02/05/2026
Tax credits for Individuals
A tax credit reduces the amount of income taxes you owe dollar-for-dollar. Some tax credits are refundable which means that if your tax bill is less than the amount of a refundable credit, they can get the difference back in your refund.
Non Refundable Tax credits
Child Tax Credit for 2025: Up to $2,200 per qualifying child.
Child and Dependent Care Credi: Reduces federal income tax by claiming the credit for a child and or dependent care expenses that allows you to work.
The Saver’s Credit may be available if you made eligible contributions to your IRA or employer-sponsored retirement plan. The maximum credit is $1,000 ($2,000 if married filing jointly). *Income limits apply.
Refundable tax credits
Earned Income Tax Credit: Helps low to moderate-income workers and families. The amount of the credit do vary based on income, family size and filing status.
Premium Tax Credit is available to taxpayers who buy their health insurance through the Health Insurance Marketplace and meet other criteria. It’s a refundable credit based on the taxpayer’s income and the cost of their healthcare plan.
Fuel Tax Credit may be claimed if fuel was purchased for use for off-highway business and farming purposes.
Partially Refundable Tax Credits
Additional Child Tax Credit: Refundable portion of the CTC. For 2025, up to $1,700 per qualifying child may be refundable.
Adoption Tax Credit: Available to taxpayers who finalized an adoption in 2025 or started the adoption process before 2025. The maximum amount, for 2025, is $17,280 per eligible child. The refundable amount is up to $5,000 per qualifying child.
American Opportunity Tax Credit: Helps to offset qualifying education expenses for an eligible college student. The amount is up to $2,500 per year and up to $1,000 is refundable.
Visit:
https://www.irs.gov/newsroom/tax-credits-for-individuals-what-they-mean-and-how-they-can-help-refunds
