If you haven’t filed your taxes yet, there’s still time to take advantage of deductions and credits (Johnston, 2023).
- Child tax credit
In 2021, the new child tax credit becomes completely refundable. Each parent of a dependent who is at least 18 years old is eligible for $500.
- Credit for recovery rebates (for a missing stimulus payment)
If you missed a stimulus payment, or if you weren’t paid the full amount, you may be eligible for a refund.
- Earned income tax credit
It reduces the amount of taxes owed by low- to moderate-income workers and families.
- Lifetime learning credit
It is worth 20% of the first $10,000 you pay in qualifying higher education costs.
- American opportunity tax credit
It is exclusively for first-time college students. This credit is worth up to $2,500 and is partially refundable.
- Child and dependent care credit
You may be able to get a tax break or refund for child and dependent care expenses.
- Saver’s credit
You may qualify for the saver’s credit if you make contributions to an individual retirement account or employer-sponsored retirement plan.
- Adoption tax credit
It covers adoption fees, court costs, attorney fees, and other expenses.
- Medical and dental expenses
With insurance, you might have to pay for medical and dental expenses out of pocket.
- Residential energy credit
You may be eligible for a residential energy credit if your house is energy-efficient.
- Student loan interest deduction
If you paid interest on private loans or resumed federal student loan payments, you may qualify for a tax credit.
- Health savings account contribution
If you have a health savings account, contributions to it are not subject to federal income tax.
- Charitable contribution deductions
It is one of the most common ways to get a tax deduction.