Can you claim both EITC and Child Tax Credit?
The tax credits are available to US taxpayers when they file their tax forms this year. The deadline is fast approaching.
With the filing of a tax return there is an expectation that there will be a refund. Indeed, three in four Americans will get refunds from their taxes this year. The size of this is determined by myriad factors, but one of the surest ways to a get a reduction or refund is to qualify for tax credits.
Two of the largest available for families are the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). Both credits are designed to support people and families that are in work.
The EITC is a federal tax refund that is fully refundable, meaning if your tax burden is reduced to $0 then the IRS will pay you the difference. It can be worth nearly $7,000 if all the requirements are met. While having a family increases the amount that can be claimed it isn’t specifically targeted towards them.
The CTC is worth up to 15% of your income, up to $2,000, but is not fully-refundable. It phases out at a much lower level compared to the EITC and is meant for helping nearly all working families with raising children.
Accessing one does not restrict taxpayers from claiming the other.
How to claim the EITC and the Child Tax Credit
There are a few qualifications necessary to claim the EITC:
To claim the CTC: