Tax Benefits and Credits for Immigrants in Ohio in 2025

Key Takeaways

• Ohio increased state EITC from 30% to 40% of federal amount starting tax year 2025.
• Only U.S. citizens or resident aliens with valid SSNs qualify for Ohio EITC and federal CTC.
• Opportunity Zone Tax Credit offers immigrant investors a 10% non-refundable credit up to $2 million.

As of July 11, 2025, important updates have been made to the tax benefits and credits available to immigrants living in Ohio. These changes affect the state Earned Income Tax Credit (EITC), eligibility for the federal Child Tax Credit (CTC), and other state-level programs that can help immigrant families and individuals. This update explains what has changed, who is affected, when the changes take effect, what actions are needed, and what these updates mean for pending applications and future tax filings.

Summary of What Changed

The most significant change for 2025 is that Ohio has increased its state Earned Income Tax Credit (EITC) from 30% to 40% of the federal EITC amount. This means that eligible taxpayers, including qualifying immigrants, can now receive a larger refundable credit from the state, in addition to the federal EITC. The state EITC remains refundable, so even if you owe no state income tax, you may still get a refund.

There are no new state-level child tax credits in Ohio, but the state continues to follow federal rules for the Child Tax Credit (CTC). Other programs, such as the Ohio Opportunity Zone Tax Credit, remain available and may benefit immigrant entrepreneurs and investors.

Who Is Affected

These updates mainly affect immigrants in Ohio who are:

• U.S. citizens or resident aliens (such as green card holders or those who meet the IRS residency test)
• Have valid Social Security numbers (SSNs) for themselves, their spouses (if filing jointly), and any qualifying children
• Earn income from work or investments in Ohio

Undocumented immigrants or those without valid SSNs are not eligible for the state EITC, federal EITC, or federal CTC under current law. This exclusion continues in 2025.

Effective Dates

• The new 40% rate for the Ohio EITC applies to tax year 2025 and beyond.
• Other program rules and eligibility requirements remain in effect as of July 11, 2025.

Required Actions

To claim these tax benefits and credits, immigrants in Ohio should:

1. Check Residency Status: Make sure you are a U.S. citizen or meet the IRS definition of a resident alien. Resident aliens include green card holders and others who pass the IRS “substantial presence” test.
2. Obtain Valid SSNs: Ensure you, your spouse, and any qualifying children have valid Social Security numbers. Without valid SSNs, you cannot claim the EITC or CTC.
3. File Federal and State Tax Returns: Use the correct filing status—”Single,” “Married Filing Jointly,” or “Head of Household.” Do not use “Married Filing Separately” if you want to claim the EITC.
4. Claim Federal EITC and CTC: Use IRS forms and tools to claim these credits. For the EITC, check eligibility using the IRS EITC Qualification Assistant.
5. Claim Ohio EITC: Calculate 40% of your federal EITC and claim it on your Ohio state tax return. The Ohio Department of Taxation provides forms and instructions on their official website.
6. Explore Other Credits: If you are an investor or entrepreneur, consider the Ohio Opportunity Zone Tax Credit. If you receive retirement income, check if you qualify for retirement income credits.
7. Seek Help If Needed: Use resources like Ohio Legal Help or trusted tax preparation services that understand immigrant tax issues.

Implications for Pending Applications

If you have already filed your 2025 tax return before July 11, 2025, and did not claim the increased Ohio EITC, you may need to file an amended return to receive the higher credit. If you are preparing to file, make sure to use the updated 40% rate for the Ohio EITC. For other credits, follow the most recent instructions and eligibility rules.

Detailed Overview of Tax Benefits and Credits for Immigrants in Ohio (2025)

Ohio State Earned Income Tax Credit (EITC)

What Is the Ohio EITC?
The Ohio EITC is a state tax credit designed to help low- and moderate-income workers. It is based on a percentage of the federal EITC. In 2025, the Ohio EITC is 40% of the federal EITC amount. This is an increase from the previous 30% rate in 2024.

Who Can Get the Ohio EITC?
– You must qualify for the federal EITC.
– You must be a U.S. citizen or a resident alien (such as a green card holder or someone who meets the IRS residency test).
– You, your spouse (if filing jointly), and any qualifying children must all have valid SSNs.
– You must file a tax return using one of the allowed filing statuses.

Who Cannot Get the Ohio EITC?
– Undocumented immigrants without valid SSNs are not eligible.
– People who file as “Married Filing Separately” are not eligible.

How Much Can You Get?
– The amount depends on your income, marital status, and number of qualifying children.
– For example, if your federal EITC is $3,000, your Ohio EITC would be $1,200 (40% of $3,000).

Why Is This Important?
The Ohio EITC can provide a significant financial boost to working immigrant families. Because it is refundable, you can get money back even if you owe no state income tax.

Federal Child Tax Credit (CTC) and Ohio

What Is the Child Tax Credit?
The federal CTC helps families with children by reducing the amount of tax owed and, in some cases, providing a refund.

Who Can Get the CTC?
– You must be a U.S. citizen or resident alien.
– Your child must have a valid SSN.
– You must have a valid SSN.

Does Ohio Have a Separate CTC?
No, Ohio does not have its own child tax credit. However, the state follows federal rules for any child-related tax benefits.

Who Cannot Get the CTC?
– Undocumented immigrants or those without valid SSNs for themselves or their children are not eligible.

How Much Can You Get?
– The amount varies based on income and number of qualifying children. The federal government sets the exact amount each year.

Other Ohio State-Level Tax Credits and Programs

Ohio Opportunity Zone Tax Credit
– This program encourages investment in certain areas called Opportunity Zones.
– Immigrant entrepreneurs and investors can get a non-refundable tax credit equal to 10% of their investment, up to $2 million during the 2026-2027 period.
– This credit is more useful for business owners and investors than for wage-earning workers.

Retirement Income and Lump Sum Retirement Credits
– These credits are for people who receive retirement income and have total income under $100,000.
– The maximum credit is $200.
– These credits are not specific to immigrants but are available to anyone who meets the requirements.

Summary Table: Key Tax Benefits for Immigrants in Ohio (2025)

Recent Developments and Policy Perspectives

• Ohio’s state EITC increase: The jump from 30% to 40% of the federal EITC shows Ohio’s commitment to helping low-income working families, including immigrants who qualify.
• Eligibility limits: Only immigrants with valid SSNs and proper residency status can claim these credits. Undocumented immigrants remain excluded.
• Advocacy for broader inclusion: Some groups are pushing for changes to allow undocumented immigrants to access refundable credits, but as of July 2025, no new laws have been passed in Ohio.
• Opportunity Zone program: The latest round of applications opened on July 10, 2025, giving immigrant investors a chance to benefit from this program.

Step-by-Step: How Immigrants Can Access Tax Benefits in Ohio (2025)

1. Confirm Your Residency Status
– Are you a U.S. citizen or a resident alien? Resident aliens include green card holders and those who meet the IRS residency test.

2. Make Sure You Have Valid SSNs
– You, your spouse, and your children (if claiming them) must all have valid Social Security numbers.

3. File Your Tax Returns
– File both federal and Ohio state tax returns.
– Use the correct filing status. Do not use “Married Filing Separately” if you want to claim the EITC.

4. Claim the Federal EITC and CTC
– Use the IRS EITC Qualification Assistant to check if you qualify.
– Claim the Child Tax Credit if you and your children have valid SSNs.

5. Claim the Ohio EITC
– Calculate 40% of your federal EITC and enter it on your Ohio tax return.

6. Check for Other Credits
– If you are an investor, look into the Ohio Opportunity Zone Tax Credit.
– If you receive retirement income, see if you qualify for retirement income credits.

7. Get Help If Needed
– Use resources like Ohio Legal Help or trusted tax preparation services.

Official Resources for More Information

• Ohio Department of Taxation: tax.ohio.gov
• IRS EITC Qualification Assistant: irs.gov/credits-deductions/individuals/earned-income-tax-credit/who-qualifies-for-the-earned-income-tax-credit-eitc
• Ohio Opportunity Zones Program: development.ohio.gov/business/state-incentives/ohio-opportunity-zones

Implications for Immigrant Families and Communities

The increase in Ohio’s state EITC means that working immigrant families who qualify can receive more money back at tax time. This can help pay for basic needs, support children’s education, or cover unexpected expenses. However, the strict requirement for valid SSNs means that many undocumented immigrants are still left out. According to analysis by VisaVerge.com, expanding eligibility for these credits could help millions of families, but current Ohio law has not changed to include undocumented immigrants.

For immigrant entrepreneurs, the Opportunity Zone Tax Credit offers a way to support community development while receiving a tax benefit. This can help create jobs and improve neighborhoods, which benefits both immigrants and the wider Ohio community.

What Should You Do Next?

• If you are eligible: Gather your documents, make sure you have valid SSNs, and prepare to file your 2025 tax returns using the new Ohio EITC rate.
• If you are not sure about your status: Use the IRS tools or contact a trusted tax advisor or legal help service.
• If you are an investor or business owner: Look into the Opportunity Zone program for possible tax credits.
• If you are undocumented: Current law does not allow you to claim these credits, but you can still seek legal advice about your options.

Key Takeaways

• Ohio’s state EITC is now 40% of the federal EITC for 2025 and beyond.
• Only U.S. citizens and resident aliens with valid SSNs can claim the EITC and CTC.
• Undocumented immigrants without valid SSNs remain ineligible for these credits.
• Other credits, like the Opportunity Zone Tax Credit, may benefit immigrant investors.
• Use official resources and trusted help to make sure you get all the credits you qualify for.

By following these steps and staying informed about changes, immigrants in Ohio can make the most of available tax benefits and credits. For more details and the latest updates, visit the Ohio Department of Taxation’s official website.

Learn Today

Earned Income Tax Credit (EITC) → A refundable tax credit for low- to moderate-income workers, based on earnings and family size.
Resident Alien → A non-citizen who meets IRS criteria to be taxed like a U.S. citizen, including green card holders.
Social Security Number (SSN) → A unique identifier issued by the U.S. government used for tax reporting and eligibility verification.
Child Tax Credit (CTC) → A federal tax credit reducing taxes owed for families with qualifying children with valid SSNs.
Opportunity Zone Tax Credit → A state credit encouraging investments in designated areas to promote economic development and job creation.

This Article in a Nutshell

Ohio’s 2025 tax updates boost immigrant financial aid, raising state EITC to 40% of federal credit. Valid SSNs are required to claim benefits. Investor-friendly Opportunity Zone credits remain. These changes improve tax refunds but exclude undocumented immigrants, emphasizing legal status importance for accessing vital tax credits and supports.
— By VisaVerge.com