Schedule IL-E/EITC (IL-1040)

This article explains what the Illinois Schedule IL-E/EITC is and provides detailed, line-by-line instructions for completing it accurately when filing your Illinois individual income tax return (Form IL-1040).

Schedule IL-E/EITC, officially titled “Illinois Exemption and Earned Income Tax Credit,” is a tax form used by Illinois taxpayers to claim dependent exemptions, the Illinois Earned Income Tax Credit (EITC), and the Illinois Child Tax Credit. It is attached to your main state income tax return, Form IL-1040.

This schedule serves two major purposes:

  1. Dependent Exemptions:
    It allows taxpayers to list and claim dependents. For 2026, each dependent is worth a $2,775 exemption that reduces your taxable income.
  2. State EITC and Child Tax Credit:
    It determines your eligibility for the Illinois Earned Income Tax Credit—a refundable credit based on your earned income—and, if applicable, the new Illinois Child Tax Credit for taxpayers with at least one dependent child under 12 years old.

Even if you do not qualify for the federal EITC, you may still qualify for the Illinois EITC if you meet federal income guidelines but file with an Individual Taxpayer Identification Number (ITIN) or meet other Illinois-specific requirements.

The total of your EITC and Child Tax Credit can exceed your tax owed, meaning you could receive a refund even if you owe nothing. Fraudulent claims, however, can result in a 10-year disqualification and penalties under the Illinois Income Tax Act.

How To File Schedule IL-E/EITC (IL-1040)

  1. Download the form: Get the latest Schedule IL-E/EITC from the Illinois Department of Revenue’s website.
  2. Attach it: Submit it along with your Form IL-1040 (or Form IL-1040-X if amended).
  3. Include supporting documents: Attach pages 1 and 2 of your federal Form 1040 or 1040-SR if claiming the Illinois EITC.
  4. File electronically: Illinois encourages e-filing. The form is available in digital-only format.
How To Complete Schedule IL-EEITC

How To Complete Schedule IL-E/EITC

Below are clear, concise, and SEO-optimized instructions for every line and step on the 2026 form.

Step 1: Provide The Following Information

  • Your Name and Social Security Number:
    Enter exactly as shown on your Form IL-1040. Ensure accuracy—errors here may delay processing.

Step 2: Illinois Dependent Exemption Allowance

Complete this section only if you are claiming dependents.

  1. Dependent Information Table:
    For each dependent, fill in:
    • First and last name
    • Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
    • Relationship to you
    • Date of birth (MM/DD/YYYY)
    • Check if the dependent is a full-time student or person with a disability
    • Enter the number of months the dependent lived with you
    • Check if they are eligible for the Earned Income Credit
    If claiming more than 10 dependents, attach an additional sheet.
  2. Calculate Dependent Exemption:
    Multiply the number of dependents by $2,775.
    • Enter the total on Line 1 of this schedule and on Form IL-1040, Line 10d.

Step 3: Qualifying Child Information (For EITC)

Complete this section only if you qualify for the Illinois EITC and have a qualifying child not already listed in Step 2.

For each qualifying child, provide:

  • First and last name
  • SSN or ITIN
  • Relationship to you
  • Date of birth
  • Indicate if they are a full-time student or a person with a disability
  • Enter the number of months they lived with you

Then complete Lines 1–4:

  1. Wages, Salaries, and Tips:
    From federal Form 1040 or 1040-SR, Line 1z.
  2. Business Income or Loss:
    From Schedule 1 (Form 1040 or 1040-SR), Line 3.
  3. Federal Adjusted Gross Income (AGI):
    If married filing jointly federally but separately for Illinois, enter AGI from Form 1040, Line 11. 3a. Spouse’s SSN: If Line 3 applies, enter your spouse’s SSN.
  4. Statutory Employee Box:
    Check “Yes” if the Box 13 “Statutory Employee” is marked on your W-2.

Step 4: Figure Your Illinois Earned Income Tax Credit

This step calculates your Illinois EITC.

  1. Determine Eligibility:
    Check all that apply:
    • (a) You have an ITIN and didn’t qualify for federal EITC.
    • (b) You didn’t meet federal age requirements.
    • (c) You have children with ITINs who didn’t qualify for federal EITC.
    • (d) You qualified federally but have additional ITIN children.
    → If any apply, complete the Illinois Expanded EITC Worksheet (Pages 3–4).
  2. Federal EITC Amount:
    Enter from federal Form 1040, Line 27, or Worksheet Line 23.
  3. Multiply by 20% (0.2):
    This equals your preliminary Illinois EITC.
  4. Residency Adjustment:
    • Enter 1.0 if you are an Illinois resident.
    • Nonresidents and part-year residents: Enter the decimal from Schedule NR, Line 48.
  5. Final Illinois EITC:
    Multiply Line 7 by Line 8.
    Enter on this line and on Form IL-1040, Line 29.

Step 5: Figure Your Illinois Child Tax Credit

Complete this step only if you qualify for the Illinois EITC and have at least one dependent under 12 years old.

  1. Eligibility Box:
    Check if you have a qualifying dependent under 12 as of December 31, 2024.
  2. Illinois EITC Amount:
    Copy from Step 4, Line 9.
  3. Child Tax Credit:
    Multiply Line 11 by 20% (0.2).
    Enter this total here and on Form IL-1040, Line 30.

Illinois Expanded EITC Worksheet (Pages 3–4)

Complete only if you checked a box in Step 4, Line 5.

Part 1 – Your Earned Income

  1. Wages, salaries, tips (Form 1040, Line 1z)
  2. Medicaid waiver payments excluded from income (Line 1d)
  3. Subtract Line 2 from Line 1
  4. Add nontaxable combat pay (Line 1i) if elected
  5. Add Lines 3 + 4; go to Line 15 if not self-employed

Part 2 – For Self-Employed, Clergy, or Church Employees (Schedule SE Filers)

6–10. Follow the federal Schedule SE lines (3, 4b, 5a, 13) to compute your adjusted self-employment income.

Part 3 – Self-Employed Without Schedule SE or Statutory Employees

  1. Net farm profit/loss (Schedule F or K-1, Code A)
  2. Net profit/loss from business (Schedule C or K-1, Code A)
  3. Wages as a statutory employee (Schedule C, Line 1)

Part 4 – Total Earned Income

  1. Add Lines 10–13
  2. Add Lines 5 + 14; if zero or negative, enter “0”

Part 5 – Do You Qualify?

2026 Federal EITC Income Limits

Number of Qualifying ChildrenSingle, Head of Household, or WidowedMarried Filing Jointly
0$18,591$25,511
1$49,084$56,004
2$55,768$62,688
3 or more$59,899$66,819

✅ If your income is below these limits: Continue to Part 6 – Your Federal EITC Calculation.
❌ If your income is above these limits: You do not qualify for the Illinois EITC.

Part 6 – Your Federal EITC Calculation

  1. Enter total earned income (from Line 15).
  2. Use the EIC Table in the federal Form 1040 instructions to find your credit.
  3. Enter AGI (Form 1040, Line 11).
  4. If Lines 17 and 19 are the same → copy Line 18 to Line 23.
    21–23. If not, check income thresholds. Compare EITC values and enter the smaller one on Line 23.
  • This Line 23 amount is your federal EITC calculation.
  • Copy it to Page 2, Step 4, Line 6.

Final Tips for Filing

  • Always double-check Social Security and ITIN entries.
  • Attach all required pages of your federal return.
  • Keep copies of all forms for at least three years.
  • Electronic filing is faster and reduces errors.
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