Maximize Your Tax Refund 2026

Up to $2,000 per qualifying child under 17

Details:

• $2,000 per child under 17 at end of year
• Up to $1,700 is refundable (Additional Child Tax Credit)
• Child must be U.S. citizen/national/resident alien with SSN

Phase-out begins at:

• $200,000 AGI (single)
• $400,000 AGI (married filing jointly)
• Reduces by $50 for each $1,000 over threshold

Example:

• Family with 3 kids under 17
• Total credit: 3 × $2,000 = $6,000
• If tax owed was only $4,500, get $1,500 refund (up to $1,700 refundable portion per child)

For first 4 years of college

Credit amount:

• 100% of first $2,000 in expenses
• 25% of next $2,000 in expenses
• Maximum: $2,500 per student
• 40% refundable (up to $1,000)

Qualified expenses:

• Tuition and fees
• Required course materials (books, supplies, equipment)
• Does NOT include room & board

Requirements:

• Pursuing degree or credential
• Enrolled at least half-time
• No felony drug convictions
• First 4 years of post-secondary only

Phase-out:

• $80,000-$90,000 (single)
• $160,000-$180,000 (married)

Helps pay for health insurance from marketplace

How it works:

• Limits premium cost to % of income
• Can receive advance payments to insurer
• Reconcile on tax return (may get refund or owe back)
• Fully refundable

Eligibility (2026):

• Income between 100%-400% of federal poverty level
• 2026: $15,060-$60,240 (single)
• 2026: $31,200-$124,800 (family of 4)
• No cap for those under 400% FPL (temporary)
• Cannot be offered affordable employer coverage

Potential credit:

• Can be worth thousands per year
• Family of 4 at $60,000 income could save $10,000+ annually

5. Lifetime Learning Credit - Up to $2,000

• 20% of first $10,000 in tuition/fees
• For any year of college or job skills courses
• Per tax return (not per student)
• Phase-out: $80K-$90K single / $160K-$180K married

6. Child and Dependent Care Credit - Up to $1,050

• Up to 35% of $3,000 expenses (1 child) or $6,000 (2+)
• For care while you work
• Children under 13 or disabled dependents
• Phase-out: 35% down to 20% as income rises

7. Saver's Credit - Up to $1,000

• 10%, 20%, or 50% of retirement contributions (max $2,000)
• For contributions to IRA, 401(k), 403(b), etc.
• Income limits: $38,250 (single) / $76,500 (married)
• Cannot be claimed by full-time students or dependents

8. Adoption Credit - Up to $16,810

• For qualified adoption expenses
• Per child adopted
• Phase-out: $252,150-$292,150 (2026)

9. Residential Clean Energy Credit - 30%

• 30% of cost for solar, geothermal, wind, fuel cells
• No annual dollar limit
• Can carryforward unused credit
• Applies to primary AND second homes

Example:

• Solar panel system cost: $30,000
• Credit: $30,000 × 30% = $9,000

10. Energy Efficient Home Improvement Credit - Up to $3,200/year

• 30% of cost with annual limits:
• $1,200: Windows, doors, insulation, audit
• $2,000: Heat pumps, heat pump water heaters, biomass stoves
• Must meet energy efficiency requirements

Example improvements:

• $8,000 heat pump: $2,000 credit
• $4,000 windows: $1,200 credit
• Total possible annual credit: $3,200

11. New Clean Vehicle Credit - Up to $7,500

• $7,500 for new qualifying electric/plug-in hybrid vehicles
• Must meet North American assembly requirement
• Battery component and mineral requirements
• MSRP limits: $80K (vans/SUVs/trucks), $55K (other)
• Income limits: $300K (married) / $225K (HOH) / $150K (single)

12. Previously Owned Clean Vehicle Credit - Up to $4,000

• Up to $4,000 or 30% of price (whichever less)
• For used EVs at least 2 years old
• Price under $25,000
• Income limits: $150K (married) / $112.5K (HOH) / $75K (single)
• Can only claim once every 3 years

💡 New for 2024+: Can receive credit as point-of-sale discount at dealer!

13. Credit for the Elderly or Disabled - $3,750-$7,500

• Age 65+ or permanently disabled
• Low income required
• Rarely claimed but valuable if eligible

14. Foreign Tax Credit - Varies

• Offset U.S. tax on foreign income
• For taxes paid to foreign countries
• Alternative to foreign tax deduction

15. Work Opportunity Tax Credit (Employers) - Up to $9,600

• For hiring individuals from targeted groups
• Veterans, ex-felons, long-term unemployed, etc.
• Business credit

Combined limit of $10,000 for:

• State and local income taxes OR sales taxes
• Property taxes on real estate
• Personal property taxes on vehicles

Strategy:

• Choose between income tax OR sales tax (not both)
• Sales tax better if you made large purchases or live in no-income-tax state
• Property tax on primary + second home included

Interest on mortgage debt up to $750,000

What qualifies:

• Primary residence mortgage
• Second home mortgage
• Acquisition debt only (refinances okay if not cash-out)
• Grandfathered $1M limit for loans before 12/15/2017

Example:

• $500,000 mortgage at 6.5%
• Annual interest: ~$32,000
• Tax savings (24% bracket): $7,680

Home equity loan interest: Only deductible if used to buy, build, or improve home (not for other purposes)

Donations to qualified charities (up to 60% of AGI for cash)

Cash donations:

• Up to 60% of AGI
• Need receipt for $250+
• Bank record for all donations

Appreciated stock/property:

• Up to 30% of AGI
• Deduct fair market value
• Avoid capital gains tax
• Need appraisal if over $5,000

Bunching strategy:

• Combine 2-3 years of donations into one year
• Exceed standard deduction threshold
• Use donor-advised fund for timing flexibility

Only for federally declared disasters (2026)

• Must be in federally declared disaster area
• Reduced by insurance reimbursement
• Reduced by $100 per event
• Only amount exceeding 10% of AGI deductible