IL HB3950

Creates an income tax credit of up to $700 per qualified dependent for taxable years beginning January 1, 2024.

Credit phases out by $24 for each $1,000 of net income exceeding $75,000 (joint return) or $50,000 (other returns).

Defines "qualified dependent" as a person who is a dependent under federal tax code, lives with the taxpayer for over 50% of the year, and is either age 17 or younger or physically/mentally incapable of self-care.

Excess credits are refunded to the taxpayer and are excluded from income/resources calculations for means-tested benefit programs unless required by federal law.

Allows individual taxpayers, including those using federal individual taxpayer identification numbers, to claim the credit.