What's the Difference Between the Earned Income Credit and the Child Tax Credit?

The Earned Income Credit (EIC) and the Child Tax Credit are both refundable tax credits that can reduce or eliminate what you owe, but they target different situations. The Child Tax Credit is primarily a benefit for having children — you get up to $2,000 per qualifying child under 17, regardless of how much you earn (within income limits). The Earned Income Credit is designed specifically to help lower- and moderate-income workers, and the amount you receive depends on your income, your filing status, and how many children you have. The EIC can be claimed even if you have no children, while the Child Tax Credit requires at least one qualifying child. Both credits phase out as your income rises, but they use different income thresholds, so it's worth checking your eligibility for each separately.