Your 2026 Tax Guide: How to Claim Key Credits and Boost Your Refund
Tax season can feel overwhelming—like finding your way through a maze of forms and rules. But here’s the good news: with a little know-how, you can unlock credits that put real money back in your pocket.
Think of tax credits as hidden money you’ve already earned. Unlike deductions, which reduce your taxable income, credits reduce your tax bill dollar-for-dollar—and some can even increase your refund.
This guide will walk you through the most valuable credits for the 2024 tax year (filed in 2025), so you can file with confidence and keep more of your hard-earned income.
Popular Tax Credits for 2025
Here are the credits that make the biggest difference for many filers:
| Credit | Who It’s For | Max Value (2024) | Key Details |
|---|---|---|---|
| Earned Income Tax Credit (EITC) | Working individuals/families with low to moderate income | Up to $7,830 | Amount depends on income, filing status, and number of children. Learn more from the IRS. |
| Child Tax Credit | Parents with children under 17 | Up to $2,000 per child | Up to $1,700 may be refundable per child. Income limits apply. Details at NerdWallet. |
| American Opportunity Tax Credit | Students in the first 4 years of higher education | Up to $2,500 | 40% refundable (up to $1,000). Income limits apply. See Kiplinger’s overview. |
| Lifetime Learning Credit | Students in eligible education (any year) | Up to $2,000 | Non-refundable. Covers 20% of the first $10,000 in expenses. IRS info here. |
| Child & Dependent Care Credit | Parents paying for childcare while working | Up to $3,000 (1 child) or $6,000 (2+) | Percentage of expenses based on income. Learn more at ACCESS NYC. |
What You’ll Need to File
Gather these documents ahead of time to make filing smooth:
-
Income forms: W-2s and/or 1099s
-
Education form (if applicable): Form 1098-T from your school
-
Childcare records: Provider info, receipts, and amounts paid
-
Social Security numbers for yourself, your spouse, and dependents
Key Forms & How to Fill Them Out
Here’s where each credit gets reported on your 2026 return:
| Form | Purpose | Where to Find It |
|---|---|---|
| Form 1040 | Main tax return where credits are reported | IRS Form 1040 |
| Form 8863 | For education credits (AOTC and LLC) | IRS Form 8863 |
| Form 2441 | For Child and Dependent Care Credit | IRS Form 2441 |
| Form 8812 | For Child Tax Credit | IRS Form 8812 |
| Publication 596 | EITC instructions and worksheet | IRS Publication 596 |
Quick Tips to Maximize Your Refund
-
Check eligibility carefully – Income and dependency rules vary by credit.
-
Keep your info organized – Use a folder or digital file for tax documents.
-
Use the right form – Double-check you’re claiming each credit on the correct schedule.
-
Review before submitting – Simple errors can delay your refund.
Tax credits are meant to work for you. By taking the time to understand and claim what you’re eligible for, you’re not just filing a return—you’re securing your savings.
Here’s to a smoother tax season and a brighter refund in 2026!
This guide is for informational purposes. Tax rules can change, and individual situations vary. Consider consulting a tax professional for personalized advice.
