Tax Credits
Credits reduce your tax bill dollar-for-dollar — much more valuable than deductions. Some are refundable (you get money back even if you owe nothing).
💡 Credit vs Deduction
A $1,000 deduction in the 22% bracket saves you $220. A $1,000 credit saves you $1,000. Credits are always better.
REFUNDABLE
Child Tax Credit
$2,200 per qualifying child under 17 (increased from $2,000 by OBBBA). Up to $1,700 refundable (ACTC). Phases out at $200K single / $400K MFJ.
REFUNDABLE
Earned Income Tax Credit
Up to $8,046 with 3+ children. Income limits vary by filing status and children. Must have earned income.
PARTIALLY REFUNDABLE
American Opportunity Credit
$2,500 per student for first 4 years of college. 40% refundable ($1,000). Income limit: $90K single / $180K MFJ.
Lifetime Learning Credit
Up to $2,000 per return for any post-secondary education. Not refundable. Income limit: $90K/$180K.
Child & Dependent Care
20-35% of up to $3,000 (1 child) or $6,000 (2+ children) in care expenses. Not refundable.
Saver's Credit
10-50% of up to $2,000 ($4,000 MFJ) in retirement contributions. Income limit: $39,500 single / $79,000 MFJ.
Clean Vehicle Credit
Up to $7,500 for new EVs or $4,000 for used. AGI limits: $150K single / $300K MFJ. ⚠️ Terminated by OBBBA for vehicles acquired after Sept. 30, 2025.
Residential Energy Credit
30% of costs for solar panels, heat pumps, insulation. Up to $3,200/year. ⚠️ Terminated by OBBBA for property placed in service after Dec. 31, 2025.