TAX TIP Maximize Your Tax Refund This Year

It’s that time of year again, and this tax season, refunds are expected to be bigger and better than ever! With the latest credits and deductions available, you could unlock thousands of dollars in tax savings.

Here’s what you need to know to maximize your refund:

1. Earned Income Tax Credit (EITC)

Potential Refund: Up to $7,430 (for families with three or more kids in 2024).

Eligibility: Low- to moderate-income earners; income limits depend on filing status and number of dependents.

How to Claim: File Form 1040 and attach Schedule EIC.

2. Child Tax Credit (CTC)

Potential Refund: Up to $2,000 per child under 17.

Eligibility: Income below $200,000 ($400,000 for married filing jointly).

How to Claim: Claim directly on your tax return.

3. Energy-Efficient Home Improvement Credit

Potential Refund: Up to $3,200 annually for installing eligible energy-efficient items like heat pumps, solar panels, or insulation.

Eligibility: Homeowners or renters who make improvements to primary residences.

How to Claim: Keep receipts and file IRS Form 5695.

4. Education Credits (American Opportunity Credit)

Potential Refund: Up to $2,500 per eligible student.

Eligibility: For undergraduates in their first four years of college, with income below $80,000 ($160,000 if married filing jointly).

How to Claim: Use Form 8863.

5. Lifetime Learning Credit (LLC)

Potential Refund: Up to $2,000 per household for higher education expenses.

Eligibility: No age limit; income below $69,000 ($138,000 if married filing jointly).

How to Claim: Use Form 8863.

6. Saver’s Credit

Potential Refund: Up to $2,000 ($4,000 for couples) for contributing to retirement accounts.

Eligibility: Income below $36,500 ($73,000 for married filing jointly).

How to Claim: Report on your tax return.

7. Premium Tax Credit

Potential Refund: Thousands in subsidies for health insurance purchased through the marketplace.

Eligibility: Based on household income and family size.

How to Claim: Use Form 8962.

8. Adoption Credit

Potential Refund: Up to $15,950 for qualified adoption expenses.

Eligibility: Expenses related to adopting a child.

How to Claim: File Form 8839.

9. Recovery Rebate Credit

Potential Refund: Extra stimulus payments missed in 2021-2023.

Eligibility: If you didn’t receive the full stimulus payments you were entitled to.

How to Claim: File Form 1040 with the Recovery Rebate section.

10. Self-Employment Deductions

Potential Refund: Deductions for health insurance, home office, and other business expenses.

Eligibility: Freelancers, independent contractors, and small business owners.

How to Claim: Use Schedule C and Schedule SE.

11. Maximizing Your Refund

Combine multiple eligible credits and deductions to potentially increase your refund. For example, a family with three children, claiming the EITC, CTC, and Saver’s Credit, could easily exceed $7,000 in refunds.

Tip: Work with a tax professional or use tax software to ensure you claim everything you qualify for.

12. Earned Income Tax Credit (EITC)

Potential Refund: Up to $7,430 (for families with three or more kids in 2024).

Eligibility: Low- to moderate-income earners; income limits depend on filing status and number of dependents.

How to Claim: File Form 1040 and attach Schedule EIC.

13. Child Tax Credit (CTC)

Potential Refund: Up to $2,000 per child under 17.

Eligibility: Income below $200,000 ($400,000 for married filing jointly).

How to Claim: Claim directly on your tax return.

14. Energy-Efficient Home Improvement Credit

Potential Refund: Up to $3,200 annually for installing eligible energy-efficient items like heat pumps, solar panels, or insulation.

Eligibility: Homeowners or renters who make improvements to primary residences.

How to Claim: Keep receipts and file IRS Form 5695.

15. Education Credits (American Opportunity Credit)

Potential Refund: Up to $2,500 per eligible student.

Eligibility: For undergraduates in their first four years of college, with income below $80,000 ($160,000 if married filing jointly).

How to Claim: Use Form 8863.

💡 Pro Tip:

Combine eligible credits to maximize your refund. For example, a family with three children could receive over $7,000 by claiming multiple credits!

Don’t leave money on the table. Filing with the right strategies ensures you take advantage of every benefit available.

Schedule your tax preparation with us today to make this tax season your most rewarding yet.

Maximize My Refund Now