Americans may be overlooking billions of dollars in federal tax credits. Here's what you can claim to bolster your household budget

At a time when household budgets are stretched thin, Americans can ill-afford to leave money on the table.

The good news is that even a quick review of your eligibility can unlock meaningful savings. But first, it helps to understand where taxpayers leave money behind, and how surprisingly easy it is to qualify. Here are some credits to consider applying for next tax season.

Earned income tax credit, additional child tax credit

Let’s start with the earned income tax credit (EITC) and additional child tax credit (ACTC), which combined are “often considered the largest financial event of a low-income family’s year,” Elaine Maag, a senior fellow of the Urban-Brookings Tax Policy Center at the Urban Institute, told CNBC. (1)

The IRS estimates approximately one in five eligible taxpayers miss out on claiming the EITC. Part of the issue is complexity: eligibility depends on income, filing status and number of qualifying children, and the rules can be intimidating to navigate.

But the potential benefit is substantial. For 2025, the EITC ranges from $649 for filers without children to just over $8,000 for workers with three or more qualifying children. Adjusted gross income (AGI) limits reach as high as $61,555 for single filers and $68,675 for married couples filing jointly. Missing the EITC can mean losing one of the largest refundable credits available to many workers.

The ACTC is a refundable portion of the child tax credit that some families can receive if they owe little or no income tax. It can provide up to $1,700 per qualifying child depending on your income.

Saver's Credit

Another big missed opportunity is the Saver’s Credit, a program designed to reward workers for contributing to retirement accounts. It applies to contributions made to traditional and Roth IRAs, 401(k)s, 403(b)s and similar workplace plans. Yet, many workers either don’t know it exists or assume their income is too high to benefit.

In reality, the income limits are more generous than you might think. For 2025, single filers can qualify with a modified adjusted gross income (MAGI) of up to $39,500, and married couples filing jointly can qualify up to $79,000 if both spouses contribute. The credit can cover as much as 50% of your contribution, capped at $1,000 (of first $2,000 contributed) for single taxpayers and $2,000 (of first $4,000) for couples. A worker who contributes $1,000 to a 401(k) could receive up to $500 back at tax time – essentially getting compensated to save for retirement – but they will receive less the higher their income. This credit is also nonrefundable, so it simply lowers your tax liability.

Parents, caregivers and lifelong learners

Many families overlook the Child and Dependent Care Credit (CDCC) because they assume its rules are too complicated or think their expenses don’t count. But the IRS allows the nonrefundable credit for a wide range of care-related costs. Child care that’s needed so you can work or search for work qualifies, including after-school programs and summer day camps. The credit also applies to the care of a dependent who lives with you and cannot care for themselves.

Depending on income, the CDCC covers between 20% and 35% of up to $3,000 in eligible expenses for one qualifying person, or up to $6,000 for two or more. There is no upper income limit that completely disqualifies you, but the percentage drops to 20% at higher incomes. If you use a Dependent Care FSA to help cover care costs, it may affect the calculation of your CDCC.

Adults returning to school or changing careers are also bypassing valuable benefits. The Lifetime Learning Credit is a versatile, nonrefundable credit worth 20% of up to $10,000 of qualified tuition and required fees per return (up to $2,000), available for a wide range of undergraduate, graduate and professional degree coursework, with income‑based phase‑outs starting at a MAGI of $80,000 for single filers and $160,000 for joint filers.

Energy upgrades

Homeowners may also be overlooking the Energy Efficient Home Improvement Credit, which expires after 2025 and is nonrefundable. It allows a credit equal to 30% of qualifying energy efficiency upgrades and home energy audits. The annual maximum credit is $3,200 — $1,200 for energy efficient property costs and $2,000 for qualified heat pumps, water heaters, biomass stoves or biomass boilers. Purchases must be made from a list of qualified manufacturers to be eligible for the credit.

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CNBC (1)