HB4920 Summary

• Increases Illinois earned income tax credit (EITC) percentages: 20% of federal credit for 2023-2024, 22% for 2024-2025, and 25% for 2025 and later (up from 18% previously).

• Expands EITC eligibility to individuals ages 18-24 and age 65+ without regard to federal age restrictions that normally apply to those without qualifying children.

• Extends EITC to taxpayers filing with an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number.

• Creates new child dependent tax credit of at least $600 per year beginning in 2024, designed to ensure combined EITC and dependent credits total at least $600.

• Makes credits refundable if they exceed tax liability and excludes refunds from income calculations for means-tested benefit programs.