While there are a variety of tax credits offered at the federal and state levels, here are some of the most common (and most significant) you might qualify for.
Child Tax Credit
The Child Tax Credit helps ease the costs of raising kids. In the 2021 tax year, this credit was worth up to $3,600 for kids under six and $3,000 for kids between six and 17. The amount you could claim started to phase out at incomes of $75,000 or more ($150,000 for married couples and $112,500 for heads of household). Our guide to the Child Tax Credit explains more.
Earned Income Tax Credit
The Earned Income Tax Credit is worth up to $6,935 for the 2022 filing year. It’s available to people who are 19 or older (or students who are 24 or older) and aren’t claimed as a dependent on anyone else’s tax return.
You will receive an amount based on income, household size, and other factors. You can’t qualify if you received more than $10,300 from investment income.
Generally, the Earned Income Tax Credit is worth investigating if your adjusted gross income is less than $53,057 as a single filer and less than $59,187 as a married couple (though amounts and guidelines change every year). Many individual states also offer their own version of the Earned Income Tax Credit.
American Opportunity Tax Credit
The American Opportunity Tax Credit helps families who are paying for higher education. It offers up to $2,500 for qualifying higher education expenses, including tuition and course materials.
It covers all four years of college as long as the student is enrolled at least half-time. You could qualify for the full credit if your modified adjusted gross income is $80,000 or less as a single filer or $160,000 or less as a married couple filing jointly.
As mentioned, the American Opportunity Tax Credit may offer a partial refund if your tax bill goes down to $0 and you still qualify for an additional amount.
Rebecca Safier
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