Illinois Earned Income Tax Credit (EITC) and Earned Income Credit (EIC)

The Earned Income Tax Credit (EITC/EIC) is a benefit for working people with low to moderate income that reduces the amount of tax owed and may result in a refund. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file.

For tax years that began on or after January 1, 2018, the Illinois EITC/EIC is 18 percent of your federal EITC/EIC. For tax years beginning on January 1, 2023, the Illinois EITC/EIC is increased to 20 percent of your federal EITC/EIC and is extended to taxpayers, aged 18 – 25 and 65 and older, and ITIN filers (P.A. 102-0700).

In general, if you qualified for a federal Earned Income Tax Credit, you also qualify for the Illinois EITC/EIC.

Federally, you qualify for EITC/EIC if:

• you have earned income and adjusted gross income within certain limits; AND
  
• you meet certain basic rules; AND
• you either:
  
• meet the rules for those without a qualifying child; OR
• have a child that meets all the qualifying child rules for you, or your spouse if you file a joint return.
  

For more information on qualifying for the federal EITC/EIC, go to the IRS website.

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.

If you filed Form IL-1040 for a prior year, and received the federal EITC/EIC credit, but did not claim the Illinois EITC/EIC credit for that year, you may file IL-1040-X, Amended Illinois Income Tax Return, to claim it. Also, include Schedule IL-E/EIC.

We send letters about EITC/EIC that may:

• Ask you to send information to verify your federal EITC/EIC claim,
  
• Ask you to send additional information to confirm your claim,
• Ask you to send information to verify your business income and expenses,
  
• Provide important information about your claim, or
  
• Ask you to provide additional information such as:
• your city-, state-, or county-issued professional license, registration, or certification (if required for your occupation)
  
• sales, business, or withholding tax registration forms
• your federal return
• your federal Schedule C or Schedule C-EZ
• your federal Form 8867 (if you used a paid preparer to file your return)
  
• documents you used to calculate your business income and expenses (ledger, spreadsheet, journal, sales slips, receipts, etc.)
  

Please do not attach this information to your originally-filed Form IL-1040, Individual Income Tax Return, unless it is requested in the instructions. If necessary, we will send you a letter requesting additional documents in order to verify your EITC/EIC.

Respond to the address listed on the letter with all of the information requested. 

Errors can delay your refund or result in the Illinois Department of Revenue denying your EITC/EIC claim. Avoid the following common errors:

• Claiming a child who does not meet the qualifying tests for age, relationship and residency.
• Social Security number or last name mismatches.
• Filing as single or head of household when married.
• Over or under reporting of income or expenses.
• Entering the incorrect amount of federal EITC/EIC credit.