Key Takeaways
- The Child Tax Credit is up to $2,200 per child, with up to $1,700 available as a refundable payment even if you owe no taxes.
- Adoptive parents can now claim a credit of up to $17,280, with up to $5,000 of that amount now fully refundable.
- If you care for elderly parents or adult relatives who don’t qualify for the Child Tax Credit, you may still be eligible for the $500 Credit for Other Dependents.
- Students and parents can save up to $2,500 through the American Opportunity Tax Credit for undergraduate costs or up to $2,000 via the Lifetime Learning Credit for graduate and professional courses.
- To qualify for the $7,500 new EV or $4,000 used EV credits, you must have entered into a binding purchase agreement on or before September 30, 2025.
- 2025 is a “use it or lose it” year for many energy credits for upgrades like solar panels, heat pumps, and energy-efficient windows.
36% of Americans aren’t confident they’re maximizing deductions and credits when they file their taxes.
Every year at tax time, Colorado Springs filers come to me because they know they’re missing out on opportunities for savings.
So, today, I want to make sure you don’t miss those. Here’s a list of the tax credits you might be able to claim when you file this year.
What tax credits can families qualify for?
A few prominent ones come to mind:
Child Tax Credit: For the 2025 tax year, the Child Tax Credit offers up to $2,200 per qualifying child under age 17. The credit begins to phase out once income exceeds $200,000 ($400,000 for married couples filing jointly). Eligibility depends on several factors, like age, relationship, residency, and income.
Additional Child Tax Credit: The ACTC is the refundable portion of the Child Tax Credit. That means even if your tax bill is zero, you could still receive money back. For 2025, the refundable portion is capped at $1,700 per qualifying child.
Child and Dependent Care Credit: If you paid for care so you could work — whether for young children, a disabled dependent, or a disabled spouse — this credit might be worth your attention.
The CDCC can cover up to 35% of qualifying care expenses, capped at $3,000 for one dependent or $6,000 for two or more. Childcare, daycare, after-school programs, and certain caregiving arrangements may qualify.
Adoption Tax Credit: For 2025, you can claim an Adoption Credit of up to $17,280 per child (with up to $5,000 refundable). Additionally, if your employer provides Adoption Assistance, you can receive up to $17,280 tax-free.
While you can use both programs for the same adoption, there’s no double-dipping allowed. You can’t claim the tax credit for an expense that your employer already paid for. However, if you adopt a child with special needs, you automatically qualify for the full $17,280 credit regardless of your actual costs.
Credit for Other Dependents: Supporting someone who doesn’t fit the Child Tax Credit rules? The $500 Credit for Other Dependents may apply. This often covers older children, elderly parents, or other financially supported relatives. The phaseout mirrors the CTC: $200,000 single, $400,000 joint.
What tax credits can workers and students claim?
Earned Income Tax Credit: For tax year 2025, the EITC is worth up to $8,046 depending on income, filing status, and number of qualifying children.
It’s fully refundable, which means eligibility matters even if your tax bill doesn’t feel significant. The rules are detailed, especially around investment income and filing status, so shoot me a reply, and we can start a conversation about your eligibility.
Premium Tax Credit: If you purchased health insurance through the marketplace, the PTC helps offset premium costs.
Some taxpayers receive it in advance through lower monthly premiums. Others claim it at tax time. Either way, your income, household size, and coverage details have to meet specific requirements to qualify.
American Opportunity Tax Credit: If you have a kid in college or are a college student yourself, the AOTC offers up to $2,500 per eligible student for qualified tuition, fees, and course materials.
It’s partially refundable, which means it can generate a refund even after reducing your tax bill to zero. But note that this credit is limited to four years per student and has strict eligibility rules (are you sensing a pattern here?).
Lifetime Learning Credit: The LLC allows up to $2,000 per return for qualified education expenses — whether for yourself, your spouse, or a dependent. Unlike the AOTC, it’s not refundable. But it’s far more flexible. Graduate courses, professional development, and part-time education often qualify.
Saver’s Credit: If you contributed to a retirement account and fall within income limits, the Saver’s Credit can reduce your tax bill by up to $1,000 ($2,000 for married couples).
Can I claim clean energy or EV credits?
Potentially, though timing is especially critical in this category.
Clean Vehicle (EV) Credit: EV purchases made before September 30, 2025, may qualify for up to $7,500 for new EVs, or up to $4,000 for used EVs
Energy-Efficient Home Credits: Several energy credits expired at the end of 2025, including:
Energy Efficient Home Improvement Credit: up to $1,200 annually
Heat pump and clean heating upgrades: up to $2,000 annually
Residential Clean Energy Credit for solar and renewables
So, if you made upgrades in 2025, now’s the time to cash in the benefits.
Alternative Fuel Refueling Property Credit: Installing EV charging equipment or clean fuel refueling property at your North Colorado Springs home or business may qualify for this credit, provided location requirements are met.
What other credits could I qualify for this year?
A few honorable mentions that might be worth looking into for you:
Foreign Tax Credit: If you paid income tax to another country, you may be eligible for a credit — rather than a deduction — to avoid double taxation. In most cases, the credit produces a better result than the deduction, but it’s worth calculating both.
Elderly or Disabled Credit: Taxpayers age 65 or older (or under 65 with permanent disability and taxable disability income) may qualify, as long as income limits are met.
Final thoughts
Almost all of these credits come with specific eligibility requirements and thresholds. And we haven’t even begun talking about deductions you could qualify for, too.
I handle all of this for my Colorado Springs clients. By putting your taxes into my hands, you never have to worry about missing out on savings because the IRS jargon is too overwhelming.
I’m here to make it make sense for you, and to make sure you claim every credit and deduction you’re eligible for.
FAQs
“Can I claim the Child Tax Credit if I don’t owe taxes?”
Yes, you can receive up to $1,700 per child as a refund check even if your tax bill is zero. While the full $2,200 credit reduces what you owe, the “Additional Child Tax Credit” portion ensures low-income earners still get a cash refund.
“Is the $500 Credit for Other Dependents still available in 2026?”
Yes, this $500 non-refundable credit is a permanent part of the tax code for dependents who don’t qualify for the Child Tax Credit. It typically covers elderly parents, adult children in college, or other relatives you support financially.
“What is the maximum Earned Income Credit for filing in 2026?”
For the 2025 taxes you are filing now, the maximum EITC is $8,046 for families with three or more children. The credit is fully refundable, meaning you get the entire amount back even if you owe no income tax.
“How much of the 2026 Adoption Credit is refundable?”
For the current filing season, the Adoption Credit is worth up to $17,280, with a new $5,000 refundable portion. This allows eligible families to receive a significant refund check immediately rather than carrying the credit forward to future years.
“Is the EV tax credit still available for cars bought in 2026?”
No, as the federal Clean Vehicle Credit expired on September 30, 2025. To claim the $7,500 credit on your current return, you must have acquired the vehicle and took delivery before that cutoff.
“Does the $11,950 investment income limit disqualify me from the EITC?”
Yes, if your interest, dividends, or capital gains exceed $11,950 for 2025, you are ineligible for the Earned Income Tax Credit. This is a strict limit that applies regardless of how little you earned from your job.