Exclusion of Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) Payments

Exclusion of Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) Payments. A. The EITC is a special tax credit that reduces the federal tax liability and results in a payment to the low-income taxpayer, either as advance from the employer or a refund from IRS. Exclude the EITC received either as an advance or as a refund. B. The CTC is a special refundable federal tax credit that is available to parents, step-parents, grandparents and foster parents and provides a refund to individuals even if they do not owe any tax. There is no advance payment with the CTC. Exclude CTC refund payments from income.