Tax Benefits and Credits for Immigrants in Rhode Island 2025

Key Takeaways

• Rhode Island increased the state Earned Income Tax Credit rate to 16% for the 2024 tax year, filed in 2025.
• The credit remains refundable, providing cash refunds if the credit exceeds state tax owed by immigrants.
• Employers can claim the Work Opportunity Tax Credit in 2025 for hiring eligible immigrant employees.

As of July 11, 2025, important updates have been made to tax benefits and credits available to immigrants living and working in Rhode Island. These changes affect the state Earned Income Tax Credit (EITC), the way families can access child tax credits, and other state-level programs that support immigrant households. This update provides a clear summary of what has changed, who is affected, the effective dates, required actions, and the practical implications for immigrants and their families. The goal is to help you understand what these changes mean for your 2025 tax filings and what steps you should take next.

Summary of What Changed

The most significant change for 2025 is the increase in the Rhode Island Earned Income Tax Credit (EITC) rate. The state EITC is now set at 16% of the federal EITC amount, up from 15% in previous years. This means eligible taxpayers, including many immigrants, will receive a larger credit when they file their 2024 taxes in 2025. The state has also reaffirmed that the EITC remains refundable. If your credit is larger than your state tax bill, you will get the extra amount as a cash refund.

There are no new state-level child tax credits for 2025, but families who qualify for the federal child tax credit can still claim it on their federal returns. Other programs, such as the property tax credit for low- and moderate-income homeowners and the Work Opportunity Tax Credit (WOTC) for employers, continue to be available and may benefit immigrants in Rhode Island.

Who Is Affected by These Changes

These updates mainly affect:

• Immigrants who are resident aliens for tax purposes (including lawful permanent residents and those with certain legal statuses)
• Immigrant families with children who may qualify for larger EITC amounts
• Employers who hire immigrants from targeted groups and wish to claim the Work Opportunity Tax Credit
• Low- and moderate-income homeowners, including immigrants, who may qualify for the property tax credit

If you are an immigrant living and working in Rhode Island, especially if you have children or are part of a low-income household, these changes could directly impact your tax refund and overall financial situation.

Effective Dates

• The new 16% EITC rate applies to tax year 2024, which you will file in 2025.
• All other program rules and eligibility requirements are in effect for the 2024 tax year and continue into 2025.
• Employers can claim the Work Opportunity Tax Credit for eligible hires made during 2025.

Required Actions for Immigrants and Employers

To benefit from these programs, you must take specific steps when preparing your taxes or hiring employees. Here’s what you need to do:

For Immigrants Claiming the Rhode Island Earned Income Tax Credit (EITC)

1. Check Your Federal EITC Eligibility
   • You must first qualify for the federal EITC. This depends on your income, family size, and immigration status.
   • Immigrants who are resident aliens for tax purposes, including lawful permanent residents, refugees, asylees, and those with Temporary Protected Status (TPS), Deferred Enforced Departure (DED), or pending asylum applications, may qualify.
   • You must have legal work authorization for yourself and your spouse (if filing jointly) and any children you claim.
2. File Your Federal and State Tax Returns
   • File your federal tax return and claim the federal EITC if eligible.
   • File your Rhode Island state tax return using Form RI-1040 and attach Schedule EIC to claim the state EITC. You can find the official forms and instructions on the Rhode Island Division of Taxation website.
3. Gather and Provide Documentation
   • Keep proof of your legal status, income, and information about your qualifying children.
   • Tax preparers in Rhode Island are required to check your eligibility, so you may need to show documents like your green card, work permit, or other immigration papers.
4. Expect a Refund if Eligible
   • If your Rhode Island EITC is larger than your state tax bill, you will receive the extra amount as a refund. This can provide much-needed cash for your family.
5. Get Help if Needed
   • Free tax preparation help is available through community groups and organizations like the Economic Progress Institute. They can help you understand your eligibility and file your taxes correctly.

For Families Claiming the Child Tax Credit

• Rhode Island does not have a separate state child tax credit. However, if you qualify for the federal child tax credit, you can claim it on your federal tax return.
• To qualify, you and your children must meet federal requirements, including having valid Social Security numbers and legal work authorization.
• The state EITC increases with the number of qualifying children, so families with more children may receive a larger credit.

For Employers Claiming the Work Opportunity Tax Credit (WOTC)

1. Identify Eligible Employees
   • The WOTC is a federal program that gives employers a tax credit for hiring people from certain groups, including some immigrants (such as refugees and asylees).
2. Complete the Required Forms
   • Fill out IRS Form 8850 and ETA Form 9061 or 9062 when hiring a new employee from a targeted group.
   • Submit these forms to the Rhode Island Department of Labor and Training for certification. You can find more information and forms on the Department of Labor and Training website.
3. Claim the Credit
   • Once certified, claim the WOTC on your federal tax return.

For Homeowners Claiming the Property Tax Credit

• If you are a low- or moderate-income homeowner, you may qualify for the property tax credit (Form RI-1040H).
• This credit is available to all eligible residents, including immigrants, and can help reduce your property tax burden.

Eligibility Details for the Rhode Island EITC

To claim the Rhode Island EITC in 2025, you must meet the following requirements:

• Residency: You must be a resident of Rhode Island for at least part of the year.
• Immigration Status: You must be a resident alien for tax purposes, which generally means you have a green card or have lived in the United States 🇺🇸 for at least six months. Non-permanent residents with legal work authorization (such as refugees, asylees, TPS, DED, or pending asylum applicants) can also qualify.
• Income Limits: Your income must fall below certain limits, which are the same as the federal EITC limits. For 2024 (filing in 2025), the limits are:
  • 1 child: Up to $49,084 (single) or $56,004 (married filing jointly)
  • 2 children: Up to $55,768 (single) or $62,688 (married filing jointly)
  • 3 or more children: Up to $59,899 (single) or $66,819 (married filing jointly)
  • No children (ages 25-64): Up to $18,591 (single) or $25,511 (married filing jointly)
• Credit Amounts: The maximum Rhode Island EITC you can receive is 16% of the federal EITC amount. For example:
  • 1 child: Up to $674
  • 2 children: Up to $1,114
  • 3 or more children: Up to $1,253
  • No children: Up to $101
• Qualifying Children: Children must be under 19 (or under 24 if full-time students). Disabled children of any age qualify. Qualifying children can include biological children, stepchildren, grandchildren, nieces, nephews, foster children, or children you care for as family.

Implications for Pending Applications and Tax Filings

If you have already filed your 2024 taxes before July 11, 2025, and did not claim the increased EITC rate, you may be able to file an amended return to receive the additional benefit. If you are preparing to file, make sure you use the updated forms and claim the full 16% state EITC.

Employers who have hired eligible immigrants in 2025 should ensure they have completed and submitted the necessary forms for the Work Opportunity Tax Credit. If you missed the deadline, contact the Rhode Island Department of Labor and Training for guidance.

Practical Implications for Immigrants and Families

The increase in the Rhode Island EITC rate means more money in the pockets of working immigrant families. Because the credit is refundable, even those who owe little or no state income tax can receive a cash refund. This is especially important for families with children, as the credit amount grows with each qualifying child.

For many immigrants, these tax credits can help cover basic needs like rent, food, and childcare. The property tax credit can also make homeownership more affordable for low- and moderate-income families, including immigrants.

Employers who use the Work Opportunity Tax Credit may be more likely to hire immigrants from targeted groups, increasing job opportunities and supporting economic inclusion.

Background and Policy Context

Rhode Island has a long history of aligning its EITC with federal rules to maximize support for low-income workers. The state’s decision to increase the EITC rate to 16% in 2025 reflects a commitment to helping families cope with rising living costs and inflation. The refundable nature of the credit, in place since 2015, ensures that even the lowest-income households receive the full benefit.

Over time, Rhode Island has expanded EITC eligibility to include a wider range of immigrant statuses, not just permanent residents. This approach supports the state’s diverse workforce and recognizes the important role immigrants play in the local economy.

Expert and Stakeholder Perspectives

Advocacy groups like the Economic Progress Institute have praised the EITC and child-related credits for their role in reducing poverty among immigrant families. State officials have supported the 2025 EITC increase as a way to help working families, including immigrants, manage higher living expenses.

Employers also benefit from the Work Opportunity Tax Credit, which encourages them to hire immigrants with legal work authorization. This helps promote economic inclusion and supports the integration of immigrants into the workforce.

Official Resources and Where to Get Help

For more information and official forms, visit the Rhode Island Division of Taxation website. Here you can find:

• State tax forms and instructions (including Form RI-1040, Schedule EIC, and Form RI-1040H)
• Guidance on eligibility and documentation requirements
• Contact information for personalized assistance

Employers can find details about the Work Opportunity Tax Credit on the Rhode Island Department of Labor and Training website.

Community organizations like the Economic Progress Institute offer free help with tax preparation and can answer questions about eligibility for immigrants.

Future Outlook and Pending Developments

No new immigrant-specific tax credits have been announced for 2025 beyond the EITC rate increase. However, state lawmakers and advocacy groups continue to monitor the situation and may propose further changes to support immigrant families in the future. Efforts are also underway to expand affordable housing credits and make it easier for immigrants to access tax benefits.

Key Takeaways and Next Steps

• Rhode Island’s EITC rate is now 16% of the federal EITC. This means more money for eligible immigrants and their families.
• The credit is refundable, so you can get a cash refund even if you owe little or no state tax.
• No separate state child tax credit exists, but you can still claim the federal child tax credit if eligible.
• Employers can claim the Work Opportunity Tax Credit for hiring certain immigrants, increasing job opportunities.
• Gather your documents, file your taxes on time, and seek help if needed to make sure you get all the benefits you qualify for.

As reported by VisaVerge.com, these updates show Rhode Island’s ongoing commitment to supporting immigrant workers and families through practical, accessible tax benefits. For the most current information, always check official state resources and consult with a trusted tax preparer or community organization.

By understanding these changes and taking the right steps, immigrants in Rhode Island can make the most of the tax benefits available in 2025, helping to build a more secure and stable future for themselves and their families.

Learn Today

Earned Income Tax Credit (EITC) → A refundable tax credit for low- to moderate-income workers to reduce tax liability or receive a refund.
Resident Alien for Tax Purposes → A non-U.S. citizen who meets IRS criteria to be taxed as a U.S. resident on worldwide income.
Work Opportunity Tax Credit (WOTC) → A federal credit for employers hiring from targeted groups, including some immigrant statuses like refugees.
Refundable Credit → A tax credit that can provide a refund if it exceeds the taxpayer’s total tax owed.
Schedule EIC → The tax form used in Rhode Island to claim the state Earned Income Tax Credit.

This Article in a Nutshell

Rhode Island raised its Earned Income Tax Credit to 16% for 2025 filings, benefiting immigrant families. Refundable credits support low-income households, and employers gain incentives through the Work Opportunity Tax Credit, enhancing job opportunities and financial stability for immigrant communities statewide.
— By VisaVerge.com