For most single parents, both credits matter, but the bigger check often comes from the EITC when your earned income is in its sweet spot and your child lived with you over half the year. The CTC can still be huge, especially if you owe tax. Here’s how to see which one pays more for you.
First, what each credit actually does (in plain English)
Child Tax Credit (CTC)
- Worth up to $2,200 per qualifying child in 2025; part of it (the Additional Child Tax Credit, ACTC) can be refundable up to $1,700 depending on your earned income.
- Phaseout begins at $200,000 of income for Single/Head of Household (and $400,000 for MFJ).
- You, your spouse (if MFJ), and the child must have valid SSNs; child must be under 17 and meet dependent/residency rules.
- Claimed on Schedule 8812.
Source: IRS Child Tax Credit (page last reviewed Oct 30, 2025); Schedule 8812 instructions. IRS+1
Earned Income Tax Credit (EITC)
- A refundable work credit that usually pays more as earnings rise from zero, then phases out.
- 2025 max EITC: $4,328 (1 child), $7,152 (2), $8,046 (3+). Investment-income limit: $11,950.
- With children, you must meet residency (child lived with you in the U.S. for > half the year), relationship, age, and other rules.
Source: IRS EITC tables; EITC qualifying child residency rules. IRS+1
Bottom line: CTC reduces your tax and can be partly refundable; EITC is fully refundable when you qualify and often yields the bigger refund for low-to-moderate earnings.
Do you qualify? (single-parent lens)
CTC “fast pass”
- Your child is under 17 at year-end, lived with you > half the year, is your dependent, and has a valid SSN.
- Your income is below the phaseout starting at $200,000 (Single/HOH).
- If your tax liability is smaller than the credit, you may get up to $1,700 back via ACTC (based on earned income).
Source: IRS Child Tax Credit; Schedule 8812. IRS+1
EITC “fast pass”
- You worked and have earned income in the EITC range (varies by kids).
- Each qualifying child lived with you in the U.S. > half the year.
- Your investment income is ≤ $11,950 (2025).
- Filing status is eligible (not MFS; special rules apply to certain separated spouses).
Source: IRS EITC tables; EITC residency rules. IRS+1
Bottom line: If your child fails residency, EITC with-child likely fails too—but you may still explore no-child EITC if you meet its age/dependency rules.
CTC vs. EITC: side-by-side (what single parents care about)
| Feature | CTC / ACTC | EITC |
|---|---|---|
| Max (2025) | Up to $2,200 per qualifying child; ACTC refundable up to $1,700 per child | Max $4,328 (1 child), $7,152 (2), $8,046 (3+) |
| Refundable? | Partly (ACTC); rest offsets tax only | Yes, fully refundable if you qualify |
| Key tests | Child <17, dependency, SSNs, residency; phaseout starts $200k (Single/HOH) | Earned income in range; child residency in U.S. > half the year; investment-income ≤ $11,950 |
| Who tends to benefit most | Those who owe some tax (CTC can wipe it out and then some via ACTC) | Workers with low-to-moderate earnings and kids living with them most of the year |
| Common blockers | Child lacks SSN; income too high for full credit | Child residency shortfall; MFS; investment-income over limit |
| Refund timing | EITC/ACTC refunds held until mid-Feb (first wave) | Held until mid-Feb when claimed with ACTC/CTC |
| Where to claim | Schedule 8812 | EITC section on Form 1040; amounts from IRS tables |
Sources: IRS CTC page; IRS EITC tables; Schedule 8812. IRS+2IRS+2
Bottom line: If you qualify for both, you don’t choose—you claim both. The bigger dollars for many single-parent households often come from EITC, especially with 2–3 kids and earnings inside the peak range.
Real-world scenarios (illustrative)
Important: These examples use 2025 IRS amounts where published. Your AGI, earned income, withholdings, and state taxes change outcomes. Always verify with IRS tools or a tax pro before filing.
Scenario 1 — One child, year-round work
- Status: Head of Household
- Kid: Age 6, lived with you all year; valid SSN
- Income: Moderate, within EITC’s 1-child peak phase-in/phase-out window
- Likely outcome:
- CTC: up to $2,200 (with up to $1,700 refundable via ACTC, depending on your earned income). IRS+1
- EITC: potentially up to $4,328 (2025 max for 1 child) if your earned income/AGI hit the sweet spot and investment income is ≤ $11,950. IRS
- Which pays more? EITC typically exceeds CTC in the 1-child case when income is near EITC’s peak range.
Mini-tip: If income is too low to owe tax, ACTC (refundable part) may still put cash in your pocket—but EITC is often the larger check.
Scenario 2 — Two children, steady W-2
- Status: Head of Household
- Kids: Ages 4 and 9, lived with you all year; valid SSNs
- Income: In the moderate range
- Likely outcome:
- CTC: up to $4,400 combined (with up to $3,400 potentially refundable via ACTC in total, income permitting). IRS
- EITC: can reach $7,152 (2025 max for 2 kids) with the right earnings mix; investment income must be ≤ $11,950. IRS
- Which pays more? EITC often wins by a wide margin with 2 kids when income is within the EITC peak window.
Mini-tip: If another person could claim one child, apply IRS tie-breaker rules—longer U.S. residency with the child wins; if exactly equal time, higher AGI wins. IRS
Scenario 3 — Part-year work (job loss or new job mid-year)
- Status: Head of Household
- Kid(s): Lived with you all year; SSNs valid
- Income: Earned income is lower than usual because you worked only part of the year
- Likely outcome:
- EITC: May still be substantial because the credit rises from zero as earnings increase into the qualifying range. Even part-year work can land you inside the EITC’s “sweet spot.” Max depends on kids (see table). IRS
- CTC/ACTC: You could still get some refundable ACTC (up to $1,700 per child) if your earned income meets Schedule 8812 thresholds—even if your final tax bill is small. IRS
- Which pays more? Often EITC—but if your earned income is very low, ACTC may be the only refundable piece you see from CTC while EITC remains modest.
Bottom line for scenarios: With 1 child, results are closer; with 2+, EITC commonly outpaces CTC—as long as residency and income tests are met.
Common disqualifiers (and quick fixes)
- Child didn’t live with you in the U.S. for > half the year → EITC with-child likely fails.
- Fix: Keep a custody calendar; collect school/daycare/medical records with your address to establish residency. IRS
- Investment income over the limit → EITC denied if > $11,950 (2025).
- Fix: Check 1099-DIV/INT/B and year-end capital-gain distributions before you file. IRS
- CTC SSN rules not met or income above phaseout → CTC reduced or lost.
- Fix: Confirm valid SSNs and watch the $200,000 (Single/HOH) phaseout line. IRS
- Married Filing Separately or filing status issues → EITC not allowed (with narrow exceptions).
- Fix: If separated, ensure you truly meet “considered unmarried” facts to file HOH. (See IRS HOH rules; coordinate with a tax pro.)
- Both parents claimed the same child → IRS notices/delays.
- Fix: Apply tie-breaker rules; coordinate claims before filing. IRS
Bottom line: Most denials trace back to residency, investment income, status, or duplicate claims.
Mini-checklist: are you likely to qualify this year?
- CTC:
- ☐ Child is under 17 at year-end, your dependent, with valid SSN
- ☐ Your income ≤ $200k (Single/HOH) for the full amount; partial credit above this threshold
- ☐ You filed Schedule 8812 properly for any refundable ACTC
Source: IRS CTC; Schedule 8812. IRS+1
- EITC:
- ☐ Each child lived with you in the U.S. > half the year
- ☐ Your earned income/AGI is within the EITC range for your family size
- ☐ Investment income ≤ $11,950 (2025)
- ☐ Eligible filing status (not MFS)
Source: IRS EITC tables; residency rules. IRS+1
ocuments to keep (audit-proofing)
- Residency proof: school/daycare/medical records showing your address & dates. IRS
- Custody calendar: overnights by month (save texts/emails where helpful).
- SSNs for you/child; exact names as on Social Security cards.
- Income & investment forms: W-2, 1099-NEC/K/INT/DIV/B; rental ledgers.
- Schedule 8812 worksheets (if claiming ACTC). IRS
Bottom line: Paper beats memory—keep proof of residency and income.
Timing & next steps
- If you claim EITC or ACTC, the IRS can’t issue any of your refund before mid-February (statutory hold). Track with Where’s My Refund after that window. IRS
- Use the EITC Qualification Assistant to pre-check eligibility and potential amounts. (Linked from the IRS EITC tables page.) IRS
- Right before publishing/filing: re-confirm the 2025 figures on IRS pages in case of late updates.
Disclaimer
This article is general information, not tax advice. Rules and dollar amounts can change. Your facts matter. Please confirm with the IRS or a qualified tax professional before filing.
Sources
- IRS—Child Tax Credit (page last reviewed Oct 30, 2025). Last checked: Nov 6, 2025. IRS
- IRS—Earned Income & EITC tables (page last reviewed Oct 16, 2025). Last checked: Nov 6, 2025. IRS
- IRS—EITC Qualifying Child Residency rules. Last checked: Nov 6, 2025. IRS
- Schedule 8812 (Instructions/PDF) — Credits for Qualifying Children and Other Dependents. Last checked: Nov 6, 2025. IRS+1
FAQ section
1) Which pays more for single parents—CTC or EITC?
It depends on income and kids. For low-to-moderate earnings, EITC often pays more—especially with 2–3 kids. If you owe tax, the CTC can also be big, and part of it (ACTC) may be refundable. IRS+1
2) Is the Child Tax Credit refundable in 2025?
Partly. The Additional Child Tax Credit (ACTC) can refund up to $1,700 per child depending on your earned income; the rest of the $2,200 CTC reduces tax you owe. IRS
3) What’s the EITC investment-income limit for 2025?
$11,950. If your investment income exceeds that, you can’t claim EITC even if you meet the other rules. IRS
4) My child lived with me exactly half the year—do I still get EITC?
EITC with-child requires more than half-year U.S. residency. If time is truly equal between two parents, tie-breaker rules may award the child to the parent with higher AGI. IRS
5) Can I claim both CTC and EITC?
Yes—if you meet each credit’s rules. You don’t have to choose; you can get both. Note that refunds involving EITC/ACTC are held until mid-February. IRS
6) If my income is too high for EITC, can CTC still help?
Often yes. The CTC phases out at $200,000 (Single/HOH) and may still reduce your tax even when EITC is no longer available. IRS