What Tax Credits Can I Qualify for in 2025?

Ivan Pantic / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

As tax season picks up steam and you are looking at tax year 2024 in your financial rearview mirror, you could save money on your tax bill or get a bigger refund thanks to certain federal tax credits. While deductions are also useful, claiming credits offers the benefit of cutting your tax liability directly.

In some cases, these credits are also refundable, giving you some money back even with a zero tax liability. While a tax professional can help you explore all the standard deductions or other options available, here are six 2025 tax credits to consider when you’re filing for 2024 to see if you qualify.

Saver’s Credit

If you’ve put money in an IRA, 401(k), 403(b) or other eligible retirement account, the Saver’s Credit could get you a tax credit worth between 10% and 50% of your 2024 contribution amount. Topping out at $1,000 for single filers and $2,000 for married couples filing jointly, the specific amount depends on your contribution, adjusted gross income (AGI) and filing status.

If you are trying to check your tax deductions or total your credit amount, it’s a good idea to know exactly what you can claim. According to the IRS, here’s who could be eligible for the Saver’s Credit in 2025:

• Filers 18 or older, not claimed as a dependent on another person’s return, and not a full-time student.
• Married couples filing jointly with adjusted gross incomes up to $76,500.
• Heads of household with adjusted gross incomes up to $57,375.
• Married individuals filing separately and singles with adjusted gross incomes up to $38,250.
• Qualified surviving spouse filers.

Earned Income Tax Credit

For those with moderate and low incomes, the Earned Income Tax Credit (EITC) is worth anywhere from $649 for filers without qualifying children to $8,046 with three or more qualifying children. Here’s a breakdown for filing taxes in 2025:

• No qualifying children: $649
• 1 qualifying child: $4,328
• 2 qualifying children: $7,152
• 3 or more qualifying children: $8,046

This refundable credit is usually limited to those between the ages of 25 and 64, and you won’t qualify if you’re someone’s dependent. Since several rules apply and figuring out your eligibility can get tricky, the IRS offers the EITC Assistant to guide you.

Child Tax Credit

If you have any children or other qualifying relatives younger than 17, you could get a maximum of $2,000 for each through the Child Tax Credit (CTC). The IRS lists several rules the qualifying child has to meet for you to get the nonrefundable credit. For example, you likely can’t get it if the child lived with someone else for most of the year.

For reference, this provision increases the maximum refundable amount per child to $1,800 in tax year 2023, $1,900 in tax year 2024, and $2,000 in tax year 2025. This is in addition to the inflation adjustment described below.

Modified adjusted gross income limits of $200,000 for single filers and $400,000 for joint filers apply to get the full amount. You won’t get anything with a modified AGI of $240,000 filing single or $480,000 filing jointly. 

The IRS also offers the refundable Additional Child Tax Credit that could apply if your CTC amount exceeds the taxes you owe. Once the CTC has reduced your tax liability to $0, the Additional Child Tax Credit can result in a refund of up to $1,600 for each child.

Child and Dependent Care Credit

The Child and Dependent Care Credit can offer some financial relief if you’ve incurred care costs for a child age 12 or younger because of your work needs. Expenses for other eligible people, including your spouse or parent, can qualify too as long as they can’t care for themselves.

Limits for eligible expenses are $3,000 for one person and $6,000 for multiple people. The IRS looks at your earned income to determine whether the nonrefundable credit will be worth between 20% and 35% of these costs. Here’s who is eligible according to the IRS: 

• You paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work.
• You (or your spouse if filing a joint return) lived in the United States for more than half of the year. 
• Special rules apply to military personnel stationed outside of the United States.

American Opportunity Tax Credit

The American Opportunity Tax Credit (AOTC) is for tax filers and their dependents who studied at least half-time at eligible postsecondary schools and haven’t attended for more than four years. The IRS offers a dollar-by-dollar credit for the first $2,000 in expenses and then 25% of an additional $2,000 in expenses. Each student can get a maximum of $2,500, with 40% of it refundable.

The student must have been in a qualifying program and not already received the credit for four years. Modified AGI limits for the maximum amount are $80,000 for single filers and $160,000 for joint filers. You can’t claim the AOTC at all with a modified AGI exceeding $90,000 as a single filer or $180,000 as a joint filer. Check this IRS tool to check your eligibility.

Lifetime Learning Credit

Getting the Lifetime Learning Credit (LLC) is possible if you’ve paid for eligible higher education costs but don’t meet the stricter AOTC requirements. It’s a nonrefundable credit for the first $10,000 spent during the year. The maximum credit is the lesser of 20% of your eligible expenses or $2,000. You can claim it each year you qualify.

There’s flexibility as long as the courses were taken at an eligible school for one academic period or more. It can work for courses at any level and doesn’t require enrollment in a degree program. However, you must meet the income criteria to get even a partial LLC amount. The modified AGI must be less than $90,000 for single filers or $180,000 for joint filers.

Share This Article: