Tax Credits and Refunds You Might Be Leaving on the Table
By The Dime Daily Editorial Team9 min read
Published: February 18, 2026Last updated: June 1, 2026
Reviewed by: The Dime Daily Research Team
Tax season is one of the biggest financial opportunities of the year for low- and moderate-income households — if you know what you're owed. Billions of dollars in tax credits go unclaimed every year because people don't know they qualify, don't file at all, or pay a tax preparer to file a return that qualifies for free filing.
This guide covers the major refundable and non-refundable tax credits available for the 2024 tax year (filed in 2025), with the actual dollar amounts, who qualifies, and exactly where to claim them for free.
Key distinction
A refundable tax credit can give you money back even if you owe nothing in taxes. A non-refundable credit can only reduce your tax bill to zero — it cannot generate a refund. The credits below are labeled accordingly.
| Credit | Maximum Amount | Refundable? | Who Qualifies (simplified) | IRS Form |
|---|---|---|---|---|
| Earned Income Tax Credit (EITC) | Up to $7,830 (3+ children); $4,213 (1 child); $632 (no children) | Yes — fully refundable | Workers with earned income; income limits vary by family size | Schedule EIC |
| Child Tax Credit (CTC) | $2,000 per qualifying child under 17 | Partially — up to $1,700 refundable (ACTC) | Child under 17; $400k MFJ / $200k single income phase-out | Schedule 8812 |
| Child and Dependent Care Credit | 20–35% of expenses up to $3,000 (1 dependent) or $6,000 (2+) | No (non-refundable) | Pay for care to work or look for work; child under 13 or disabled dependent | Form 2441 |
| American Opportunity Tax Credit (AOTC) | $2,500 per student per year (first 4 years of college) | Partially — up to $1,000 refundable | Student in first 4 years of college; income under $90k single / $180k MFJ | Form 8863 |
| Lifetime Learning Credit (LLC) | $2,000 per tax return | No (non-refundable) | Any year of higher education or job training; income under $90k single / $180k MFJ | Form 8863 |
| Saver's Credit | $1,000 single / $2,000 MFJ (10–50% of retirement contributions) | No (non-refundable) | Contributed to 401k, IRA, etc.; income under $36,500 single / $73,000 MFJ (2024) | Form 8880 |
| Premium Tax Credit | Varies — covers portion of ACA marketplace plan premiums | Yes — fully refundable | Enrolled in ACA marketplace plan; income 100–400% FPL (or above with enhanced subsidies) | Form 8962 |
The Earned Income Tax Credit (EITC)
The EITC is the most valuable credit for working people with low to moderate income. For the 2024 tax year, the maximum credit amounts are:
- Three or more children: up to $7,830
- Two children: up to $6,960
- One child: up to $4,213
- No children: up to $632
Crucially, the EITC is fully refundable — even if you owe zero in federal income taxes, you receive the full credit amount as a refund. The IRS estimates that about 1 in 5 eligible workers don't claim it, primarily because they don't file a return or don't know they qualify.
You must have earned income (wages, salary, or self-employment income) and meet income limits that vary by filing status and number of children. Investment income above $11,600 disqualifies you. Use the IRS EITC Assistant tool at IRS.gov to check your eligibility in minutes.
The Child Tax Credit
If you have qualifying children under 17, the Child Tax Credit provides up to $2,000 per child for the 2024 tax year. Up to $1,700 of that is refundable through the Additional Child Tax Credit (ACTC) — so even families with little or no tax liability can receive a meaningful refund. You need at least $2,500 of earned income to qualify for the refundable portion.
The credit begins to phase out at $200,000 for single filers and $400,000 for married filing jointly, so most working families qualify in full. Complete Schedule 8812 when filing your return.
The Child and Dependent Care Credit
If you paid for childcare, preschool, daycare, or an after-school program so you could work or look for work, you may be able to claim between 20% and 35% of those costs as a credit. The qualifying expense limit is $3,000 for one qualifying person, or $6,000 for two or more.
The child must be under 13. This credit is non-refundable, meaning it reduces your tax bill but won't generate a refund. However, if you have an EITC or refundable Child Tax Credit alongside it, the combination can still result in a significant refund.
Education credits: AOTC and LLC
The American Opportunity Tax Credit (AOTC) covers up to $2,500 per student per year for the first four years of college — and 40% of that (up to $1,000) is refundable. If you or a dependent is in the first four years of higher education and income is below $90,000 single / $180,000 MFJ, this is one of the most valuable education benefits available.
The Lifetime Learning Credit (LLC) covers up to $2,000 per tax return for any year of higher education or job-skills training — not limited to the first four years. It's non-refundable but available for more types of courses. You can claim AOTC for one student and LLC for another in the same year.
The Saver's Credit
If you contributed to a 401(k), IRA, SIMPLE IRA, 403(b), or similar retirement account during the year, the Saver's Credit rewards you with a credit of 10%, 20%, or 50% of your contributions — up to $2,000 in contributions for single filers ($4,000 for married filing jointly).
This is one of the most overlooked credits for lower-income workers. For 2024, the income cutoffs are $36,500 for single filers and $73,000 for married filing jointly. Even a small retirement contribution — $200 or $300 — can generate a meaningful credit for qualifying filers.
Premium Tax Credit (ACA marketplace)
If you purchased health insurance through the ACA marketplace (HealthCare.gov) and your income is between 100% and 400% of the Federal Poverty Level, you likely qualify for the Premium Tax Credit, which reduces your monthly premium. Enhanced subsidies through 2025 extend help to higher income levels. If you enrolled but didn't take advance payments, claim the full credit on Form 8962.
See our complete guide on free and low-cost healthcare options for the full picture.
File for free — and keep every dollar
You should never pay hundreds of dollars to claim credits that belong to you. Two free options for the 2024 tax year:
- VITA (Volunteer Income Tax Assistance): Free, IRS-certified tax preparation for households earning approximately $67,000 or less. Trained volunteers identify every credit you qualify for. Find a site at IRS.gov/vita.
- IRS Free File: Free federal tax preparation using name-brand software for filers with AGI under $79,000. Available at IRS.gov starting January each year.
Also see our guide on government assistance programs — many VITA sites also help you apply for SNAP, Medicaid, and other programs at the same visit.
Frequently asked questions
Sources
- 1.IRS — Earned Income Tax Credit (EITC) Central — IRS official EITC eligibility rules, income limits, and credit amounts for 2024
- 2.IRS — Child Tax Credit and Credit for Other Dependents — IRS official Child Tax Credit rules, refundable amounts (ACTC), and eligibility for 2024
- 3.IRS — Child and Dependent Care Credit — IRS rules for qualifying expenses, credit percentages, and income phase-out
- 4.IRS — American Opportunity Tax Credit — IRS rules for the American Opportunity Tax Credit (up to $2,500 per student; 40% refundable)
- 5.IRS — Retirement Savings Contributions Credit (Saver's Credit) — IRS income limits and credit rates for the Saver's Credit (2024 tax year)
- 6.IRS — Free File: Do Your Federal Taxes for Free — IRS Free File program for AGI under $79,000 (2024 tax year)
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