EITC vs. Child Tax Credit — Key Differences

The EITC is a large refundable tax credit for low-to-moderate income workers, especially those with children. The Child Tax Credit provides per-child credits that can also result in a cash refund through the Additional Child Tax Credit (ACTC).

Tax Credits

Earned Income Tax Credit (EITC)

Refundable tax credit for low- and moderate-income workers.

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Tax Credits

Child Tax Credit

Up to $2,000 per child under 17 in tax credits.

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Attribute
Earned Income Tax Credit (EITC)
Child Tax Credit
What it is
Refundable credit based on earned income
Per-child credit (partially refundable as ACTC)
Maximum value (2024)
$7,830 (3+ children)
$2,000 per qualifying child
Refundable portion
Fully refundable
Up to $1,700 per child refundable (ACTC)
Income requirement
Must have earned income; phases out at higher income
Must have at least $2,500 earned income; phases out above ~$200,000
Child requirement
Not required, but greatly increases credit amount
Required — child must be under 17 at year end
Child age limit
Under 19 (or 24 if student) for qualifying child
Under 17 at year end
Social Security number
SSN required for qualifying child
SSN required for qualifying child
Who claims it
Low-to-moderate income workers
Moderate-to-higher income families with children

Can you receive both? Yes.

You can claim both the EITC and the Child Tax Credit (including the refundable Additional Child Tax Credit) in the same tax year for the same child. These credits stack — claiming both can significantly increase your refund.

Which should you apply for?

Claim both if you qualify. The EITC is most valuable for lower-income workers (especially with 2-3+ children), while the CTC/ACTC adds per-child value. Use IRS Free File, a VITA site, or reputable tax software to ensure you claim all credits you are entitled to.

Frequently Asked Questions

What is the difference between the Child Tax Credit and the Additional Child Tax Credit?

The Child Tax Credit (CTC) is worth up to $2,000 per qualifying child. If your tax liability is less than the credit, the "Additional Child Tax Credit" (ACTC) allows you to receive up to $1,700 per child as a refund. The ACTC is the refundable portion — you can receive it even if you owe no taxes.

Do I need to have earned income to claim these credits?

Yes for both. The EITC requires earned income (wages, salary, self-employment) and phases in based on earnings. The CTC requires at least $2,500 in earned income to receive the refundable portion (ACTC). Pure investment or retirement income does not qualify.

What happens if the IRS questions my EITC claim?

The IRS may ask you to document your qualifying child's relationship and residency (for example, school records, medical records, or a signed statement from a school or childcare provider). Respond within the given deadline with all requested documentation. If your EITC was denied due to fraud or reckless disregard, you may be barred from claiming it for 2-10 years.

Apply for Earned Income Tax Credit (EITC) →Apply for Child Tax Credit →

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