With tax season in full swing, many Americans are searching for ways to boost their refunds. The good news? You could be eligible for tax credits that could add up to $12,000 or more. By combining federal and state benefits, taxpayers with qualifying dependents or low-to-moderate income may significantly lower their tax bills or even receive extra cash back. Here’s a closer look at some of the key credits that could help you maximize your refund this year.
1. Earned Income Tax Credit (EITC)
The Earned Income Tax Credit is designed to help working individuals and families with low to moderate incomes. The amount you can claim depends on your income, filing status, and the number of qualifying children. Here’s what you could get for the 2024 tax year:
- No children: Up to $600
- One child: Up to $3,995
- Two children: Up to $6,604
- Three or more children: Up to $7,830
To qualify, your adjusted gross income (AGI) must be below a certain limit. For example, if you’re married filing jointly with three or more kids, your AGI must be under $66,819. Also, your investment income cannot exceed $11,600.
2. Child Tax Credit (CTC)
If you have dependents under the age of 17, you may be eligible for the Child Tax Credit. This credit offers up to $2,000 per qualifying child. Even if you don’t owe any taxes, up to $1,700 of the credit may be refundable through the Additional Child Tax Credit (ACTC).
To qualify, your child must have a valid Social Security number and meet specific age and dependency criteria.
3. State Tax Credits: Don’t Miss Out on Extra Refunds
In addition to federal credits, some states offer their own programs that can put extra money in your pocket. For example, California offers two major credits:
- California Earned Income Tax Credit (CalEITC): If you earn $30,931 or less, you may qualify for up to $3,529 if you have three or more children.
- Young Child Tax Credit (YCTC): Parents with children under the age of six could receive an additional $1,083.
By combining these with federal programs, eligible California families could potentially receive more than $12,000 in credits.
How to Maximize Your Tax Credits
- File a tax return: Even if you owe no taxes, you need to file to claim these refundable credits.
- Stay updated: Tax laws change frequently, so check the IRS website or speak with a tax professional for the latest details.
- Don’t skip state credits: State programs can provide a major boost to your refund, so be sure to research what’s available where you live.
With the right information, you could be leaving thousands of dollars on the table. Filing on time and knowing which credits you qualify for is the key to a bigger refund or reduced tax liability. Don’t miss this opportunity to claim what’s yours.
