EITC and Child Tax Credit: How They Work Together and When You Get Each One

The core difference: one rewards work, one rewards having dependents

The Earned Income Tax Credit (EITC) is a refund based on how much you earned from a job or self-employment. The Child Tax Credit (CTC) is a separate refund based on how many children under 17 live with you. You can receive both in the same year — they do not replace each other. The EITC has no income limit for filing, but the CTC phases out at higher incomes. Most working families with children receive both.

The two credits work on different rules about who qualifies, how much you get, and when the money arrives. Understanding which one applies to your situation matters because you need to claim both on your tax return to receive both payments.

Key Takeaways

• The EITC is based on your earned income from work; the CTC is based on the number of may have access to children under 17 in your household.
• You can claim both credits in the same tax year — they are separate and do not reduce each other.
• The EITC reaches its maximum amount at a certain income level, then decreases as you earn more; the CTC also decreases at higher incomes but starts at a different threshold.
• The CTC requires you to have a Social Security number for each child you claim, while the EITC has different rules for people without children.
• Both credits are claimed on your tax return, and you receive the money as a refund or a reduction in taxes owed.

How the EITC works if you have children

The EITC amount depends on how many children you claim and your total earned income. With one child, the credit is smaller than with two children, which is smaller than with three or more. As your income rises, the credit grows until it reaches a peak, then it shrinks as you earn more. The income level where it peaks, and the income level where it disappears entirely, both depend on how many children you have.

For example, a single parent with one child and $20,000 in earned income receives a different EITC amount than a single parent with two children and the same income. The parent with two children receives more. But if both parents earn $60,000, the one with two children may receive less EITC than the one with one child, because both have passed the peak and are in the phase-out range.

You do not have to have children to receive the EITC — there is a smaller credit for workers without may have access to children — but the credit is much larger if you do.

How the Child Tax Credit works and who qualifies

The CTC gives you money for each child under 17 who lives with you for more than half the year and whom you claim as a dependent on your tax return. The child must have a valid Social Security number. You can receive the credit even if the child has no income.

The CTC amount per child is set by law and does not change based on your income — you get the same dollar amount per child regardless of whether you earned $30,000 or $80,000. However, the credit begins to shrink once your income passes a certain threshold. That threshold is higher than the EITC threshold, so you may still receive the full CTC even if your EITC has already started to decrease.

Unlike the EITC, you do not need to have earned income to claim the CTC. If you had no job but received child support, disability payments, or other non-work income, you can still claim the CTC for your children.

Income limits and phase-out ranges for each credit

The EITC has the lowest income threshold of the two. Once you earn past a certain amount, the credit shrinks by a percentage of each additional dollar you earn. The exact income where this happens depends on your filing status (single, married filing jointly, head of household) and how many children you claim.

The CTC has a higher income threshold. You can earn more money and still receive the full credit. Once you pass that threshold, the credit decreases, but more slowly than the EITC does. This means a family can lose most or all of their EITC while still receiving a substantial CTC.

Income limits change each year. The IRS publishes updated tables, and tax software automatically calculates both credits based on your actual income. You do not need to memorize the numbers — you only need to know that both credits shrink at higher incomes, and that the CTC threshold is higher than the EITC threshold.

When you receive the money from each credit

Both credits are claimed on your tax return when you file. If you file in February or March, you typically receive the refund within two to three weeks of the IRS processing your return. If you file later in the tax season, processing can take longer.

Some families can receive part of the CTC in advance payments throughout the year, rather than waiting until tax time. This happened automatically for many families in 2021 and 2022, though the rules have changed. Check the IRS website or ask a tax preparer whether advance payments are available in the current year.

The EITC is not available as advance payments — you receive the full amount when you file your return.

What happens if you claim a child on both credits

You claim the same child on both the EITC and the CTC. The child counts toward your EITC amount (which increases the credit if you have one or more children), and the same child also counts toward your CTC amount. You are not double-dipping or doing anything wrong — this is how the system is designed.

The only requirement is that the child must meet the rules for both credits. The child must live with you, be under 17 for the CTC, have a Social Security number, and be your dependent. If a child meets these rules, you claim them on both credits and receive both amounts.

How to claim both credits on your tax return

If you file your own taxes using tax software, the software will ask you questions about your income, filing status, and children. Based on your answers, it automatically calculates both the EITC and the CTC and includes both on your return. You do not have to do anything special — just answer the questions accurately.

If you use a tax preparer or file by paper, tell them about all children who live with you and whom you claim as dependents. The preparer will claim both credits. If you file by paper, you will fill out Schedule EIC (for the EITC) and include it with your return, and you will also claim the CTC on the main form.

The most common mistake is not claiming one of the credits because the filer did not realize they were available. If you have earned income and children, you should receive both unless your income is too high for one or both.

Frequently Asked Questions

Can I get both the EITC and the Child Tax Credit in the same year?

Yes. Both credits are separate and do not reduce each other. If you have earned income and may have access to children, you can claim both on your tax return and receive both amounts as refunds or reductions in taxes owed.

What if my income is too high for the EITC but not for the Child Tax Credit?

You receive only the CTC. The EITC phases out at a lower income level than the CTC, so it is common for higher-earning families to lose the EITC while still receiving the full CTC. You still claim both on your return — the EITC will simply be zero.

Do I need a Social Security number for my child to claim the Child Tax Credit?

Yes. Each child must have a valid Social Security number. If your child does not have one, you can request one from the Social Security Administration before you file your tax return. Without a number, you cannot claim the CTC for that child.

What if I have more than three children?

The EITC amount is the same whether you have three children or five children — it does not increase beyond three. The CTC, however, gives you the full amount for each child under 17, so more children means more CTC. You claim all may have access to children on both credits.

If I did not work, can I still get the Child Tax Credit?

Yes. The CTC does not require earned income — you can receive it based on any income, including disability payments, child support, or unemployment benefits. The EITC, however, requires earned income from work or self-employment, so you would not receive the EITC if you had no earnings.