Tax season has begun as federal and state W-2 forms arrive in the mail, but according to the Illinois Department of Revenue (IDOR), thousands of eligible taxpayers fail to claim both the Illinois Earned Income Credit (EIC) and the Federal Earned Income Tax Credit (EITC).
IDOR acting Director David Harris says those taxpayers are missing out on thousands of dollars.
Anyone eligible for the federal EITC automatically qualifies for the Illinois EIC, which is a refundable tax credit worth up to 18 percent of a taxpayer’s federal claim. However, IDOR says nearly 20,000 Illinoisans claimed a federal EITC credit without also claiming the state EIC, leaving more than $5 million unclaimed.
To be eligible for the tax credit programs, taxpayers must meet certain income and residency qualifications and file a tax return, even if they do not owe any tax or are not required to file. To find out if your family qualifies for the credit, visit the Internal Revenue Service’s EITC Assistant.