Finding Financial Assistance

This page was originally created to provide information about special financial assistance programs that were offered during the COVID 19 pandemic. While those programs are over, there are many on-going programs and resources that help those in financial need, including tax breaks that target households with children and those that have low to moderate earnings.

Government Support Programs
Unemployment Insurance
Housing Counselors
Credit Reports: Free Weekly Reports
Income Taxes
     Filing Taxes Could Get You a Cash Refund
     Earned Income Tax Credit
     Child Tax Credit
     Tax Breaks for Child Care Expenses
     Help with Filing Your Taxes

Government Support Programs

Details of some of these programs may differ by state, but https://www.usa.gov/help-with-bills will help you navigate to the right place for any of these programs in your state. If you live in Illinois, click the “Illinois” links for information or to apply.  

• Gas or electric bills for heating and cooling: The Low Income Home Energy Assistance Program (LIHEAP) helps low income households may provide assistance. Eligibility requirements may vary by state.
  • Illinois
  • United States – all
• Medical bills: You might qualify for Medicaid and CHIP (for children).
  • Illinois
  • Medicaid – links to website for each state
• Prescription drug costs.
• Telephone service: The Lifeline Program from the Federal Communications Commission (FCC) provides discounts on landline or cell phone service for low income individuals. 
• General assistance: Temporary Assistance for Needy Families (TANF) program provides temporary financial assistance for pregnant women and families with one or more dependent children. TANF provides financial assistance to help pay for food, shelter, utilities, and expenses other than medical.
  • Illinois
  • United States – all: Search for contact info for your state
• Food assistance:
  • SNAP (Supplemental Nutrition Assistance Program) was formerly known as Food Stamps. It provides money for low income individuals and families to use to buy food. The money is deposited onto a card, like a debit card, that you use to buy groceries. You must apply locally.
    • Illinois – info
    • Illinois – application
    • Use the national directory to find contact info for your state. 
  • WIC is a food assistance program for women, infants, and children, designed make sure that pregnant women, new mothers, and young children can access the food they need to stay healthy. To apply, you will need to visit a local agency in your state.
    • Illinois – info
    • Use the nationwide pre-screening tool to see whether you may be eligible; allow 15 minutes to complete it.

Unemployment Insurance

Unemployment benefits are managed by each state individually. CareerOneStop.org provides links to each state’s unemployment information.

Check the Illinois Department of Employment Security website for answers about eligibility and how to file for unemployment.

Housing Counselors

A housing counselor approved by HUD can give you advice about foreclosure, mortgages, and other housing questions. There may be a small cost.

Income Taxes

Filing Taxes Could Get You a Cash Refund from Credits

Filing taxes could qualify you for credits that could give you a substantial refund

If you owe tax, tax credits will help pay your income taxes. If the credit is refundable and the credit is more than the tax you owe, you will get a refund for the difference. The Earned Income Tax Credit has always been refundable.

You can claim more than one credit, as long as you are eligible for each one. For example, you might qualify for the Earned Income Tax Credit, the Child Tax Credit, and the Child & Dependent Care Credit. See the sections below for details about the various Credits available.

If you are getting a refund, there is no penalty for filing late.

Earned Income Tax Credit

The Earned Income Tax Credit (Español) is a refundable credit is for working adults with limited incomes who:

• Have earned income.
• Have little or no investment income.
• Have a valid Social Security number.
• Were a US citizen or resident alien for the entire year.
• File taxes as Single, Married Filing Jointly, Head of Household, or Qualifying Widow/Widower.
  • You cannot get the credit if you file as Married Filing Jointly.

Whether you qualify for the Earned Income Credit – and how much you receive – is based on your income. Learn more about who qualifies here (Español))The income limits for 2020 are shown in the following table. You can also check the income limits for other years (Español) to see if you qualified for 2019 or 2018. If so, you could still file to claim it.

Earned Income Tax Credit for 2020
Children or relatives claimed	Income limit for single, head of household or widowed	Income limit for married filing jointly	Income limit for single, head of household or widowed
None	$15,820	$21,710	$538
1	$41,756	$47,646	$3584
2	$47,440	$53,330	$5920
3 or more	$50,594	$56,844	$6660
Income means Adjusted Gross Income (AGI) from line 10-C on the 1040 form.

The amount of investment income that is allowed was increased from $3650 to $10,000 in 2021

Not sure if you qualify?

Use the EITC Assistant to be sure. Go to https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant (Español).

Child Tax Credit

The child must:

• Be a US citizen, national or resident alien.
• Have a Social Security number.
• Be claimed as a dependent on your tax return, and the return must include the child’s name, date of birth, and Social Security number.
• Be related to you, and must live with you for at least six months during the year.

Tax Breaks for Child Care Expenses: Child & Dependent Care Credit and the Dependent Care Flexible Spending Account

Families paying for child care can choose from two ways to reduce their income taxes.

• Claim the Child & Dependent Care Credit when you file your income taxes.
• Have money deducted from your paycheck for a Dependent Care Flexible Spending Account.

You cannot count the same expenses for the Credit and for the Flexible Spending Account. 

Child & Dependent Care Credit

The Child & Dependent Care Credit (Español) lets you claim a credit on your taxes for care of a child under age 13 that allowed you to work. Expenses such as day care, after school care, and summer day camp may qualify. You must provide either a Social Security or an Individual Taxpayer Identification Number (ITIN) for the care provider in order to claim the credit, unless the provider is a tax-exempt organization. The Credit is claimed by filing out Form 2441 and attaching it to your 1040 tax form (Español). Use the interactive assistant  on the IRS website to determine whether or not you are eligible.

If you pay child care expenses, your credit could be substantially larger in 2021. 

• The maximum credit is $4000 for the care of one person, or $8000 for two or more, compared to $1050 and $2100 for 2020.
  • How is it calculated? For 2021, the credit is 50% of qualifying expenses of up to $8000 for care of one person and $16,000 for two or more.  For 2020, it was 35% of up to $3000 of care expenses for one child and up to $6000 for two or more.
• The credit is fully refundable for 2021. In 2020, it was not refundable, meaning that It could reduce the tax you owed, but it would not increase the amount of your refund.
• The credit is reduced for taxpayers earning over $125,000. Taxpayers with incomes up to $400,000 will get gradually smaller credits. In previous years, the credit was reduced when your income exceeded just $15,000.

There are a lot of details associated with this credit. For more information, check out IRS Publication 503, Child and Dependent Care Expenses. This publication is updated each year.

Flexible Spending Accounts

Flexible Spending Accounts let employees reduce their taxes by having money for certain expenses deducted from their paychecks without paying tax on it. The money is deposited into an account used specifically to pay for either child care, medical expenses, or commuter expenses that year. Employers choose whether to offer Flexible Spending Accounts, and some employers only offer one or two types.

The employer must sign up each year during open enrollment. You agree to have a certain amount deducted from each paycheck for the entire year. That part of your income avoids all taxes: federal and state income taxes, Social Security and Medicare taxes. The savings can be significant, especially for higher income earners.

You must use the money to pay eligible expenses during the year. Money left at the end of the year may be lost.

Choose Flexible Spending Account or Child & Dependent Care Credit

If you use a flexible spending account to pay for care expenses, you cannot use the same expenses to claim the Child & Dependent Care Credit. You should compare the tax benefits to see which one is better for you.

Help with Filing Your Taxes: File for Free and Look for Free Tax Preparation Assistance

Do your own taxes for free, using software to guide you.

Many people hire someone to file their taxes. But you can do it yourself! That doesn’t mean you have to read through pages and pages of instructions in order to fill out confusing, complicated forms. You can access free versions of software that will guide you through the process of filing out the forms. And then you will be able to file your taxes for free. 

To find software that will guide you through the process, and file for free.

• Income limit: $72,000 https://apps.irs.gov/app/freeFile/browse-all-offers
• No income limit: https://www.myfreetaxes.com/ Choose “By Myself” to use the software and do your taxes yourself. Click “With Assistance” to see if there are services that still have opening to do your taxes for you.

Get your taxes done for free.

Every year, there are many free tax preparation services available. But the pandemic has made it harder for these groups to serve people. Also, free tax preparation services may be full or already be closed for doing 2020 taxes.

Check these sources to look for free tax preparation services:

• https://irs.treasury.gov/freetaxprep/  
• https://www.myfreetaxes.com/ provided by United Way
• For Chicago: http://www.taxprepchicago.org/  a partnership between the City of Chicago and Ladder Up, a non-profit organization.

File prior year taxes to get refunds you missed.

Did you miss getting credits such as the Earned Income Tax Credit, Child Tax Credit, or Child & Dependent Care Credit in 2018, or 2019? You can file taxes to claim a refund up to 3 years from the original due date. There is no penalty for late filing if you are owed a refund. Ask free tax prep sites whether they prepare prior year returns. Otherwise, you may have to fill out the forms yourself or pay a tax preparer. 

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Student Loans

The official government website for student loans, studentaid.gov is your best source for any and all questions about student loans.

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