Tax breaks or credits reduce the amount of tax you owe — or increase your tax refund — dollar for dollar. Certain credits may give you a refund even if you don't owe any tax.
Types of credits
- Family and Dependent Credits:
- Child Tax Credit
- Dependent Care Credit
- Adoption Credit
- Income and Savings Credits:
- Earned Income Tax Credit
- Saver's Credit (Retirement Savings Contributions Credit)
- Foreign Tax Credit
- Excess Social Security and RRTA tax withheld
- Credit for Tax on Undistributed Capital Gain
- Credit for Prior Year Minimum Tax
- Homeowner Credits
- Electric Vehicle Credits
- Healthcare Credits:
- Premium Tax Credit
- Education Credits:
- American Opportunity Credit and Lifetime Learning Credit
You can learn more about deductions and credits in this article.