According to IRS officials who are in a hurry to get the final tax deadline of April 15 in the works, a reminder has been made that a lot of Americans aren’t making use of the tax credits available to them in full. Especially for families, students, low-income workers, and homeowners, these credits could be a minor-to-major difference to this year’s refund situation to the better.
Also, the fact is that you can have part of that money back without paying by yourself.
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Why Tax Credits Matter More Than Ever
Your tax refund this year could feel like an essential part of your budget. In a difficult year in which the costs have increased and the economy has become uncertain, therefore, it is better to stick to the IRS’s advice to the filers, which is to check out their potential qualifying of federal tax credits, most of which are still available every year.
Credits are not just plain deductions. They also decrease the amount of taxable income, which, in turn, reduces the amount owed to the government by a dollar and consequently some even are likely to turn into a cash refund.
Based on the IRS data, it is estimated that the average federal tax refund for the current year reaches $3,271, which is based on the inflation-adjusted credits.
The Most Powerful Credits You Can Still Claim in 2025
The following are the tax credits that are most likely to increase your refunds before the deadline:
1. Child Tax Credit (CTC)
Each child that is less than 17 years of age carries a child tax credit of $2,000; the additional $1,700 can flow back through the refundable Additional Child Tax Credit to your pocket, even if you are paying nothing.
To be eligible:
- You need to have a job
- Each child is supposed to have a Social Security number
- Income limits are $200,000 for individuals and $400,000 for married couples
- American Opportunity Tax Credit: Up to $2,500 for college students, books,and required supplies.
- Lifetime Learning Credit: A possibility of even $2,000 for tuition is available, not only for full-time students but also for those attending on a part-time basis and adult learners.
- The Residential Clean Energy Credit allows you to get a 30% tax credit based on the cost of your solar installation.
- Through the Home Improvement Credit, it is possible to receive $3,200 per year on energy-saving upgrades.
These must specifically apply to the homeowner’s primary place of living and also be Energy Star rated or meet IRS requirements.
What You Need to Do Prior to Filing Your Returns
- Get access to tax software or a qualified preparer – these measures can help you to make sure that you do not miss any credits.
- Check whether you are entitled to the credit on irs.gov/credits-deductions.
- File your tax return electronically and indicate a direct deposit, to receive the refund the fastest way—usually within 21 days.
Have You Already Filed Your Return?
If you figure out that you forgot to claim a credit, don’t worry, you still have the opportunity to amend your return using Form 1040-X. The IRS allows up to three years from the original due date to make corrections.
You Cannot Leave Money on the Table
Annually, millions of dollars in tax credits remain unclaimed. You may qualify for more than you think you could even if you are a working parent, student, low-income earner, or first-time homeowner.
As Danny Werfel, the IRS Commissioner, recently said to taxpayers, “It’s not just about filing. It’s about filing in a smart way too.”
