Common Tax Credits You Might Be Missing Out On

13 October 2025

Let's be honest—tax season is rarely anyone’s favorite time of year. Between gathering documents, double-checking forms, and trying not to scream at your computer, it's easy to feel overwhelmed. But here's the silver lining: tax credits. Yep, those beautiful, magical reductions that can shave hundreds—sometimes thousands—off your tax bill. You might already know about a few, but what if I told you there are several common tax credits you could be totally missing out on?

That’s right. Many people leave money on the table each year simply because they don’t know what they qualify for. Let's fix that. In this guide, we're diving deep into several tax credits that you might be overlooking, and how you can claim them to boost your refund or reduce your tax liability.

What Exactly Is a Tax Credit?

Before we jump into the juicy part, let’s clear something up.

A tax credit is not the same as a tax deduction. A deduction reduces your taxable income, while a credit directly reduces your tax bill dollar-for-dollar. So if you owe $1,000 and you have a $500 tax credit, now you owe only $500. Simple, right?

And some credits are refundable, which means if your credit is more than what you owe, you could get the difference back in your refund. Now we’re talking!

So, let’s dive into the common tax credits you might be missing out on—and how to take full advantage.

1. Earned Income Tax Credit (EITC)

Let’s kick things off with a big one.

The Earned Income Tax Credit is designed for low to moderate-income workers, and it’s one of the most substantial credits available. Depending on your income, marital status, and number of children, this credit can be worth up to $7,000+.

Why You Might Be Missing It

Many people mistakenly believe they don’t qualify—especially single adults without kids. But even if you're child-free, you might still be eligible depending on your income.

Pro Tip

Use the IRS EITC Assistant online to see if you qualify. It’s super handy and takes just a few minutes.

2. Child Tax Credit (CTC)

Got kids? This one’s for you.

The Child Tax Credit provides up to $2,000 per child under 17, and a portion of it is refundable (that’s free money, friend!). This credit helps families handle the (very real) costs of raising children.

Why You Might Be Missing It

If your child turned 17 during the tax year, you might think the benefit is gone—spoiler: it partially is. But you might still qualify for the Credit for Other Dependents, which gives you up to $500 for dependents aged 17 and older.

3. Child and Dependent Care Credit

If you’re paying for childcare so you can work or go to school, this credit could ease some of that financial pressure.

You can claim a percentage of what you pay for daycare, preschool, or even a nanny. Depending on your income and number of children, you could get up to $4,000 (for one child) or $8,000 (for two or more).

Why You Might Be Missing It

Some folks don’t realize that summer camps and after-school programs may qualify. So if you paid for those, keep your receipts!

4. Saver’s Credit (Retirement Savings Contribution Credit)

This one rewards you for saving for retirement. Let that sink in—you’re getting free money for putting money away for your own future. That’s the financial equivalent of a high five!

Who Can Qualify?

If your income falls within certain limits and you contributed to an IRA or workplace retirement account, you might snag a credit of up to $1,000 ($2,000 for couples).

Why You Might Be Missing It

It’s mostly unknown because it's buried in the tax forms and doesn’t apply if your income is too high. But if you’re in the low to moderate-income zone, it’s worth checking.

5. American Opportunity Credit

If you're paying for college or other higher education—either for yourself or a dependent—you’re gonna want to pay attention.

The American Opportunity Credit allows you to claim up to $2,500 annually for the first four years of post-secondary education.

Why You Might Be Missing It

Many people don’t know it covers not just tuition, but also books, supplies, and equipment. Or they assume once they’ve claimed it one year, they can't again. But you can claim it for four tax years per student.

6. Lifetime Learning Credit (LLC)

Think of this as the cool, older cousin of the American Opportunity Credit. It’s there for anyone taking college or professional development courses—even if you're not pursuing a degree.

You can get up to $2,000 per return, and there’s no limit on how many years you can claim it.

Why You Might Be Missing It

It doesn’t matter how old you are or if you’re part-time—you can still qualify. This credit is perfect for career-changers or lifelong learners.

7. Premium Tax Credit (PTC)

If you buy health insurance through the Health Insurance Marketplace, this credit helps lower your monthly premiums.

The amount varies based on your income, family size, and the cost of coverage in your area.

Why You Might Be Missing It

Sometimes, people don’t realize this credit isn’t automatic. If you underestimated your income during the year, you might owe some back—or better yet, you might be entitled to more than you received upfront.

8. Residential Energy Efficient Property Credit

Making your home more energy-efficient? Uncle Sam wants to reward you.

This tax credit lets you claim a percentage of the cost of installing solar panels, wind turbines, or energy-efficient water heaters. It’s as green as it is rewarding.

Why You Might Be Missing It

People often overlook this because it requires a bit more paperwork—and receipts. But if you've invested in renewable energy, don't let that paperwork scare you away from a serious tax break.

9. Adoption Credit

Planning to grow your family through adoption? The IRS offers a tax credit to help offset adoption-related expenses, including court fees, attorney costs, and travel expenses.

Why You Might Be Missing It

This one requires a good understanding of allowable expenses, but it can potentially give you over $14,000 in credits per child. So it’s totally worth the effort.

10. Credit for the Elderly or Disabled

If you’re over 65 or retired with a permanent disability, you might qualify for this overlooked credit.

It’s not huge—usually between $3,750 and $7,500—but every little bit helps.

Why You Might Be Missing It

This one flies under the radar because the income limits are pretty strict. But if you—or a family member—qualify, it’s worth checking out.

11. Electric Vehicle Tax Credit

Bought a new electric or plug-in hybrid car? You could be eligible for a tax credit of up to $7,500. That’s a big chunk of change for going green!

Why You Might Be Missing It

Not all EVs qualify, and the credit can phase out once the manufacturer sells a certain number of vehicles. Always check if the model and year still qualify before filing.

12. State-Specific Tax Credits

Don’t forget—your state might offer its own tax credits for education, child care, and even break for renters or seniors.

Why You Might Be Missing It

Most people only focus on their federal taxes and ignore what their state might offer. But with a quick check of your state’s Department of Revenue website, you could uncover hidden gems.

Final Thoughts: Don’t Let These Credits Slip Away

Filing taxes can feel like a chore, but it’s also one of the best times to uncover financial wins hiding in plain sight. These tax credits are like coupons for your tax bill, just waiting to be clipped. Every dollar you save is a dollar that stays in your pocket—or better yet, gets invested, saved, or spent on something (or someone) you love.

Remember: it pays to pay attention. Whether you're filing your own return or working with a tax pro, ask questions, double-check your eligibility, and keep good records. Missing out on these credits could literally cost you thousands!

One Last Tip…

Not sure if you qualify for some of these tax credits? Don’t second-guess. Use IRS tools, talk to a financial advisor, or get help from a tax preparer. There’s no shame in asking for help—especially when it means keeping more of your hard-earned money.

So go ahead. Turn tax season from a stress-fest into a mini financial victory.