Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits (2026)

Chapter: 8 Impact of the EITC and CTC on Child Poverty in 2021

Previous Chapter: 7 Potential Labor Supply and Employment Effects of Tax Credits
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 153
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 154
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 155
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 156
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 157
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 158
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 159
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 160
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 161
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 162
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 163
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 164
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 165
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 166
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 167
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 168
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 169
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 170
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 171
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 172
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 173
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 174
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 175
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 176
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 177
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 178
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 179
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 180
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 181
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 182
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 183
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 184
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 185
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 186
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 187
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 188
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 189
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 190
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 191
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 192
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 193
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 194
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 195
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 196
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 197
Suggested Citation: "8 Impact of the EITC and CTC on Child Poverty in 2021." National Academies of Sciences, Engineering, and Medicine. 2026. Pathways to Reduce Child Poverty: Impacts of Federal Tax Credits. Washington, DC: The National Academies Press. doi: 10.17226/29163.
Page 198
Next Chapter: 9 Alternative Policy Options
Subscribe to Email from the National Academies
Keep up with all of the activities, publications, and events by subscribing to free updates by email.