EITC vs Child Tax Credit

Key Differences Between the EITC and the Child Tax Credit

The Earned Income Tax Credit and the Child Tax Credit are both federal tax credits for families, but they work in very different ways. Understanding the differences helps you claim the full amount you are owed.

The EITC is designed for workers with low to moderate earnings. The credit amount depends on how much you earn, your filing status, and how many qualifying children you have. It phases in as your income rises, hits a maximum, and then phases out at higher income levels. For tax year 2025, the maximum EITC is $8,046 for a worker with three or more children. Workers without children can claim a smaller credit of up to $649. The EITC is fully refundable, so you receive the full amount even if you owe zero in federal income tax. About 24 million workers claimed roughly $70 billion in EITC for tax year 2024, according to IRS statistics. You can read our full EITC guide for details on income limits and phase-out ranges.

The Child Tax Credit is a flat amount per child. For tax year 2025, it provides up to $2,200 for each qualifying child under age 17. The income limits are much higher than the EITC: single filers get the full credit up to $200,000 in income, and married couples filing jointly get it up to $400,000. About 40 million families claim the CTC each year, covering close to 90% of all families with children. The CTC is only partially refundable. Up to $1,700 per child can be refunded through the Additional Child Tax Credit (ACTC), but you need at least $2,500 in earned income to qualify for that refundable portion. See our Child Tax Credit guide for the full breakdown.

Both credits are administered by the Internal Revenue Service and claimed on your annual federal tax return. You do not need to visit a government office or submit a separate application for either one.

The biggest structural difference is how each credit scales. The EITC grows with your income up to a point, then shrinks. The CTC stays at a flat $2,200 per child for most families and only phases out at high incomes. A single parent earning $30,000 with two children could receive a $5,236 EITC plus $4,400 in CTC on the same return. That is $9,636 in combined tax credits.

Can You Get Both the EITC and the Child Tax Credit?

Yes. Millions of families claim both credits on the same federal tax return every year. There is no rule preventing you from receiving both. In fact, the IRS expects most low-income families with children to claim both.

The credits serve different purposes and have separate eligibility rules. The EITC rewards work at lower income levels. The CTC provides a fixed benefit per child across a much wider income range. A family earning $25,000 with two children would likely qualify for a large EITC (close to the $7,152 maximum for two children) and the full $4,400 CTC ($2,200 per child). Combined, that is over $11,000 in credits.

Both credits are claimed on your Form 1040. You attach Schedule EIC for the EITC and Schedule 8812 for the CTC. Tax preparation software calculates both automatically when you enter your income and children's information.

If you claim either the EITC or the ACTC (the refundable part of the CTC), the IRS cannot issue your refund before mid-February by law. This applies to your entire refund, not just the portion from these credits. Most refunds arrive in late February or early March if you file electronically with direct deposit. Track your refund at IRS Where's My Refund.

Neither credit counts as income for other federal benefit programs. Your EITC and CTC refunds are excluded from income calculations for SNAP, Medicaid, SSI, and TANF for 12 months after you receive them. Many families who claim these credits also qualify for WIC and school meals programs.

Beyond the federal credits, 31 states and the District of Columbia offer their own earned income tax credits that stack on top of the federal EITC. California adds up to $3,644 through the CalEITC. New York provides a state EITC worth 30% of the federal credit. Check your state benefits page for details on state-level credits where you live.

Which Should You Claim?

Most working families with children should claim both. Here is how to think about your situation:

If you have children and earn under $61,555 (single) or $68,675 (married): You likely qualify for both credits. File your federal tax return and claim both. The combined value can exceed $10,000. Use our free screener to check your eligibility for both credits plus 20 other benefit programs.

If you have children and earn between $61,555 and $200,000 (single): You are above the EITC income limit, but you still qualify for the full Child Tax Credit. Claim the CTC on your return. You may also qualify for ACA marketplace health insurance with premium tax credits. Use our screener to check all programs at once.

If you have children and earn over $200,000 (single) or $400,000 (married): The CTC begins to phase out at $50 per $1,000 over the threshold. You will not qualify for the EITC. You may still receive a partial CTC depending on your income and number of children.

If you have no children and earn under $19,104 (single) or $26,214 (married): You can claim the EITC without children, though the maximum is only $649. You must be at least 25 and under 65. You cannot claim the CTC without a qualifying child. Check if you qualify for SNAP, Medicaid, or LIHEAP as well.

If you are unsure: File your taxes using free options. IRS Free File is available for people with AGI of $84,000 or less. The VITA program provides free in-person tax help for people earning $67,000 or less. Both services will calculate your credits automatically. You can also check your eligibility for all programs in about five minutes.

Frequently Asked Questions

Can I claim the EITC without children?

Yes. Workers without qualifying children can claim a smaller EITC. For tax year 2025, the maximum credit is $649 for a single filer with AGI under $19,104 ($26,214 if married filing jointly). You must be at least 25 and under 65 at the end of the tax year. You cannot claim the Child Tax Credit without a qualifying child under 17.

Do I need to pick one credit or the other?

No. The EITC and the Child Tax Credit are separate credits with separate eligibility rules. If you qualify for both, claim both on the same tax return. There is no rule that makes you choose. Tax software and VITA preparers will calculate both credits for you automatically.

What counts as earned income for these credits?

Earned income includes wages, salaries, tips, and self-employment income. It does not include unemployment benefits, Social Security, pensions, interest, dividends, or child support. Both credits require earned income: the EITC requires it for eligibility, and the CTC requires at least $2,500 in earned income for the refundable portion (ACTC).

How much can I get from both credits combined?

The maximum depends on your income and number of children. A worker with three or more qualifying children could receive up to $8,046 from the EITC plus $6,600 or more from the CTC (at $2,200 per child). In practice, a family earning $25,000 with three children might receive roughly $14,000 in combined credits. Use the IRS EITC Assistant to estimate your specific amounts.

Do these credits affect my other benefits?

No. Federal law excludes tax credit refunds from income calculations for programs like SNAP, Medicaid, SSI, and public housing. The refund is also excluded from asset limits for 12 months after you receive it. Claiming these credits will not reduce your other benefits.

My child has an ITIN, not an SSN. Can I claim these credits?

For the Child Tax Credit, each qualifying child must have a valid Social Security number. A child with an ITIN does not qualify for the CTC, though they may qualify for the $500 Credit for Other Dependents. For the EITC, you (the filer) must have an SSN valid for employment. A qualifying child for the EITC also needs an SSN. See the IRS ITIN guidance for more details.

When will I receive my refund if I claim both?

If you claim the EITC or the ACTC (the refundable part of the CTC), the IRS holds your entire refund until after mid-February. If you file electronically with direct deposit, expect your refund in late February or early March. Paper returns take longer. Check your refund status at IRS Where's My Refund.

Can I claim these credits if I am married filing separately?

For the EITC, yes, starting with tax year 2021, if you have a qualifying child and lived apart from your spouse for the last six months of the year. For the CTC, married filing separately filers can claim the credit, but the phase-out threshold drops to $200,000 instead of $400,000. If possible, filing jointly usually produces a larger combined benefit from both credits.