Tax Benefits and Credits for Immigrants in Illinois in 2025

Key Takeaways

• Illinois tax credits now include ITIN filers for EITC and new Child Tax Credit starting 2025.
• Illinois Gives Tax Credit offers 25% credit on donations to approved community foundations from 2025.
• Eligibility requires filing Illinois tax returns and meeting income, residency, and age requirements.

Illinois has introduced major changes to its tax credit programs for 2025, making them much more inclusive for immigrants, especially those who file taxes using an Individual Taxpayer Identification Number (ITIN). These updates affect the Illinois Earned Income Tax Credit (EITC), the new Illinois Child Tax Credit (CTC), and the Illinois Gives Tax Credit. Here’s a clear summary of what’s changed, who is affected, when these changes take effect, what actions are required, and what these updates mean for immigrants and their families.

What Changed for 2025

Illinois has expanded its tax credits to include more working families and immigrants. The most important updates are:

• Illinois Earned Income Tax Credit (EITC): Now available to immigrants who file with an ITIN, not just those with a Social Security Number (SSN).
• Illinois Child Tax Credit (CTC): A new state-level credit, up to $300 per child under 12, is available for the first time. ITIN filers can claim this if they meet other requirements.
• Illinois Gives Tax Credit: A new 25% tax credit for donations to approved community foundation endowment funds. All taxpayers, including immigrants with an ITIN, can claim this credit.

These changes are effective for the 2025 tax year. The Illinois Department of Revenue and other organizations are encouraging all eligible families, including immigrants, to check if they qualify and to claim these benefits when filing their state tax returns.

Who Is Affected

These updates mainly affect:

• Immigrants living and working in Illinois: Especially those who use an Individual Taxpayer Identification Number (ITIN) to file taxes.
• Families with children under 12: Who may now qualify for the new Child Tax Credit.
• Anyone making charitable donations to approved community foundations: Who can now receive a tax credit for their giving.

If you are an immigrant in Illinois, especially if you do not have a Social Security Number but file taxes with an ITIN, these changes can provide significant financial support.

Effective Dates

• Illinois EITC and CTC: Changes apply to the 2025 tax year. You can claim these credits when you file your 2025 Illinois state income tax return in 2026.
• Illinois Gives Tax Credit: Applies to tax years ending on or after December 31, 2025. You can claim this credit when you file your 2025 return if you make a qualifying donation in 2025.

Required Actions for Immigrants and Families

To benefit from these tax credits, you need to:

1. Check Your Eligibility: Review the income, age, residency, and tax identification requirements for each credit.
2. Gather Needed Documents: Collect proof of income, your ITIN or SSN, and information about your children (if claiming the CTC).
3. File an Illinois Income Tax Return: Even if you owe no tax, you must file a return to claim the credits.
4. Use Free Filing Tools: Consider using free tax filing options, such as those offered by the Illinois Department of Revenue or IRS Direct File, to make the process easier.
5. For the Illinois Gives Tax Credit: Make a qualifying donation, get a Certificate of Receipt from the foundation, and apply for the credit through the MyTax Illinois system.

Illinois Earned Income Tax Credit (EITC): What You Need to Know

The Illinois Earned Income Tax Credit is a refundable tax credit for low- and moderate-income workers. For 2025, the state has made a major change by allowing immigrants who file with an ITIN to claim the credit. This is different from the federal EITC, which still does not allow ITIN filers to claim the credit.

Eligibility for Illinois EITC (2025):

• Immigrants with ITINs: Can claim the credit if they meet all other requirements.
• Income Limits: Earned income must be under $66,819. The exact limit depends on your filing status and number of children.
• Investment Income: Must be less than $11,600.
• Age: Must be at least 18 years old by the end of the tax year. This includes people ages 18–24 and those 65 and older, even if they do not have a qualifying child.
• Residency: Must be a U.S. citizen or resident alien for the entire year. For ITIN filers, this means you must have lawful presence and live in Illinois.
• Tax Filing: You must file an Illinois income tax return, even if you do not owe any tax.

Why This Matters for Immigrants

Allowing ITIN filers to claim the Illinois Earned Income Tax Credit means that many immigrant workers, who were previously excluded, can now get the same tax benefits as citizens and permanent residents. This can lead to larger tax refunds or lower tax bills, providing real financial relief for working families.

Sarah Saheb, Director of Economic Security Illinois, said, “The expanded Earned Income Tax Credit will provide real relief that will help families thrive, create new opportunities, and support our local economies.” Illinois Department of Revenue Director David Harris also encourages all taxpayers to double-check their eligibility and take advantage of these benefits.

How to Claim the Illinois EITC

• Step 1: Check if your income, age, and residency meet the requirements.
• Step 2: Gather your ITIN or SSN, proof of income, and any other needed documents.
• Step 3: File your Illinois income tax return. You can find official forms and instructions on the Illinois Department of Revenue website.
• Step 4: Use free filing tools if you need help.
• Step 5: Make sure to claim the EITC on your return.

Illinois Child Tax Credit (CTC): New for 2025

For the first time, Illinois is offering a state-level Child Tax Credit. This credit gives up to $300 per child under age 12 to eligible families. Like the EITC, the CTC is available to ITIN filers if they meet the other requirements.

Eligibility for Illinois CTC (2025):

• Amount: Up to $300 per child under 12.
• Immigrants with ITINs: Can claim the credit if they meet the income and residency requirements.
• Income Limits: Generally the same as the EITC, but check the Illinois Department of Revenue for exact details.
• Tax Filing: You must file an Illinois income tax return.

Why This Matters for Immigrants

The Illinois Child Tax Credit provides direct cash support to families with young children. This helps cover the costs of raising children and can make a big difference for families struggling to make ends meet. Families can claim both the EITC and the CTC, which means even more support is available.

Governor Pritzker and the Illinois Department of Revenue are encouraging all eligible families to claim the CTC, saying it plays a key role in reducing poverty and supporting local communities. The CTC is fully in place for the 2025 tax year, and there are no pending changes as of July 10, 2025.

How to Claim the Illinois CTC

• Step 1: Check if you meet the income, residency, and child age requirements.
• Step 2: Gather your ITIN or SSN, proof of income, and details about your children.
• Step 3: File your Illinois income tax return and claim the CTC.

Illinois Gives Tax Credit: New Charitable Giving Incentive

The Illinois Gives Tax Credit is a new program for 2025. It gives a 25% tax credit for donations to approved community foundation endowment funds. This is available to all Illinois taxpayers, including immigrants with an ITIN or SSN.

Eligibility for Illinois Gives Tax Credit (2025):

• Who Can Claim: Any Illinois taxpayer with a valid tax identification number (ITIN or SSN).
• Credit Amount: 25% of your donation, up to $100,000 per taxpayer per year.
• Program Limits: The state will award up to $5 million in tax credits each year. Credits are given out on a first-come, first-served basis.
• Effective Date: For tax years ending on or after December 31, 2025.

Why This Matters for Immigrants

This credit encourages charitable giving to community foundations that support local charities and scholarships. Immigrants who want to support their communities can now get a tax benefit for their donations. Because the credits are limited, it’s important to act early if you want to claim this benefit.

The Quad Cities Community Foundation advises donors to start working with their foundation now to take advantage of this opportunity. The Illinois Department of Revenue says you must have a MyTax Illinois account to apply for the credit.

How to Claim the Illinois Gives Tax Credit

• Step 1: Make a donation to an approved community foundation endowment fund.
• Step 2: Get a Certificate of Receipt from the foundation.
• Step 3: Apply for the credit using your MyTax Illinois account.
• Step 4: Claim the credit on your Illinois income tax return.

Background: Why These Changes Matter

The federal Earned Income Tax Credit does not allow ITIN filers to claim the credit. Illinois, however, has chosen to include ITIN filers, recognizing the important role immigrant workers play in the state’s economy. Illinois has also lowered the minimum age for EITC eligibility to 18 and expanded the credit to those 65 and older, making the program even more inclusive.

The new Child Tax Credit is another step forward, joining a growing number of states that offer this benefit. According to analysis by VisaVerge.com, these changes make Illinois one of the most welcoming states for immigrants when it comes to tax benefits.

Expert Perspectives

Groups like Economic Security Illinois say these expanded tax credits help reduce poverty, support local economies, and provide real relief to working families. The Illinois Department of Revenue stresses the importance of checking your eligibility and using free filing tools to get the most out of these programs. Community foundations encourage early action to secure limited tax credits for charitable giving.

What About Pending Applications and Future Changes?

• EITC and CTC: Both credits are fully available for the 2025 tax year. There are no major legislative changes pending as of July 10, 2025.
• Illinois Gives Tax Credit: This program is new for 2025. There is a $5 million limit on credits each year, so credits may run out if demand is high. Future years may see changes based on how popular the program is.

Summary Table: Key Tax Credits for Immigrants in Illinois (2025)

Official Resources and Where to Get Help

• Illinois Department of Revenue: tax.illinois.gov – Find forms, instructions, and free filing tools.
• Economic Security Illinois: economicsecurityproject.org – Advocacy and policy updates.
• Quad Cities Community Foundation: qccommunityfoundation.org – Information on charitable giving and the Illinois Gives Tax Credit.

Immediate Next Steps for Immigrants and Families

1. Review your eligibility for the Illinois Earned Income Tax Credit and Child Tax Credit, especially if you file taxes with an ITIN.
2. Gather all necessary documents before tax season, including your ITIN, proof of income, and information about your children.
3. Plan to file your Illinois income tax return for the 2025 tax year, even if you do not owe any tax, to claim these credits.
4. Consider making a charitable donation to an approved community foundation if you want to claim the Illinois Gives Tax Credit. Act early, as credits are limited.
5. Use official resources like the Illinois Department of Revenue website for up-to-date information and free filing help.

Illinois has taken big steps to make sure immigrants, including those with an Individual Taxpayer Identification Number, can access important tax benefits. These changes can provide real financial support for working families and help build stronger communities across the state. By understanding these updates and taking the right steps, immigrants and their families can make the most of the new opportunities available in 2025.

Learn Today

Illinois Earned Income Tax Credit (EITC) → A refundable tax credit for low- and moderate-income workers filing Illinois state taxes.
Individual Taxpayer Identification Number (ITIN) → A tax processing number issued to immigrants without a Social Security Number for filing taxes.
Illinois Child Tax Credit (CTC) → A new Illinois tax credit providing up to $300 per child under age 12 to eligible families.
Illinois Gives Tax Credit → A 25% tax credit on donations to approved community foundation funds, available to all taxpayers.
Residency → Living legally in Illinois for the entire tax year to meet credit eligibility requirements.

This Article in a Nutshell

Illinois expands 2025 tax credits for immigrants using ITINs, including earned income and new child tax credits. New charitable giving credits promote community support. These inclusive changes help families claim significant benefits and encourage timely tax filing to maximize financial relief for working families across Illinois.
— By VisaVerge.com