New to filing tax returns? Credits and deductions to increase your refund

On February 12, 2025By Littum

You spent the year paying your student loans, contributing to your savings and having your employer withheld part of your salary check for taxes. Now it’s time to file a tax return and you wonder if you can get some of it back. You might.

IRS reported last year These taxpayers had left more than $ 1 billion in unclaimed refund on the table. To make sure you get what you owe this year, take some time to investigate deductions and credits before submitting your return. If you are not sure which ones you can qualify for, here are some common deductions and credit new tax returns can take:

Credits

American Opportunity Tax Credit: If no one else claims you as a dependent, you can qualify for this credit of up to $ 2,500 for expenses you paid during your first four years in college.

Earned income tax credit: If you made some money last year, you may be able to claim this credit. If you archive as a single individual without relatives and earn less than $ 18,591, you can qualify for an up to $ 632 credit. If you archive as a single individual with three or more dependents and earned less than $ 59,899, you can qualify for an up to $ 7,830 credit. Information on other maximum credit amounts based on income and number of dependents can be found On the IRS website.

Lifetime Learning Credit: If no one else claims you as a dependent, you can qualify for this credit of up to $ 2,000 for expenses you paid for continuing education and for courses to acquire or improve job skills.

Saver’s Credit: If you are not claimed as a dependent and have contributed to a traditional or Roth IRA or a pension savings fund, you can qualify for this credit up to 50%, 20% or 10% of your contribution, Depending on your income level.

Deduction

Deduction for student loan interest: If you made a payment on your student loans in 2024, you can deduct the interest rate you paid on them or $ 2,500 from your taxable income, whichever is less.

The default deduction: Most people take the standard deduction, IRS explainswhich allows you to deduct a fixed amount from your income based on your filing status:

$ 14,600 for single files or the poison but archiving separately
$ 29,200 for married couples who archive jointly or a qualifying surviving spouse
$ 21,900 for households

Deductible expenses: You may be able to deduct a few other expenses including money you put into an IRA or health savings account and money spent on the company’s use of your car or home. Just because you work from home doesn’t mean you can deduct expenses to your home office. Workers must meet certain criteria for drawing part of their rent or utilities.

Specified Deductions: If you do not take the default deduction and choose to specify your expenses instead, you may also require deductions for items such as donations to charity and game loss, including money, Sports betting.

Still confused? Answer these six questions to help you get started with your tax return.

Well Rachel Barber at [email protected] and follow her on x @rachelbarber_