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.
| Step 1 – Dependent Exemption | ||
| 1 | Number of dependents claimed | |
| 2 | Dependent exemption (Line 1 × $2,775) | |
| Step 2 – Federal Earned Income Tax Credit | ||
| 3 | Federal EITC amount (from your Federal Form 1040) | |
| Step 3 – Illinois Earned Income Tax Credit | ||
| 4 | Preliminary IL-EITC (Federal EITC × 20% ) | |
| 5 | Illinois maximum based on qualifying children (0/1/2/3+) | |
| 6 | IL-EITC (smaller of Line 4 or Line 5) | |
| Step 4 – Illinois Child Tax Credit (if eligible) | ||
| 7 | Any dependent under age 12? | |
| 8 | Illinois Child Tax Credit (Line 6 × 20% if Line 7 checked) | |
| Step 5 – Total Credits to IL-1040 | ||
| 9 | Total 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
- Retain Federal return pages showing your Federal EITC and dependent details.
- Ensure your dependent count and under-12 status match your IL-1040 entries.
- Carry totals correctly to IL-1040 Lines for dependents and credits to avoid delays.
Last reviewed: 2025-11-07: If you believe this form requires an update, please contact us.
Related Forms
- Form IL-1040 – Individual Income Tax Return
- Schedule ICR – Illinois Credits
- Schedule M – Additions & Subtractions
Quick Access Tools
Frequently Asked Questions
Do I need to file IL-1040-X if the IRS changes my income?
Yes. If the IRS adjusts your federal return and it affects Illinois tax, you must file IL-1040-X within 120 days of receiving the federal notice.
Are donations made through Schedule G-L tax-deductible?
Yes. Your Schedule G-L donations are eligible for a federal charitable deduction if you itemize on your federal Form 1040 Schedule A. Keep a copy of the filed schedule and any Lottery confirmation of your gift. The contribution will increase your Illinois payment or reduce your refund, but may lower your federal taxable income in the following year.
Changing jobs mid-year in IL
Update income/withholding and frequency; brackets are flat but credits/exemptions still matter.
Who must file Schedule FD?
You must file Schedule FD if you are a former Illinois resident who receives income (such as installment sale gains or deferred bonuses) sourced from Illinois that became taxable for federal purposes during 2026.
What documentation must accompany Schedule 1299-DA?
Attach copies of the other states’ filed tax returns, W-2s, or K-1s showing withholding and payments. Failure to attach proof can lead to denial of the credit. For convenience, you can track and upload copies directly through the MyTax Illinois portal.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.