The federal Earned Income Tax Credit (EITC) and Child Tax Credit are among the largest Internal Revenue Service (IRS) public benefits for low-income households. The resources below can help families understand tax credits. Learn about eligibility requirements and how to access these benefits.
Earned Income Tax Credit
EITC is a benefit for workers with low to moderate income. To qualify, an individual must meet specific requirements and file a tax return. If a family owes taxes, EITC can reduce the amount they owe. In other instances, EITC may provide a refund even if a family does not owe taxes. Individuals must file a tax return and claim the tax credit to receive it.
Child Tax Credit and Credit for Other Dependents
The Child Tax Credit helps families with qualifying children afford the costs of raising children. For tax year 2022, people with children under the age of 17 may be eligible to claim a credit of up to $2,000 per qualifying dependent, and $1,500 of that credit may be refundable.
Families with dependents who don’t qualify for the Child Tax Credit may be able to claim the Credit for Other Dependents. The maximum credit amount is $500 for each dependent who meets certain conditions.
Child and Dependent Care Credit
The Child and Dependent Care Credit is intended to offset the cost of child care. Families may qualify for the credit if they paid expenses for the care of their qualifying child under age 13 to enable them to work or actively look for work.