Tax filing for low-income families — the refunds you shouldn't miss and what to bring (2027 filing season)

Many low-income families assume that "if you don't earn much, you don't need to file." The opposite is true: low income is exactly when filing pays off most, because the government refunds money through tax credits — even if you owe no tax at all. The 2027 filing season (for tax year 2026) opens in late January and the deadline is usually mid-April.

The refunds worth the most

1. Earned Income Tax Credit (EITC) — for people who worked (wages or self-employment) with income under the thresholds. For tax year 2026, a family with three or more children can receive more than $8,000; a single worker without children can still receive a few hundred dollars. Illinois adds an Illinois EITC equal to 20% of the federal credit.

2. Child Tax Credit (CTC) — $2,200 per child under 17 (tax year 2026), most of it refundable in cash if you worked. Illinois also has an Illinois Child Tax Credit for families with children under 12.

3. New deduction for people 65+ — the 2025 tax law added a $6,000 deduction per person age 65 or older (tax years 2025–2028) for incomes under $75,000 (single) / $150,000 (married). Many seniors with a pension or 401(k) withdrawals will owe no tax at all.

4. Premium Tax Credit — if you bought insurance through Get Covered Illinois (Form 1095-A), you must file to reconcile the subsidy; not filing means losing the subsidy next year.

5. Over-withheld tax — workers who had tax withheld from paychecks but earned little for the year usually get most of it back.

What to bring

• Social Security cards or ITIN letters for everyone on the return (spouse, children)
• Photo ID
• Forms W-2 (employee), 1099-NEC / 1099-K (nail salon, self-employment, rideshare), SSA-1099 (Social Security), 1099-R (pension), 1099-INT (bank)
• Form 1095-A if you had Marketplace insurance
• Income and expense records if self-employed (shop, salon, sales)
• Child care receipts (provider name, address, EIN)
• Bank account number for direct deposit of your refund (much faster than a check)
• Last year's return (if you have it)

Where to file for free

• VITA / AARP Tax-Aide: free tax sites across Chicago for households earning roughly under $67,000, people 60+, people with disabilities and people who need an interpreter. Open from late January to mid-April.
• IRS Free File online for people comfortable filing themselves.
• An Tax & Benefits (Chicago office — by phone across Illinois, Missouri and Texas): completely free for income under $30,000 a year (W-2, pension, Social Security). Other returns are priced clearly: basic 1040 (W-2) $99, with EITC / children $150, nail salon – restaurant – 1099 income (Schedule C) from $149, state return included; quote before we start, PTIN preparer. Call early to book, February–March fills quickly. While you file, we check Medicare, Social Security and SNAP for your parents at no charge.

Beware of "ghost preparers"

Every year people are talked into inflated refunds and then hear from the IRS years later demanding the money back plus penalties. The rules: a paid preparer must sign the return and list their PTIN; never sign a blank return; your refund must go to your own bank account, never the preparer's.