Chicago Governor JB Pritzker reminds the residents to claim their state Earned Income Credit (EIC) and federal Earned Income Tax Credit (EITC) each season. He noted that thousands of Illinoisans failed to claim the savings. In 2022, more than 70,000 Illinoisans had claimed their federal EITC, but could not claim their state EIC, leaving over $25.3 million unclaimed, as reported on 920 WMOK.
The Internal Revenue Service (IRS) said workers earning $59,187 should learn about EITC eligibility. They can use the EITC Assistant to see the requirements. For the tax year 2022, its filing season started on January 23. The eligibility requirements include taxpayers should earn an income in 2022, reaching the residency and income qualifications, and filing a tax return even if they are not required to file or do not owe any tax.
Also Read: 2023 US Tax Season and Taxation: Understanding State vs Federal Income Taxes
Illinois: thousands of Illinoisans claim their federal EITC but did not retrieve their state EIC, leaving more than $25.3 million unclaimed. (Photo: State Journal-Register)
Eligible taxpayers for the federal EITC are generally eligible for the state EIC and receive up to 18% refundable tax credit of their federal credit. The benefits of a refundable tax credit include reducing the cost of paying taxes and earning a refund if the credit is higher than the total amount they owe. According to New America Chicago, the Illinois EIC will be expanded starting the tax year 2023. The state EIC will increase to 20%, and its eligibility will include immigrants who file taxes using their ITIN number and childless workers 18 to 24 years old and 65 years old and older.
Meanwhile, taxpayers who received earned income in the last three years but did not claim these benefits can still apply by filing amended returns.
If you are unsure of the amount to receive for Illinois EIC, you can follow the Schedule ILE/EIC instructions, while for the federal EITC, you can visit the IRS website.
Read More: IRS: Check Out the Earned Income Tax Credit (EITC)
