Credits
Tax credits that put money back in your pocket
6 min read
Credits beat deductions dollar for dollar: a deduction lowers taxable income, a credit lowers the tax itself. Refundable credits can even pay you when you owe nothing.
Refundable vs. non-refundable
A non-refundable credit can reduce your tax to zero but no further. A refundable credit keeps going. If it is larger than your tax, the difference comes back to you as a refund. That is why credits like the Earned Income Tax Credit matter so much for working families.
Family and dependent credits
These are the credits we check first on every household return, because they are the largest and the easiest to get wrong on do-it-yourself software.
- Child Tax Credit for qualifying children, part of it refundable
- Credit for Other Dependents for older children and dependent relatives
- Earned Income Tax Credit, based on earned income, filing status, and children
- Child and Dependent Care Credit when you pay for care so you can work
Education and learning
If you or a dependent paid tuition, bring your Form 1098-T and the amounts you actually paid, including books and required fees.
- American Opportunity Credit for the first four years of college, partly refundable
- Lifetime Learning Credit for continuing education and graduate courses
Health, home, and energy
Marketplace insurance changes your return: bring Form 1095-A so the premium tax credit reconciles correctly. Home energy improvements and qualifying clean-vehicle purchases can also carry credits, so keep the invoices and the manufacturer certification.
Why credits get missed
Credits depend on details: who lived with you and for how long, how much you earned, who paid the tuition, and whether care was for a qualifying person. Answer our intake questions fully and we will claim everything you are entitled to.
This guide is general tax information, not advice about your specific situation. Amounts and thresholds change each year — we confirm the current figures on your return.