Chanelle Brown, a mother from Evanston, knows how expensive raising children can be. When she had her second child last year, everything seemed to cost more—child care, diapers, formula, and even basic groceries.
“Child care costs as much as our rent,” Brown said. “Even with assistance, prices keep going up. We’re cutting back, but I still want my kids to have a good life.”
This year, families like Brown’s will receive extra financial help through tax changes in Illinois. The state has expanded its Earned Income Tax Credit (EITC) and introduced a Child Tax Credit (CTC) to help parents struggling with rising costs.
More Money for Families
The Illinois EITC gives low- and moderate-income workers a tax break by reducing what they owe the state. If the credit lowers their tax to less than zero, they receive a refund. This year, the state increased the credit from 18% to 20% of the federal EITC amount, meaning families will get more money back.
Additionally, the new Child Tax Credit will provide even more relief. Parents with children under 12 who qualify for the Illinois EITC can claim the CTC. This means extra cash for families to cover daily expenses.
“When families get more money, they can pay for what matters most—food, clothes, or even car repairs,” said Erion Malasi, a policy director at the Economic Security Project.
Who Qualifies for These Credits?
The Illinois EITC now includes more people, such as:
- Young workers (ages 18-24)
- Seniors (65 and older)
- Workers who file taxes using an Individual Taxpayer Identification Number (ITIN), including some immigrants
This means that more hardworking families can now get tax refunds to help with their expenses.
For the 2023 tax year, families can receive between $126 and $1,566 through the Illinois EITC, depending on the number of children they have. The new Child Tax Credit will add another 20% of their state EITC refund, up to $300 per family. By 2026, the CTC will increase to 40%.
Many Families Are Missing Out
Even though these credits are available, many families don’t claim them. In 2022, over 8,000 Illinois taxpayers missed out on $4.15 million in EITC refunds. Some families don’t file taxes because their income is too low, while others simply don’t know they qualify.
“This money helps families afford essentials like food and housing,” said Aimee Galvin from Stand with Children Illinois. “We want to make sure more people take advantage of it.”
The goal of these tax credits is to help families struggling with high costs, giving them more financial security and a better future.
