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Illinois Schedule IL-E/EITC – Exemption & Earned Income Tax Credit (2026)

Last reviewed: 2025-11-07

Use the Illinois Tax Form Calculator Form IL-1040 Schedule IL-E/EITC: Earned Income Credit as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Illinois state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Schedule IL-E/EITC is used to claim your Illinois dependent exemption, the Illinois Earned Income Tax Credit (IL-EITC), and, if eligible, the Illinois Child Tax Credit. For 2026, the IL-EITC equals 20% of your Federal EITC, subject to Illinois maximums based on the number of qualifying children. If you have at least one dependent under age 12, Illinois also allows a Child Tax Credit equal to 20% of your IL-EITC.

Who Should Use This Schedule

Complete Schedule IL-E/EITC if you claim dependents on IL-1040, want to claim IL-EITC based on your Federal EITC, or may qualify for the Illinois Child Tax Credit. This schedule commonly appears alongside Schedule ICR (Illinois Credits) and Schedule M (Additions & Subtractions).

How the Illinois Credits Work

Dependent Exemption: Multiply your dependent count by $2,775 to compute your Illinois dependent exemption. This amount reduces Illinois base income when carried to IL-1040.

IL-EITC: Take your Federal EITC and multiply by 20% to get the preliminary IL-EITC, then apply the Illinois maximum based on qualifying children (0: $126, 1: $843, 2: $1,392, 3+: $1,566). Your IL-EITC is the smaller of the two.

Illinois Child Tax Credit: If you have at least one dependent under age 12, multiply your final IL-EITC by 20% to compute the Child Tax Credit. Confirm eligibility on IL-1040 instructions.

Illinois Schedule IL-E/EITC – Exemption & Earned Income Tax Credit (2026)
Step 1 – Dependent Exemption
1Number of dependents claimed
2Dependent exemption (Line 1 × $2,775)
Step 2 – Federal Earned Income Tax Credit
3Federal EITC amount (from your Federal Form 1040)
Step 3 – Illinois Earned Income Tax Credit
4Preliminary IL-EITC (Federal EITC × 20% )
5Illinois maximum based on qualifying children (0/1/2/3+)
6IL-EITC (smaller of Line 4 or Line 5)
Step 4 – Illinois Child Tax Credit (if eligible)
7Any dependent under age 12?
8Illinois Child Tax Credit (Line 6 × 20% if Line 7 checked)
Step 5 – Total Credits to IL-1040
9Total to carry to IL-1040 credits (IL-EITC + IL Child Tax Credit)

Examples

Example 1 (1 child): Federal EITC=$4,000 ⇒ IL preliminary=$4,000 × 20% = $800. Illinois maximum with 1 child is $843, so IL-EITC=$800. If a dependent is under 12, IL Child Tax Credit=$800 × 20% = $160. Total credits=$960.

Example 2 (3+ children): Federal EITC=$8,000 ⇒ IL preliminary=$1,600. Max for 3+ children is $1,566, so IL-EITC=$1,566. If eligible for Child Tax Credit: $1,566 × 20% = $313.

Filing Tips

Last reviewed: 2025-11-07: If you believe this form requires an update, please contact us.

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Frequently Asked Questions

Mortgage vs take-home planning

Try the Mortgage Calculator and revisit this IL page.

Where do I mail the completed IL-1040-V and payment?

Mail the completed voucher and payment to the address printed on the voucher (Illinois Department of Revenue, Springfield IL 62726-0001) unless told otherwise during filing.

Do charitable gifts affect IL tax?

IL doesn’t mirror federal itemized deductions; charitable gifts matter federally, not typically for IL base.

Why don’t my payroll brackets match?

Employer systems use rounding/timing and supplemental methods; small variances are normal.

Does Illinois tax Social Security or pension income?

No. Illinois exempts most retirement income—including Social Security, pensions, and IRA withdrawals—from state income tax. These subtractions are reported on Schedule M.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.