Key takeaways
- Credits reduce your tax bill dollar for dollar and are worth more than deductions.
- The Earned Income Tax Credit is frequently unclaimed by people who qualify.
- Federal home energy improvement credits and the EV credit are no longer available for new purchases.
Every year, people leave money on the table by missing credits and deductions they qualify for. Here are some of the most commonly overlooked.
1. Earned Income Tax Credit (EITC)
A refundable credit for low- and moderate-income workers. The IRS estimates that a significant share of eligible people don’t claim it. Eligibility depends on income, filing status and number of children. Use the IRS’s EITC Assistant to check.
2. Child Tax Credit
Worth up to $2,200 per qualifying child under 17, with part of it refundable. Each child needs a valid Social Security number.
3. Child and Dependent Care Credit
If you pay for child care or adult dependent care so you can work, you may get a credit for part of those costs. You may also be able to use a dependent care FSA through work; its limit rose to $7,500 in 2026.
4. Saver’s Credit
Low- and moderate-income workers who contribute to a 401(k) or IRA may get a credit for part of their contribution.
5. Education credits
The American Opportunity Tax Credit and Lifetime Learning Credit can offset college or job training costs. You can also deduct up to $2,500 of student loan interest, subject to income limits.
6. Educator expenses
Eligible teachers can deduct up to $300 of out-of-pocket classroom expenses.
7. HSA contributions
Contributions you make to a health savings account outside of payroll are deductible, even if you don’t itemize. See our HSA guide.
8. The new deductions
Tips, overtime, car loan interest and a senior deduction are new for 2025 through 2028. Read how they work.
9. State and local taxes (SALT)
If you itemize, you can deduct up to $40,400 of state and local taxes in 2026, up from $10,000 before 2025. The cap phases down for incomes above $505,000, but never below $10,000. In high-tax states, this may make itemizing worthwhile again.
Breaks that ended
Under the 2025 tax law, several popular credits ended:
- Energy efficient home improvement credit and residential clean energy credit (for things like heat pumps, insulation and solar) ended for property placed in service after Dec. 31, 2025.
- Clean vehicle (EV) credits ended for vehicles acquired after Sept. 30, 2025.
Some utilities and states still offer their own rebates, so check before you buy.
Get help for free
IRS Free File, VITA and TCE offer free help for many taxpayers. See how to file for free.
WalletJolly may earn a commission from links on this page. Rates, prices and rules mentioned are current as of Oct. 28, 2026 and can change. This article is general information, not financial, tax, insurance or legal advice.
