If you live in Illinois and pay state income taxes, you might be missing out on hundreds—or even thousands—in tax savings. While most folks are familiar with the standard deductions and the usual tax credits, there are several lesser-known Illinois tax credits that could dramatically reduce your tax bill.
You should know about these 5 Illinois tax breaks that you may qualify for but probably aren’t using:
1. Illinois Earned Income Credit (EIC)
If you qualify for the federal Earned Income Tax Credit (EITC), Illinois gives you an additional 20% of your federal EITC amount. This is a refundable credit, which means even if you don’t owe any state income tax, you’ll still get this money as a refund.
💡 Example: If your federal EITC is $2,000, Illinois may add another $400 to your refund.
2. Illinois Child Tax Credit (New back in 2023!)
Here’s a recently added credit most people still don’t know about: Starting in tax year 2023, Illinois families who qualify for the Illinois EIC and have a child under the age of 12 can claim an additional Child Tax Credit.
- For 2023–2024, it’s worth 20% of your Illinois EIC
- In 2025 and beyond, it doubles to 40%
This credit is also fully refundable, making it a real game-changer for working families.
3. K–12 Education Expense Credit
If you’re paying for your child’s education—whether at a public, private, or homeschool setting—you may qualify for the Education Expense Credit. You can claim:
- 25% of expenses over $250
- Up to a maximum of $750 per family
Eligible expenses include tuition, book fees, lab fees, and certain homeschooling costs (as long as you keep good records).
4. Volunteer Emergency Worker Credit
If you volunteer your time as a firefighter, EMT, or other emergency responder, Illinois offers a $500 nonrefundable credit as a way of saying thanks.
Back in 2024, this credit was expanded to include volunteers with the Illinois Emergency Management Agency (IEMA) and the Office of Homeland Security (OHS).
To qualify, be sure you get a certificate verifying your volunteer status from your agency.
5. Property Tax Credit
If you own a home in Illinois and paid property taxes on your primary residence, you may be eligible for the Property Tax Credit, which is worth 5% of the property taxes paid.
There are a couple of qualifications:
- Your federal AGI must be under $250,000 (single) or $500,000 (married filing jointly)
- You must know your Property Index Number (PIN) when filing
This credit can help offset rising housing costs, especially for middle-income homeowners.
Why These Credits Matter
Many taxpayers overpay simply because they aren’t aware of what’s available to them. These five credits are either fully refundable or significantly reduce your tax liability—and they aren’t just for low-income families. Many middle-class taxpayers qualify, especially those with kids, mortgages, or who serve their communities.
🧾 Take Action
- Review your Illinois return every year to see if you qualified but missed these credits
- Keep receipts and documentation for education and property tax expenses
- If you’re a volunteer responder, request your eligibility certificate now
- For families with young kids, pay close attention to the EITC and Child Tax Credit combo
📢 Spread the Word
Do you know someone in Illinois who’s a parent, a homeowner, or a volunteer? Share this post with them—these tax breaks are too valuable to overlook.
“Who’s Saving You Taxes?”
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