Getting a tax refund often feels like luck, but it usually comes down to knowing which tax credits you qualify for and claiming them correctly. Tax credits can help reduce your tax bill dollar-for-dollar. Some are even refundable, meaning you could get money back from the IRS even if you don’t owe any taxes.
GOBankingRates spoke to David A. Perez, a tax professional and founder of Tax Maverick, who said many people miss out on tax credits because they don’t understand how they work or if they qualify. He shared five ways you may be able to get money back from the IRS using tax credits.
1. Child Tax Credit
Families with kids under the age of 17 may qualify for a non-refundable Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC), a refundable part of the CTC. “It’s normally $2,000 per child,” Perez said. In addition, “There’s an ACTC, which could be a refundable credit up to $1,700 per qualifying child for 2025.”
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2. Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is common for low- to moderate-income earners.
“It’s based on family size and income,” said Perez. “This can be a big refund for somebody. I mean, typically this is like $6,000 – $7,000 that you could get back in a refund if you qualify.”
To qualify, you must have earned not more than $11,950 in investment income in 2025. And if you’re working, the income ranges from $19,104 for singles with no children to $68,675 for married couples filing jointly with three or more children.
3. American Opportunity Tax Credit
If you or your child are in college, education credits can reduce what you owe in taxes or get a partial refund. Your modified adjusted gross income must not be more than $90,000 and $180,000 or less for married filing jointly.
“American Opportunity Tax Credit is a credit for those first four years in college. It’s up to $2,500, and $1,000 of that $2,500 could be a refundable credit,” said Perez. And if you’re still continuing your education past the four years, Perez says you can use the lifetime learning credit, which is nonrefundable.
4. Premium Tax Credit
If you purchase health insurance through the Health Insurance Marketplace, you may qualify for a Premium Tax Credit. Perez describes it as “a credit used to apply to the health care that is obtained through the marketplace, which is the Affordable Care Act.”
5. Child and Dependent Care Credit
Childcare is expensive. That’s why the government put in place a tax code that offers some relief. This means you could get credit for sending your children to daycare. “The Child and Dependent Care Credit is for daycare for children under 13 years old or over 13 if they’re disabled,” said Perez.
6. Credit for the Elderly or the Disabled
Older adults aged 65 or older and individuals with disabilities may also qualify for additional tax benefits. Perez noted that it can increase your standard deduction. “If you increase your standard deduction, that means you report less income.”
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This article originally appeared on GOBankingRates.com: 6 Ways To Get Money Back From the IRS Using Tax Credits — According to a Tax Pro
