Tax season is once again here. You may be entitled to a refund even though you may not owe tax or even be required to file a tax return. These are called Refundable Credits. There are also Non-Refundable Credits that reduce the amount of your tax but cannot reduce it lower than zero. If you qualify for any of the following credits, it is best for you to file a tax return to claim your credit.
Here are several credits that help people.
The Earned Income Tax Credit (EITC) helps low to moderate income workers. The maximum credit is $8,046 but varies depending on a number of factors including income and number of dependents. The taxpayer must have earned income. This can be from employment or self-employment. Generally, the adjusted gross income must be below $68,675, though the amount varies depending on family size and filing status. To find out if you qualify for thisrefundable credit, go to Earned Income Tax Credit (EITC) | Internal Revenue Service
The Additional Child Tax Credit (ACTC) helps families with children. It is a refundable credit up to $1,700 per child. This means you can receive a credit of $1,700 even if you do not owe any tax. However, you must have income of at least $2,500. The Child Tax Credit gradually increases this credit to $2,200 as your income increases. Generally, the qualifying child must be someone you could claim as a dependent on your tax return. The child must be under age 17 as of December 31, 2025. You must provide more than half the support for the child for the year and claim the child as a dependent on your return. To find out if you qualify for this refundable credit, to go Child Tax Credit | Internal Revenue Service
The Child and Dependent Care Credit is designed to help families pay for care for a child or relative so the parents can work , look for work, or attend school. The amount of the credit is based on your income and a percentage of expenses. A qualifying person is generally a dependent under 13 years, a disabled spouse, or dependent of any age who is incapable of self-care and lives with you more than half of the year. To find out if you qualify for this non-refundable credit, go to Child and Dependent Care Credit information | Internal Revenue Service
The Premium Tax Credit (PTC) helps individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace. You cannot be eligible for other minimum essential coverage like affordable employer plans, Medicare or Medicaid. Amount of the credit is subject to minimum and maximum income. You can qualify for the credit if your premium costs exceed 8.5% of your income. Contact a preparer or go to irs.gov if you think you may qualify for the credit. To find out if you qualify for this refundablecredit, go to The Premium Tax Credit – The basics | Internal Revenue Service
The Adoption Credit helps families with adoption fees, attorney fees, court fees, travel expenses for adopting an eligible child. This covers international, domestic, and foster care adoptions. The credit is limited to $17,280 with $5,000 being refundable. The child must be under age 18, or physically or mentally incapable of self-care. To find out if you qualify for this partially refundable credit, go to Adoption Credit | Internal Revenue Service
The Credit for Other Dependents may be claimed for a dependent that does not qualify for other credits. The dependent may be any age, may be parents or relatives supported by the taxpayer, or a dependent living with the taxpayer who is not related. They must be claimed as a dependent on the taxpayer’s return and cannot be used to claim the child tax credit. The maximum credit is $500 and begins to phase out when income is more than $200,000 (single/HOH filers), or $400,000 (joint filers). To find out if you qualify for this non-refundable credit, go to Understanding the Credit for Other Dependents | Internal Revenue Service
American Opportunity Tax Credit (AOTC) is available if you paid qualified education expenses for an eligible college student. The credit is up to $2,500 per year. Your modified adjusted gross income must be less than $90,000 (single/HOH filing), or 180,000 (joint filing). The student must be enrolled at least half-time in an eligible educational institution. Tuition, fees, and required course materials are qualified expenses. The expenses must have been paid by you, your spouse, or a third party. To find out if you qualify for this refundable credit, go to Education credits - AOTC and LLC | Internal Revenue Service
The Lifetime Learning Credit (LLC) is similar to the American Opportunity Tax Credit but there are some differences and it is non-refundable. The student must be enrolled in an eligible educational institution, take one or more courses for at least one academic period, and the course can be to acquire or improve job skills. The student is not required to pursue a program leading to a degree or other recognized education credential. The LLC is available for all years of post-secondary education and can be up to $2,000 per return. To find out if you qualify for this non-refundable credit, go to Education credits - AOTC and LLC | Internal Revenue Service
For the American Opportunity Tax Credit and the Lifetime Learning Credit, you cannot claim both credits in the same year for the same student. The AOTC is only available for the first four years of post-secondary education (usually undergraduate degree) and can only be claimed up to four times for a student. The LLC can be claimed in any year when a student has qualified expenses.
Remember, you must file a tax return to claim a refund even if you are not required to file based on your income. If you think you may be eligible for a credit, contact a preparer to file a return so you can receive a refund.