Key Takeaways
• Kentucky’s Earned Income Tax Credit offers 25% of the federal EITC amount in 2025 for eligible immigrants.
• Claiming credits requires valid SSNs; ITIN holders and undocumented immigrants generally do not qualify.
• Federal child tax credit provides $2,200 per qualifying child under 17 in 2025 for families with SSNs.
Immigrants living and working in Kentucky in 2025 have access to several important tax benefits. These include The Kentucky Earned Income Tax Credit, the federal child tax credit, and other state-level programs that can help reduce tax bills and put more money back in families’ pockets. Understanding how to claim these credits, who qualifies, and what steps to take is key for immigrant families who want to make the most of their tax returns. This guide walks you through the entire process, step by step, so you know what to expect and how to prepare.
Let’s start with an overview of the journey, then break down each stage, including estimated timeframes, required actions, and what you can expect from tax authorities along the way.

Overview of the Tax Benefits Journey for Immigrants in Kentucky
The process of claiming tax credits as an immigrant in Kentucky involves several main steps:
- Checking eligibility for each credit (especially the Kentucky Earned Income Tax Credit and the child tax credit)
- Gathering the right documents (like Social Security Numbers and proof of income)
- Filing federal and state tax returns with the correct forms attached
- Waiting for review and processing by tax authorities
- Receiving refunds or credits, if eligible
Each step has its own requirements and timeframes. Let’s look at each one in detail.
Step 1: Checking Eligibility for the Kentucky Earned Income Tax Credit (EITC)
The Kentucky Earned Income Tax Credit is a major benefit for low- and moderate-income workers. In 2025, Kentucky’s EITC is set at 25% of the federal EITC amount. This means if you qualify for the federal EITC, you can get an extra 25% of that amount from Kentucky. The credit is refundable, so you can get money back even if you owe no state income tax.
Who is eligible?
– You must have earned income from a job or self-employment.
– Your investment income must be below the IRS limit.
– You, your spouse (if filing jointly), and any children you claim must all have valid Social Security Numbers (SSNs).
– You must be a U.S. citizen or a resident alien for the entire tax year.
– You cannot file Form 2555 (Foreign Earned Income).
– You must meet certain residency and filing status rules.
Important: If you only have an Individual Taxpayer Identification Number (ITIN), you are not eligible for the federal or Kentucky EITC. This means many undocumented immigrants and some legal immigrants without SSNs cannot claim this credit. However, if you are a lawful resident with an SSN, you can apply.
Estimated timeframe:
– Checking eligibility can usually be done in a few days, especially if you already have your SSN and income information.
What to do:
– Make sure you and your family members have valid SSNs.
– Review the IRS EITC rules here to see if you qualify.
– If you’re unsure, talk to a tax professional or visit a free tax help center.
Step 2: Checking Eligibility for the Child Tax Credit (CTC)
The federal child tax credit is another important benefit. In 2025, the credit is $2,200 per qualifying child under age 17. This amount is higher than in previous years and will be adjusted for inflation in the future.
Who is eligible?
– You must have a valid SSN if filing singly. If you’re married and filing jointly, only one parent needs an SSN.
– The child you claim must have a valid SSN and must have lived with you for at least six months in 2025.
– Mixed-status families (where one parent has an SSN and the other does not) can still qualify if filing jointly.
– If you are an undocumented single parent without an SSN, you cannot claim the credit, even if your child is a U.S. citizen.
Estimated timeframe:
– Checking eligibility for the child tax credit can be done quickly if you have all SSNs and proof of residency.
What to do:
– Make sure you and your child have valid SSNs.
– Gather proof that your child lived with you for at least six months.
– Review the IRS child tax credit page here for more details.
Step 3: Exploring Other Kentucky State-Level Tax Benefits
Besides the EITC and child tax credit, Kentucky offers other programs that may help immigrant families:
- Kentucky Homestead Exemption:
If you are 65 or older, or permanently and totally disabled, you may qualify for a $49,100 exemption on your home’s assessed value. This reduces your property tax bill. You must be a legal resident and own the property. Credit for the Elderly or Disabled:
If you are a U.S. citizen or lawful resident and are permanently disabled or elderly, you may qualify for a state tax credit. You need to have taxable disability income.Other credits for business owners:
Kentucky offers credits for partners, members, or shareholders of certain businesses. These are usually not tied to immigration status but may be relevant if you own a business.
Estimated timeframe:
– Checking eligibility for these credits may take a few days, especially if you need to gather proof of age, disability, or property ownership.
What to do:
– If you think you qualify, contact the Kentucky Department of Revenue or your local property valuation office for more information.
Step 4: Gathering Required Documents
Before you file your taxes, you’ll need to collect several important documents:
- Social Security Numbers (SSNs): For yourself, your spouse, and any children you plan to claim.
- Proof of income: W-2s, 1099s, or other records of money earned from work or self-employment.
- Proof of residency: Documents showing your address and that your child lived with you (school records, medical records, etc.).
- Proof of age or disability: If applying for the homestead exemption or elderly/disabled credit.
Estimated timeframe:
– Gathering documents can take anywhere from a few days to a few weeks, depending on how organized your records are.
What to do:
– Start early. If you need to apply for an SSN, visit the Social Security Administration here for instructions.
– Keep all tax-related documents in a safe place.
Step 5: Filing Federal and Kentucky State Tax Returns
To claim the Kentucky Earned Income Tax Credit and other benefits, you must file both federal and state tax returns.
Federal Tax Return:
– Use IRS Form 1040.
– Attach Schedule EIC if claiming the federal EITC.
– Attach Schedule 8812 if claiming the child tax credit.
– You can find these forms and instructions on the IRS website.
Kentucky State Tax Return:
– Use Kentucky Form 740 for individual income tax.
– To claim the state EITC, attach Schedule ITC (2025). You can find this form on the Kentucky Department of Revenue website.
Estimated timeframe:
– Preparing and filing your taxes can take a few hours to several days, depending on your situation and whether you use a tax preparer.
What to do:
– Double-check that you have included all required forms and information.
– File your taxes by the deadline (usually April 15).
– If you need help, look for free tax assistance programs in Kentucky, such as Volunteer Income Tax Assistance (VITA).
Step 6: What to Expect from Tax Authorities
After you file your returns, both the IRS and the Kentucky Department of Revenue will review your forms.
Federal Review:
– The IRS checks your eligibility for the EITC and child tax credit.
– If there are questions or missing documents, you may receive a letter asking for more information.
– Refunds for returns claiming the EITC or child tax credit may take longer to process, sometimes up to 21 days or more.
State Review:
– Kentucky reviews your state return and Schedule ITC.
– If everything is correct, you’ll receive your state refund, including the EITC portion.
– If there are problems, you may get a letter asking for more details.
Estimated timeframe:
– Federal refunds: Usually within 21 days, but can take longer if your return is flagged for review.
– Kentucky state refunds: Usually within 2-4 weeks after your return is accepted.
What to do:
– Check the status of your federal refund here.
– Check the status of your Kentucky refund here.
Step 7: Receiving Your Refund or Credit
If you qualify, you’ll receive your refund by direct deposit or check. The Kentucky Earned Income Tax Credit is refundable, so you can get money back even if you owe no state tax. The child tax credit is also refundable up to a certain amount.
What to expect:
– The refund will be sent to the bank account or address you provided.
– If you owe taxes, the credits will first be used to reduce your tax bill, and any extra will be refunded to you.
Step 8: Staying Informed and Getting Help
Tax laws can change from year to year. It’s important to stay updated on eligibility rules, especially for immigrant families.
Where to get help:
– Kentucky Department of Revenue: For state forms, instructions, and help with Schedule ITC (2025).
– IRS: For federal EITC and child tax credit rules.
– Local tax assistance programs: Many offer free help to immigrants and low-income families.
Official government link:
For the most current information on Kentucky tax credits and forms, visit the Kentucky Department of Revenue.
Managing Expectations and Common Questions
Will I qualify if I only have an ITIN?
No. Both the Kentucky Earned Income Tax Credit and the child tax credit require a valid SSN for the parent (or at least one parent if married filing jointly) and the child. ITIN holders are not eligible for these credits.
What if my family is mixed-status?
If you’re married and filing jointly, only one parent needs an SSN to claim the child tax credit. For the EITC, all family members claimed must have SSNs.
How much could I get?
The amount depends on your income, family size, and which credits you qualify for. For example, if you qualify for the maximum federal EITC and have two children, you could receive thousands of dollars from the federal government, plus 25% of that amount from Kentucky.
What if I make a mistake?
If you make a mistake on your tax return, the IRS or Kentucky Department of Revenue will usually send you a letter explaining what needs to be fixed. Respond quickly and provide any requested documents.
Policy Context and Ongoing Debates
Kentucky’s decision to raise its state EITC to 25% of the federal amount shows a commitment to helping low-income workers, including immigrants with SSNs. However, the requirement for SSNs for both the EITC and child tax credit means many undocumented immigrants and ITIN holders are left out. According to analysis by VisaVerge.com, these rules have sparked debate among advocates who want to see more inclusive policies, especially for mixed-status families.
Tax policy experts say that expanding access to these credits could help reduce poverty and support children in immigrant families. For now, though, the rules are clear: SSNs are required for most major tax credits in Kentucky.
Actionable Takeaways for Immigrant Taxpayers in Kentucky
- Get a valid SSN if you are eligible. This is the key to unlocking most tax credits.
- Keep good records of your income, residency, and family members’ SSNs.
- File your taxes on time and use the correct forms, including Schedule ITC for the Kentucky Earned Income Tax Credit.
- Seek help from tax professionals or free assistance programs if you have questions.
- Stay informed about policy changes that could affect your eligibility in future years.
By following these steps and understanding the requirements, immigrant families in Kentucky can take full advantage of the tax benefits available to them in 2025. These credits can make a real difference in your family’s finances, helping you build a more secure future in your new home.
Learn Today
Earned Income Tax Credit (EITC) → A refundable credit for low- to moderate-income workers based on earned income and family size.
Social Security Number (SSN) → A unique nine-digit number issued for tracking earnings and determining eligibility for benefits.
Individual Taxpayer Identification Number (ITIN) → A tax processing number for nonresident and resident aliens without SSNs, not valid for EITC.
Child Tax Credit (CTC) → A federal tax credit providing money per qualifying child under age 17 to eligible families.
Schedule ITC → Kentucky state tax form used to claim the state Earned Income Tax Credit alongside federal forms.
This Article in a Nutshell
In 2025, Kentucky immigrant families with valid SSNs can access tax credits like the Earned Income and Child Tax Credit, easing financial burdens. Proper eligibility checks, document gathering, and filing steps help maximize returns. Understanding these benefits ensures better financial security for many immigrant households in Kentucky.
— By VisaVerge.com