Tax Benefits and Credits for Immigrants in Connecticut in 2025

Key Takeaways

• Connecticut expanded its Earned Income Tax Credit in 2025, adding $250 for taxpayers with qualifying children.
• New state credits start in 2026 for family child care home owners and first-time homebuyers.
• Immigrants must file federal and state returns with valid SSN or ITIN to access tax benefits.

Connecticut has made important changes to its tax benefits and credits for immigrants in 2025. These updates affect The Earned Income Tax Credit (EITC), Child Tax Credit, and other state-level programs. Understanding these changes is important for immigrants and their families living in Connecticut. This update explains what has changed, who is affected, when the changes take effect, what actions are needed, and what these changes mean for people with pending applications.

Summary of What Changed

As of July 10, 2025, immigrants in Connecticut can access several tax benefits and credits. The most important updates include:

• Expansion of the Connecticut Earned Income Tax Credit (CT EITC): Connecticut increased the value of its state EITC and added a new $250 benefit for taxpayers with at least one qualifying child.
• No State-Level Child Tax Credit: Connecticut still does not offer a separate state Child Tax Credit, but other family support programs are available.
• New Credits for Family Child Care Home Owners and First-Time Homebuyers: These credits will start in 2026 and can help immigrants who own family child care homes or are saving to buy their first home.
• Federal and State Eligibility Rules: Eligibility for these credits depends on income, residency, and sometimes immigration status.

Let’s look at each benefit in detail, who can get them, and what steps you need to take.

Connecticut Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is a tax benefit for low- and moderate-income workers. It helps reduce the amount of tax you owe and may give you a refund. There are two types of EITC that immigrants in Connecticut should know about:

1. Federal EITC
2. Connecticut State EITC (CT EITC)

Federal EITC

• Who Can Get It: To qualify, you must have earned income from working and meet certain income limits. You need a valid Social Security Number (SSN). If you are married to a U.S. citizen or resident, you may also qualify with an Individual Taxpayer Identification Number (ITIN).
• How Much: The amount depends on your income, filing status, and number of qualifying children. The more qualifying children you have, the higher the credit.
• Why It Matters: The federal EITC can provide a large refund for working families, especially those with children.

Connecticut State EITC (CT EITC)

• Who Can Get It: You must meet all the federal EITC rules and be a full-year resident of Connecticut.
• How Much: The CT EITC is 40% of your federal EITC. For example, if your federal EITC is $2,000, your CT EITC would be $800.
• New for 2025: Starting January 1, 2025, Connecticut added an extra $250 for taxpayers with at least one qualifying child for federal income tax purposes. This is in addition to the regular CT EITC.
• Why It Matters: This extra money can help families with children pay for basic needs like food, rent, and school supplies.

Who Is Affected by the EITC Changes?

• Immigrants with Work Authorization: If you have a valid SSN and meet the income rules, you can claim both the federal and state EITC.
• Mixed-Status Families: If you are married to a U.S. citizen or resident and have an ITIN, you may still qualify for the federal EITC and, by extension, the CT EITC.
• Full-Year Connecticut Residents: You must live in Connecticut all year to get the CT EITC.

Effective Dates

• CT EITC Expansion: The extra $250 for taxpayers with a qualifying child starts with tax returns filed for the 2025 tax year (filed in 2026).

Required Actions

• File Your Taxes: You must file both federal and Connecticut state tax returns to claim the EITC. Even if you do not owe any tax, you should file to get the refund.
• Use the Right Forms: For federal EITC, use the IRS Form 1040. For the CT EITC, file the Connecticut Resident Income Tax Return (Form CT-1040).
• Get Help if Needed: Free tax help is available through VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) programs.

Implications for Pending Applications

• If You Filed Before July 10, 2025: The new $250 benefit applies to tax returns for the 2025 tax year. If you filed for previous years, you are not eligible for the new benefit.
• If You Are Waiting for Approval: Make sure your application includes all required information, especially proof of residency and qualifying children.

Child Tax Credit

The Child Tax Credit is another important benefit for families with children. Here’s what you need to know:

Federal Child Tax Credit

• Who Can Get It: You must have a qualifying child under age 17 with a valid SSN. You must also meet income limits.
• How Much: Up to $2,000 per child.
• Immigration Status: Only children with valid SSNs qualify. Parents do not need to have SSNs, but must have an ITIN or SSN to file taxes.
• Recent Proposals: Some lawmakers have suggested changing the rules to limit the credit based on immigration status, but as of July 2025, these changes have not become law.

Connecticut State Child Tax Credit

• No Separate State Credit: Connecticut does not have its own Child Tax Credit. However, families can still benefit from the federal credit and other state programs.

Other State-Level Programs

Connecticut has added new credits and programs that can help immigrants and their families. Here are the main ones:

Expansion of EITC

• Extra $250 for Qualifying Children: As mentioned above, this new benefit starts in 2025 and is available to anyone who qualifies for the federal EITC and has at least one qualifying child.

Family Child Care Home Owners Credit

• Who Can Get It: Owners of family child care homes in Connecticut.
• How Much: $500 per family child care home.
• When It Starts: January 1, 2026.
• Who Benefits: This credit is not just for immigrants, but immigrants who own or operate family child care homes can claim it.

First-Time Homebuyer Savings Account Credit

• Who Can Get It: Employers who contribute to employees’ first-time homebuyer savings accounts.
• How Much: Up to 10% of employer contributions, capped at $2,500 per employee per year.
• When It Starts: January 1, 2026.
• Who Benefits: This credit helps immigrants and others saving to buy their first home in Connecticut.

Eligibility and Application Process

Understanding who qualifies for these credits and how to apply is important. Here are the main points:

Eligibility for EITC

• Earned Income: You must have income from working (wages, salary, self-employment).
• Income Limits: Your income must be below certain limits, which change each year. For 2025, check the latest limits on the IRS EITC page.
• Residency: For the CT EITC, you must be a full-year resident of Connecticut.
• Immigration Status: You need a valid SSN or, in some cases, an ITIN if married to a U.S. citizen or resident.

Eligibility for Child Tax Credit

• Qualifying Child: Must be under 17 and have a valid SSN.
• Income Limits: There are income limits for the full credit. The credit phases out at higher incomes.
• Filing Status: You must file a federal tax return.

Application Process

• File Federal and State Tax Returns: Use IRS Form 1040 for federal taxes and CT-1040 for Connecticut state taxes.
• Claim Credits: Follow instructions on the forms to claim the EITC and Child Tax Credit.
• Get Help: Free tax help is available through VITA and TCE. You can also contact the United Way of Connecticut at 860-590-8910 or visit SimplifyCT.org for assistance.

Recent Developments and Future Outlook

Several changes and proposals may affect tax benefits for immigrants in Connecticut:

• COVID Relief Funds: Enhanced COVID relief funds, including some tax credits, expired on April 15, 2025. Families should make sure they have claimed all benefits for previous years.
• Legislative Proposals: Some lawmakers have suggested limiting tax credits based on immigration status, but as of July 2025, no new restrictions have been passed.
• Advocacy Efforts: Community groups are working to make sure all eligible families, including immigrants, know about and claim their tax benefits.

Key Stakeholders and Where to Get Help

If you have questions or need help claiming these credits, several organizations can assist:

• Connecticut Department of Revenue Services: For official information on state tax credits and eligibility, visit the Connecticut Department of Revenue Services.
• United Way of Connecticut: Offers help with tax filing and benefits. Call 860-590-8910 or visit SimplifyCT.org.
• VITA and TCE Programs: Provide free tax help for people who qualify.

Practical Implications for Immigrants

These tax credits and benefits can make a big difference for immigrants in Connecticut. Here’s how:

• More Money for Families: The Earned Income Tax Credit and Child Tax Credit can provide thousands of dollars in refunds, helping families pay for basic needs.
• Support for Child Care Providers: The new credit for family child care home owners helps immigrants who run child care businesses.
• Help for First-Time Homebuyers: The savings account credit encourages employers to help workers save for their first home, making homeownership more possible for immigrants.
• Complex Rules: The rules for these credits can be confusing, especially for people with mixed immigration status or who are new to the tax system. Getting help from trusted organizations is important.

What Should Immigrants in Connecticut Do Now?

1. Check Your Eligibility: Review the income and residency rules for each credit.
2. Gather Documents: Make sure you have your SSN or ITIN, proof of income, and information about your children.
3. File Your Taxes: Even if you do not owe any tax, file your federal and state returns to claim your credits.
4. Ask for Help: Use free tax help services if you have questions or need assistance.
5. Stay Informed: Watch for updates on tax laws and benefits, especially if you have a pending application or your immigration status changes.

Implications for Pending Applications

• If You Are Waiting for a Decision: Make sure your application includes all required documents. If you become eligible for a new credit (like the extra $250 EITC for 2025), you may need to file an amended return or include new information.
• If Your Status Changes: If you get a new SSN or your immigration status changes, update your information with the IRS and Connecticut Department of Revenue Services.

Conclusion and Next Steps

Connecticut’s updates to the Earned Income Tax Credit, Child Tax Credit, and other state programs offer important support for immigrants and their families. The expansion of the CT EITC and new credits for child care providers and first-time homebuyers can help many people achieve greater financial stability.

Immediate Next Steps:

• File your 2025 tax returns on time to claim the new and expanded credits.
• Use official forms and get help if you are unsure about your eligibility.
• Contact the Connecticut Department of Revenue Services or trusted community organizations for guidance.

As reported by VisaVerge.com, staying informed about changes to tax credits and benefits is key for immigrants in Connecticut. For the latest updates and official guidance, visit the Connecticut Department of Revenue Services.

By taking these steps, immigrants in Connecticut can make the most of available tax benefits and build a stronger financial future for themselves and their families.

Learn Today

Earned Income Tax Credit (EITC) → A tax benefit helping low- and moderate-income workers reduce taxes owed or receive refunds.
SSN → Social Security Number, a required identifier for tax filing and eligibility for tax credits.
ITIN → Individual Taxpayer Identification Number, used by certain taxpayers who don’t qualify for an SSN.
Qualifying Child → A child meeting age, relationship, and residency rules required to claim certain tax credits.
Federal EITC → The national Earned Income Tax Credit based on income, filing status, and number of children.

This Article in a Nutshell

Connecticut’s 2025 tax updates boost benefits for immigrants, expanding the EITC and introducing new credits for child care providers and homebuyers. Filing tax returns timely and meeting eligibility requirements can provide crucial financial support, helping immigrant families in Connecticut improve their economic stability and access essential resources.
— By VisaVerge.com