What Tax Credits Am I Eligible For?

A Guide to the EITC, Child Tax Credit, EV Credit, and More

When tax season arrives, many people focus on deductions, but tax credits are often even more valuable. A tax credit reduces your tax bill dollar for dollar—and some credits can even result in a refund if you owe little or no tax.

So, what tax credits might you be eligible for? This article breaks down the most common U.S. federal tax credits, who qualifies, and how they work, including the Earned Income Tax Credit (EITC), Child Tax Credit, electric vehicle (EV) credits, education credits, and more.

Note: Tax rules can change, and eligibility depends on your personal situation. This article is for general information, not personalized tax advice.

What Is a Tax Credit?

A tax credit directly reduces the amount of tax you owe.

• If you owe $3,000 in taxes and qualify for a $1,000 credit, your tax bill drops to $2,000.

• Some credits are refundable, meaning you can get money back even if you owe no tax.

• Others are nonrefundable, meaning they can reduce your tax to zero but not below.

Understanding which credits you qualify for can significantly lower your tax burden—or increase your refund.

Earned Income Tax Credit (EITC)

What Is the EITC?

The Earned Income Tax Credit is designed to help low- to moderate-income workers, especially those with children. It is one of the most valuable refundable tax credits available.

Who Qualifies?

You may qualify if:

• You earned income from working (wages or self-employment)

• Your income falls below certain limits

• You have a valid Social Security number

• You are a U.S. citizen or resident alien for the year

You do not need children to qualify, although the credit is larger if you have them.

How Much Is the Credit?

The amount depends on:

• Your income

• Your filing status

• The number of qualifying children

The credit can range from a few hundred dollars to several thousand dollars.

Why People Miss It

Many eligible taxpayers don’t claim the EITC because they:

• Think they earn too little or too much

• Don’t have children

• Don’t file a tax return at all

If you worked during the year, it’s worth checking.

Child Tax Credit (CTC)

What Is the Child Tax Credit?

The Child Tax Credit helps families offset the cost of raising children. It provides a credit for each qualifying child under a certain age.

Who Is a Qualifying Child?

Generally, the child must:

• Be under age 17 at the end of the year

• Be your dependent

• Live with you for more than half the year

• Have a valid Social Security number

Refundable Portion

Part of the Child Tax Credit may be refundable, often referred to as the Additional Child Tax Credit, meaning families with little or no tax liability may still receive money back.

Income Limits

The credit phases out at higher income levels, meaning high-income households may receive a reduced credit or none at all.

Credit for Other Dependents

If you support someone who doesn’t qualify for the Child Tax Credit—such as:

• An older child

• A dependent parent

• Another qualifying relative

You may be eligible for the Credit for Other Dependents, which is a smaller, nonrefundable credit.

Education Tax Credits

Education credits can help reduce the cost of college or other post-secondary education.

American Opportunity Tax Credit (AOTC)

Best for: Undergraduate students in their first four years of college.

Key features:

• Covers tuition, fees, and some course materials

• Partially refundable

• Available per eligible student

You or your dependent must be enrolled at least half-time and pursuing a degree or credential.

Lifetime Learning Credit (LLC)

Best for: Graduate students, part-time students, or people taking courses to improve job skills.

Key features:

• Nonrefundable

• Available for an unlimited number of years

• More flexible enrollment requirements than the AOTC

You generally cannot claim both credits for the same student in the same year.

Electric Vehicle (EV) Tax Credit

What Is the EV Credit?

The Clean Vehicle Credit encourages the purchase of electric and plug-in hybrid vehicles.

Who Qualifies?

Eligibility depends on:

• The vehicle (make, model, and battery requirements)

• Where the vehicle was assembled

• Your income

• Whether the vehicle is new or used

There are separate credits for:

• New clean vehicles

• Used clean vehicles (typically lower credit amounts)

Income and Price Limits

The credit is only available if:

• Your income is below certain limits

• The vehicle’s price does not exceed set thresholds

In some cases, the credit can be applied at the point of sale, reducing the purchase price immediately.

Child and Dependent Care Credit

What Is It?

This credit helps offset the cost of care for:

• Children under age 13

• A spouse or dependent who cannot care for themselves

Eligible Expenses

Expenses may include:

• Daycare

• Babysitters

• After-school programs

• Summer day camps (not overnight camps)

The care must allow you (and your spouse, if filing jointly) to work or look for work.

Premium Tax Credit (Health Insurance)

If you purchase health insurance through the Health Insurance Marketplace, you may qualify for the Premium Tax Credit.

This credit:

• Helps lower the cost of monthly insurance premiums

• Is based on household income and family size

• Is reconciled when you file your tax return

If your income changes during the year, your final credit may be higher or lower than what you received in advance.

Retirement Savings Contributions Credit (Saver’s Credit)

What Is the Saver’s Credit?

The Saver’s Credit rewards low- and moderate-income taxpayers for contributing to retirement accounts such as:

• 401(k)s

• IRAs

• 403(b)s

Why It’s Overlooked

Many people don’t realize they can get a tax credit just for saving for retirement—on top of the normal tax benefits of those accounts.

Adoption Credit

If you adopted a child, you may be eligible for the Adoption Tax Credit, which helps offset qualified adoption expenses such as:

• Adoption fees

• Court costs

• Travel expenses

This credit can be substantial but is typically nonrefundable and subject to income limits.

Energy Efficiency and Home Improvement Credits

Homeowners may qualify for credits for making energy-efficient improvements, such as:

• Installing solar panels

• Upgrading insulation

• Installing energy-efficient windows or heat pumps

Some credits apply to renewable energy systems, while others apply to smaller home upgrades.

How to Find Out Which Credits You Qualify For

To determine your eligibility:

1. Review IRS eligibility rules for each credit

2. Use reputable tax software or a qualified tax professional

3. File a tax return even if you think you don’t owe tax

Many credits are not automatic—you must claim them to receive the benefit.

Final Thoughts

Tax credits can make a major difference in your financial picture, whether you’re a worker with modest income, a parent, a student, a homeowner, or someone investing in clean energy or retirement savings. The most commonly claimed credits—like the EITC, Child Tax Credit, education credits, and EV credits—are often missed simply because people don’t realize they qualify.

If you take one lesson from this article, it’s this: always check your eligibility before filing—or skipping—a tax return. You might be leaving money on the table.