Tax Credits

Information regarding Earned Income Credit (EIC); Child Tax Credit (CTC); Circuit Breaker; Education Tax Credit; Illinois Earned Income Tax Credit; Illinois Property Tax Relief

Earned Income Credit (EIC)

The Earned Income Credit (also called the Earned Income Tax Credit) is a federal program that provides a tax credit and frequently a cash payment to low-to-moderate income workers who qualify. You receive this credit at the time you file for your tax return. If you think you qualified for this credit in prior years and did not apply for it you can also apply to receive back tax credits.

This credit can be claimed once a year at tax time or you can receive this credit in advance and have it be included with each paycheck.

More information: http://www.irs.gov/individuals/article/0,,id=96406,00.html

Child Tax Credit (CTC)

The Child Tax Credit is a federal program that provides a tax credit to parents or caretakers who qualify. You need to have paid someone to care for your child or a qualifying dependent so you (and your spouse if you are married) could work or look for work.

More information: http://www.irs.gov/taxtopics/tc602.html

Circuit Breaker

The Illinois Circuit Breaker program is a grant program rather than a Tax Credit. The Illinois Department on Aging manages the Circuit Breaker program which provides grants to senior citizens and persons with disabilities to help reduce the financial impact taxes and prescription medications have on your life, as well as a grant to offset the high cost of license plates.

More information: http://www.state.il.us/aging/1rx/cbrx/cbrx-main.htm

Education Tax Credit

If you or a dependent attend school you may be able to receive a federal tax credit through either the Hope of Lifetime tax credit. You can receive only one credit at a time. Illinois also provides an Education Tax Credit for certain expenses for you child in Kindergarten through 12th grade.

More information: http://www.irs.gov/individuals/article/0,,id=121452,00.html

Illinois Earned Income Tax Credit

If you claimed an Earned Income Credit (EIC) on your federal return, you also qualify for a credit on your Illinois return. You do not need to have a child to qualify for this credit. There is an Earned Income Credit (EIC) Worksheet in the IL-1040 Instructions to assist you with calculating this credit.

More information: http://tax.illinois.gov/Individuals/Credits/educationexpensecredit.htm

Illinois Property Tax Relief

Illinois has a variety of programs that can provide property tax relief to seniors, persons with disabilities or for disabled veterans. Real estate tax exemptions are deductions from the amount of property taxes homeowners must pay to the city or town where they live.

More information: http://www.revenue.state.il.us/LocalGovernment/PropertyTax/taxrelief.htm

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