What are tax breaks?

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.