Volunteer Emergency Worker Tax Credit

Volunteer fire services emergency workers may be eligible to claim Illinois' new Volunteer Emergency Worker Tax Credit when filing their 2023 Illinois Individual Income taxes. This tax credit can reduce the amount of Illinois individual income tax owed by up to $500.

What is the volunteer emergency worker (VEW) credit?

The volunteer emergency worker credit (Public Act 103-0009) is a $500 non-refundable credit that can be used to reduce your Illinois individual income tax liability for taxable years beginning on or after January 1, 2023, and beginning prior to January 1, 2028. The credit is awarded to volunteer fire service emergency workers that apply for, qualify for, and are awarded the credit.  The aggregate amount of all tax credits awarded in any calendar year may not exceed $5,000,000. Credits shall be awarded on a first-come, first-served basis.

Non-refundable tax credits are applied to your Illinois income tax before withholding and refundable credits. These credits can help reduce your individual income tax liability but cannot result in a refund of the credit amount. For example, if your Illinois Individual Income Tax is $200, and you have a VEW credit of $500. You would only be able to use $200 of the VEW credit to reduce your tax to $0. You would not receive the remaining $300 of VEW credit.

Who is a volunteer emergency worker?

A volunteer emergency worker is defined as a person who serves as a member, other than on a full-time career basis, of a fire department, fire protection district, or fire protection association that has a State Fire Marshal Identification Number (SFMID) issued by the Office of the Illinois State Fire Marshal (OSFM) and who does not serve as a member on a full-time career basis for another fire department, fire protection district, fire protection association, or government entity.

Do I meet the requirements for the VEW credit?

To meet the requirements for the VEW income tax credit, you must...

• have served as a volunteer emergency worker for at least 9 months during the taxable year.
• have not received compensation for your services as a volunteer emergency worker of more than $5,000 for the taxable year.
• be included on the list provided by your fire chief, to the OSFM, attesting that you met the previous two qualifications.
• submit a complete online application with IDOR.
• be one of the first 10,000 qualified applicants.

What do I need to do before I apply for the VEW credit?

News! The verification period for your fire chief to attest to your status as a qualified volunteer emergency worker to OSFM has been extended to April 11, 2024.

Before you submit your application for the Volunteer Emergency worker Credit, you must...

1. first establish an OSFM Personnel, Standards and Education (DPSE) WebAccess Portal Account.
2. Once an OSFM account is established, contact your local fire department, district, or office chief and request that your name be added to the list of qualified volunteer emergency workers sent to OSFM.
3. Once 1 & 2 are complete, you may complete the Volunteer Emergency Worker Credit Application through MyTax Illinois.

How do I apply for the VEW credit?

To apply for the Volunteer Emergency Worker Credit follow the instructions, here.

*Please Note: This information was originally publish on the State of Illinois website.