC.

Plan ahead: if you claim the EITC, your tax refund payment can't be issued before February 15th.

If you receive any EITC payment, it will not impact your current cash, food stamp, or medical benefits.

If you were eligible for the federal or state EITC for the last 3 years, but did not file for the credit in the past, you can claim the credit for up to 3 years by filing an amended tax return.

There are special rules for members of the military and the clergy.

You may claim a relative of any age who is totally and permanently disabled and fits all other eligibility requirements. Read more about Disability and the EITC.

The Federal Earned Income Tax Credit

The federal Earned Income Tax Credit gives certain taxpayers up to $7,430 as of 2024.

Basic eligibility:

• Filing Status: Most filing statuses are eligible, but married individuals must file jointly, and you cannot file as "married filing separately."
• Work Requirement: You must have earned income from working for someone else or running or owning a business or farm.
• Social Security Number: You, your spouse, and any qualifying child listed on your tax return must have valid Social Security numbers.
• Investment Income: Your investment income must be $10,300 or less for the year.
• U.S. Citizen or Resident Alien: You must be a U.S. citizen or resident alien for the entire tax year.

The income and other rules to qualify for the EITC are complex. Use the IRS's EITC Assistant to see if you are eligible for the Federal EITC.To claim the Earned Income Tax credit, fill in the Earned Income Credit line on your federal tax return form 1040 or 1040SR. You can ask the IRS to calculate your credit amount by putting “EIC” on your form, or you can follow the instructions to calculate the amount you should receive. For more information on figuring your federal credit, see Internal Revenue Service Publication 596, Earned Income Credit on the IRS website.

The Illinois Earned Income Tax Credit

If you are an Illinois resident, and you claim the Federal EITC, you may also claim state EITC that is worth 18% of your Federal EITC amount. 

To figure out your Illinois EITC amount, follow the instructions on Schedule IL-E/EIC.

To claim the EITC/EIC on your 2022 IL-1040, Illinois Individual Income Tax Return, you must complete Schedule IL-E/EIC and enter the total from Line 8 on your IL-1040, Line 29. For more guidance see the instructions for the Schedule IL-E/EIC.

Learn more about the Illinois Earned Income Tax Credit.

Other tax credits

If you qualify for the EITC, you may also qualify for other tax credits.

• Child Tax Credit and the Credit for Other Dependents
• Child and Dependent Care Credit
• Education Credits

For more assistance, see where to get help filing your taxes.