Millions of families receive both the Child Tax Credit and food stamps (SNAP), and the most common question is whether one affects the other. The short answer: the Child Tax Credit generally does not count as income for SNAP, Medicaid, WIC, or most other federal benefits. But the details matter, and a few situations can create complications. This guide explains exactly how the CTC interacts with your benefits so you can plan with confidence.
What Is the Child Tax Credit?
The Child Tax Credit (CTC) is a federal tax credit worth up to $2,200 per qualifying child for the 2025 tax year. It reduces the amount of federal income tax you owe dollar for dollar. If the credit exceeds your tax liability, you may receive part of it back as a refund through the Additional Child Tax Credit (ACTC), up to $1,700 per child.
To qualify for the CTC in 2025, your child must:
- Be under age 17 at the end of the tax year
- Live with you for more than half the year
- Be claimed as your dependent
- Be a U.S. citizen, national, or resident alien
- Have a valid Social Security number
The credit begins to phase out at $200,000 in modified adjusted gross income for single filers and $400,000 for married couples filing jointly. Below those thresholds, you can claim the full amount per qualifying child.
| Filing Status | Full CTC Up To | Phase-Out Starts | Credit Reduces By |
|---|
| Single / Head of Household | $200,000 | $200,000 | $50 per $1,000 over limit |
| Married Filing Jointly | $400,000 | $400,000 | $50 per $1,000 over limit |
Does the Child Tax Credit Count as Income for SNAP?
No. Under federal law, the Child Tax Credit does not count as income for SNAP (food stamps) purposes. It is also excluded from resources for 12 months after you receive it.
This exclusion covers:
- Tax refunds that include the CTC
- The Additional Child Tax Credit (the refundable portion)
- Any lump sum payment received when filing your taxes
The U.S. Department of Agriculture (USDA), which oversees SNAP, has confirmed this exclusion. Receiving your CTC as a tax refund will not reduce your SNAP benefits or disqualify you from the program.
One important caveat: if your state offered an advance child tax credit program (some states run their own versions), the rules may differ at the state level. The federal CTC, received as part of your annual tax filing, is excluded. Always check with your state SNAP agency if you receive advance payments through a state-level program.
How SNAP Income Works
To understand why the CTC exclusion matters, it helps to know how SNAP calculates eligibility.
SNAP uses two income tests:
Gross income test: Your total household income before deductions must be at or below 130% of the federal poverty level (FPL).
Net income test: After allowable deductions, your income must be at or below 100% of the FPL.
For fiscal year 2025, the SNAP income limits by household size are:
| Household Size | Gross Income Limit (130% FPL) | Net Income Limit (100% FPL) |
|---|
| 1 | $1,580/month | $1,215/month |
| 2 | $2,137/month | $1,644/month |
| 3 | $2,694/month | $2,072/month |
| 4 | $3,250/month | $2,500/month |
| 5 | $3,807/month | $2,929/month |
| 6 | $4,364/month | $3,357/month |
| Each additional | +$557/month | +$429/month |
Because the CTC is excluded from both income and resources, it does not push households over these limits.
Does the Child Tax Credit Affect Medicaid or CHIP?
No. The Child Tax Credit does not count as income for Medicaid or the Children's Health Insurance Program (CHIP). Federal law protects tax credits from being counted as income when determining eligibility for these health coverage programs.
This means you can claim the full CTC without worrying that it will cause you to lose health coverage for yourself or your children.
Does the Child Tax Credit Affect WIC?
No. The CTC is not counted as income when determining WIC eligibility. WIC income limits are set at 185% of the federal poverty level, and tax credits received from the IRS are excluded from that calculation.
This protection applies whether you receive the standard CTC or the refundable Additional Child Tax Credit.
Does the Child Tax Credit Affect TANF?
Generally no, but this depends on your state. TANF (Temporary Assistance for Needy Families) is administered at the state level, and states have some flexibility in how they define income. Most states follow federal guidance and exclude tax credits from income counts. Contact your state TANF office or check your state's TANF policy manual to confirm how your state treats CTC payments.
Does the Child Tax Credit Affect Other Benefits?
Here is a summary of how the CTC interacts with common federal benefit programs:
| Program | Does CTC Count as Income? | Notes |
|---|
| SNAP (Food Stamps) | No | Excluded from income and resources for 12 months |
| Medicaid | No | Excluded under federal law |
| CHIP | No | Excluded under federal law |
| WIC | No | Not counted for income eligibility |
| SSI | No (for 9 months) | Tax refunds excluded for 9 months as a resource |
| TANF | Usually no | Varies by state, confirm with your state agency |
| Housing assistance (HUD) | No | Federal tax refunds not counted as income |
| LIHEAP | No | Tax credits not counted |
What Families with Low Income Should Know About the CTC
Lower-income families sometimes receive less benefit from the standard CTC because they owe little or no federal income tax. That is where the Additional Child Tax Credit (ACTC) comes in.
The ACTC is the refundable portion of the credit. If your CTC exceeds what you owe in taxes, you may receive up to $1,700 per child back as a cash refund (2025 tax year). To qualify for the ACTC, you need at least $2,500 in earned income. The refund is calculated as 15% of your earned income above $2,500, up to the $1,700 maximum.
Example: A parent with one child earns $20,000. Their earned income above $2,500 is $17,500. Fifteen percent of $17,500 is $2,625, but the maximum ACTC is $1,700, so they would receive $1,700 back as a refund.
This refund payment will not affect SNAP, Medicaid, WIC, or other federal benefits.
What to Do If You Receive SNAP and the CTC
If you receive both SNAP benefits and expect a tax refund that includes the CTC, here is what to know:
- You do not need to report the CTC refund as income to your SNAP caseworker. It is excluded.
- The money deposited to your bank account does not count as a SNAP resource for 12 months.
- If your SNAP caseworker asks about your tax refund, you can explain that it includes the CTC, which is federally excluded.
- If your caseworker is uncertain, point them to USDA Food and Nutrition Service guidance on the CTC and SNAP.
If you believe your benefits were incorrectly reduced because of a CTC payment, you have the right to request a fair hearing through your state SNAP agency.
How to Claim the Child Tax Credit
You claim the CTC when you file your federal tax return. Here are the steps:
- File a federal tax return using Form 1040, even if your income is low or zero. You must file to claim the credit.
- Complete Schedule 8812 (Credits for Qualifying Children and Other Dependents) to calculate your CTC and ACTC amounts.
- Use free tax filing options if your income is under approximately $67,000. IRS Free File, VITA (Volunteer Income Tax Assistance) sites, and Tax-Aide from AARP all provide free help.
- Include all qualifying children on your return. Each eligible child can add up to $2,200 to your credit.
- Receive your refund. If the ACTC generates a refund, it will arrive by direct deposit or check after the IRS processes your return.
The IRS generally issues refunds within 21 days for electronically filed returns.
Combining CTC with Other Tax Credits
Families with children may also qualify for the Earned Income Tax Credit (EITC), which is separate from the CTC but often claimed together. The EITC is also excluded from SNAP income calculations.
For a family with two children earning $30,000, the combination of CTC and EITC refunds could total several thousand dollars. None of that amount counts against SNAP, Medicaid, or WIC eligibility.
To check what benefits you may qualify for beyond the CTC, use the free screening tool at BenefitsUSA.org/screener. It checks eligibility for SNAP, Medicaid, WIC, LIHEAP, and more based on your household size and income.
Frequently Asked Questions
Does the Child Tax Credit count as income for food stamps?
No. The Child Tax Credit does not count as income or as a resource for SNAP (food stamps) purposes. Federal law excludes tax credits from SNAP income calculations, so receiving the CTC will not reduce your SNAP benefits or cause you to lose eligibility.
Will my SNAP benefits go down if I get a child tax credit refund?
No, they should not. A tax refund that includes the CTC is excluded from SNAP income and resources for 12 months after receipt. If your benefits are reduced after you receive a refund, contact your state SNAP agency and request a fair hearing.
Can I get both the Child Tax Credit and food stamps at the same time?
Yes. There is no rule that prevents a family from receiving both. In fact, many low-income families with children qualify for both programs. They are designed to work together to support families, not to cancel each other out.
Does the Child Tax Credit affect Medicaid eligibility?
No. The CTC is excluded from income calculations for Medicaid and CHIP. You can claim the credit without losing health coverage.
What is the child tax credit amount for 2025?
For the 2025 tax year, the CTC is worth up to $2,200 per qualifying child. The refundable portion (Additional Child Tax Credit) is capped at $1,700 per child for those who owe little or no federal income tax.
Do I have to report the child tax credit to my SNAP caseworker?
No. You are not required to report the CTC as income to your SNAP caseworker. It is a federally excluded income source. However, if your caseworker asks about your tax return or bank deposits, you can explain that the funds are from the excluded Child Tax Credit.
How do I qualify for the child tax credit?
To qualify, your child must be under 17 at year-end, live with you more than half the year, be claimed as your dependent, and have a valid Social Security number. Your income must be under $200,000 (single) or $400,000 (married filing jointly) to receive the full credit.
Does the child tax credit affect WIC?
No. WIC does not count the Child Tax Credit as income. Your eligibility for WIC is based on your household income from wages, self-employment, and similar sources, not tax credits or refunds.
What if I receive a state child tax credit?
Several states offer their own child tax credits in addition to the federal credit. How those state credits interact with SNAP and other benefits depends on your state's rules. The federal SNAP exclusion specifically covers federal tax credits. Contact your state SNAP agency for guidance on how your state credit is treated.
Where can I check if I qualify for SNAP and other benefits?
You can use the free eligibility screener at BenefitsUSA.org/screener to check your eligibility for SNAP, Medicaid, WIC, and other programs in minutes. No account required.
