Wait. Did You Forget Something

Before you leave, make sure you are not missing out on your maximum refund, fast filing options, or up to $50 for every person you refer.
We make taxes simple and stress free.
Let us help you finish what you started. It only takes a few minutes.

Need Live Help?

Our tax experts are online to answer your questions now!

  • Confused about your refund?

  • Want to know what documents you need?

  • Need help picking the right package?

Click below to chat or call.
We will guide you in real-time!

Live Chat Now.

Maximizing Your Refund: Credits You Might Be Missing in 2025

Many taxpayers assume their refund depends solely on how much federal income tax they had withheld during the year. But that’s only part of the story. Tax credits, especially refundable ones, can dramatically increase the size of your refund or even result in one when you thought you owed.

In 2025, several credits remain available for individuals, parents, students, and workers at various income levels. Yet each year, millions of filers leave money on the table simply because they didn’t know what they qualified for.

This post breaks down the most important tax credits in 2025 and how to make sure you don’t miss them.

What Are Tax Credits?

Tax credits reduce the amount of tax you owe, dollar for dollar. Unlike deductions (which reduce taxable income), credits directly subtract from your tax bill.

There are two types of tax credits:

  • Nonrefundable credits: Reduce your tax to $0 but don’t result in a refund beyond that.

  • Refundable credits: Can create or increase a refund even if you owe no tax.

Refundable credits are key to getting larger refunds and they are especially important for low-to-moderate income filers.

Max Credit: $2,000 per qualifying child under age 17
Refundable Portion: Up to $1,600 per child
Phase-out starts at:

  • $200,000 (Single/HOH)

  • $400,000 (Married Filing Jointly)

If your child meets the requirements (age, SSN, relationship, residency), you may qualify for both a reduction in taxes owed and a refundable amount.

✅ Tip: If you don’t qualify for the CTC due to income, you might still qualify for the Credit for Other Dependents worth $500 for dependents like elderly parents or college-aged children.

Max Credit in 2025:

  • No kids: $632

  • 1 child: $4,215

  • 2 children: $6,983

  • 3 or more: $7,830

To qualify, you must:

  • Earn income from work or self-employment

  • Have valid SSNs for you and dependents

  • Meet income limits (under ~$63,000 for larger households)

EITC is refundable, meaning you could receive a refund even if you paid little or no tax throughout the year.

Important: You must file a tax return to receive the EITC  even if your income is below the filing threshold.

Max Credit: $2,500 per eligible student

  • 100% of the first $2,000 in qualified expenses

  • 25% of the next $2,000

Refundable: Up to $1,000

This credit is for undergraduate students enrolled at least half-time. It can be claimed for up to 4 years per student, as long as they meet income and enrollment requirements.

Qualified expenses include:

  • Tuition and fees

  • Required books and materials

  • No room and board

Tip: If you are paying off student loans, you might also be able to deduct up to $2,500 in student loan interest.

Max Credit: $2,000 per return (not per student)
Refundable? No

The LLC helps with tuition and fees for:

  • Undergraduate courses

  • Graduate-level programs

  • Vocational and professional development

There is no limit on the number of years you can claim this credit. It’s ideal for adults returning to school or taking courses to change careers.

Max Credit: $1,000 (single) / $2,000 (married)
Eligibility:

  • Must contribute to a retirement account (IRA, 401(k), etc.)

  • Must be age 18+, not a full-time student, and not claimed as a dependent

Income limits (2025):

  • $38,250 or less (single)

  • $76,500 or less (married filing jointly)

The Saver’s Credit encourages low and moderate income workers to save for retirement by giving them a credit based on their contributions.

With tax incentives for going green, the IRS offers credits for installing:

  • Solar panels

  • Energy-efficient doors and windows

  • HVAC upgrades

  • Battery storage systems

In 2025, the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit can cover up to 30% of the cost of improvements with maximum credits between $1,200 and $3,200, depending on the project.

⚡ Tip: Keep receipts and manufacturer certifications to claim these credits accurately.

Max Credit: Up to $3,000 for one child / $6,000 for two or more
This credit helps working parents offset the cost of child care or dependent care (e.g., elderly relatives).

Eligible expenses include:

  • Daycare

  • After-school programs

  • In-home babysitters

The credit is nonrefundable but can still reduce your tax bill significantly.

While not technically a credit, this above-the-line deduction helps self-employed individuals reduce taxable income.

It covers:

  • Monthly health insurance premiums

  • Dental and vision coverage

  • Coverage for your spouse and dependents

If you qualify, you can reduce your adjusted gross income (AGI) and possibly increase your eligibility for other credits.

  • They don’t file if they think they owe nothing

  • They use free filing tools that skip advanced credit screening

  • They don’t ask a tax professional about their situation

  • They assume credits only apply to “low income” or “families”

Even moderate-income households, students, and retirees can benefit from smart credit usage.

To successfully claim these credits, keep:

  • W-2s, 1099s, and income records

  • Tuition statements (Form 1098-T)

  • Dependent care receipts and provider info

  • Retirement account contribution records

  • Utility bills and receipts for energy upgrades

The IRS may request documentation later — and having it handy will make your life much easier.

You can claim most credits regardless of whether you itemize or take the standard deduction.

However, if you:

  • Have high medical bills

  • Pay large mortgage interest

  • Own rental property
    …you might benefit more from itemizing.

  • File early if you’re claiming refundable credits — refunds involving EITC or ACTC are often held until late February for fraud prevention.

  • If you miss a credit, you can amend your return (Form 1040-X) for up to 3 years.

Trending now

Nonprofit Doesn’t Mean Tax-Free: Understanding 990 Filings and IRS Rules
The Self-Employed Tax Guide for 2025: What You Can and Can’t Deduct?
Estimated Taxes Explained: When, Why, and How to Pay Quarterly”
Maximizing Your Refund: Credits You Might Be Missing in 2025