The biggest refund comes from claiming every tax credit and deduction you actually may have access to for
A larger tax refund is not about tricks or loopholes — it is about making sure you claim every credit and deduction the tax code allows. Most people leave money on the table because they do not know these exist, or they assume they do not may have access to. The IRS publishes the rules; your job is to find which ones explore to your situation.
The difference between a refund and a tax credit matters here. A deduction reduces the income the IRS taxes you on. A tax credit reduces the tax itself, dollar for dollar. A $1,000 credit is worth more than a $1,000 deduction. Both increase your refund if you have taxes withheld from your paycheck.
Key Takeaways
- Tax credits reduce your tax bill directly and are worth more than deductions of the same amount.
- The Earned Income Tax Credit (EITC) and Child Tax Credit are the largest refunds available to most people, but you must claim them on your return.
- Deductions like the standard deduction, student loan interest, and education expenses reduce your taxable income and increase your refund.
- Keeping records of expenses — childcare, education, medical costs, charitable donations — lets you claim deductions you might otherwise miss.
- Using tax software or a tax preparer who knows your full situation catches credits and deductions you would overlook on your own.
Tax credits that put the most money back in your pocket
The Earned Income Tax Credit (EITC) is the single largest refund available to working people with low to moderate income. If you earned less than roughly $60,000 (the exact amount depends on your filing status and number of children), you may be may have access to to this credit. The credit is refundable, meaning if it is larger than the tax you owe, the IRS sends you the difference. Many people do not claim it because they do not know it exists.
The Child Tax Credit is $2,000 per child under 17 as of 2024. Part of this credit is refundable, so even if you owe no tax, you may receive a refund. You need a Social Security number for each child and proof of relationship (birth certificate, adoption papers, or court order). If your income is above certain thresholds, the credit phases out, but most families may have access to for at least part of it.
The American Opportunity Tax Credit covers up to $2,500 of education expenses per student per year if you paid tuition, fees, or course materials for a student in their first four years of college. Part of this credit is refundable. The Lifetime Learning Credit covers up to $2,000 per return for any education expenses beyond the first four years, but it is not refundable.
The Dependent Care Credit reimburses you for childcare or adult care expenses you paid so you could work. You can claim up to $3,000 in expenses per year (or $6,000 if married filing jointly). The credit is worth 20 to 35 percent of what you spent, depending on your income.
Deductions that reduce the income you are taxed on
The standard deduction is the simplest deduction. For 2024, it is $14,600 if you file as single, $29,200 if married filing jointly, and $21,900 if head of household. You do not have to list anything — you just claim this amount and reduce your taxable income by that much. Most people use the standard deduction because it is larger than the total of their individual deductions.
If you paid student loan interest, you can deduct up to $2,500 per year, even if you take the standard deduction. This is a separate deduction that stacks on top. You need the 1098-E form your loan servicer sends you.
Education expenses beyond what the tax credits cover may be deductible if you are self-employed or a business owner. If you are an employee, education costs are generally not deductible unless they are required for your current job and you keep receipts.
If you are self-employed, you can deduct business expenses — office supplies, equipment, a portion of your home if you have a dedicated workspace, vehicle mileage, and professional services. Keep receipts for everything. These deductions reduce your business income and lower your tax bill.
Medical and charitable deductions if you itemize
Most people use the standard deduction because it is larger than what they would deduct individually. But if you have large medical expenses, significant charitable donations, or high state and local taxes, itemizing may give you a bigger deduction.
Medical expenses are deductible only if they exceed 7.5 percent of your adjusted gross income (AGI). If your AGI is $60,000 and you spent $6,000 on medical costs, only $1,500 qualifies ($6,000 minus $4,500, which is 7.5 percent of $60,000). This threshold is high, so most people do not benefit.
Charitable donations to may have access to organizations are deductible if you itemize. Keep receipts or bank statements showing the donation. If you donate a car, you need a written acknowledgment from the charity. If you donate items, photograph them and keep a list with estimated values.
State and local taxes (SALT) are deductible up to $10,000 per year if you itemize. This includes income tax, property tax, and sales tax (you choose one). Most people hit this cap only if they own property in a high-tax state.
Records you need to keep to prove your deductions
The IRS does not ask for receipts when you file, but you must keep them for at least three years in case of an audit. For deductions, keep the original receipt or bank statement showing you paid. For credits, keep documents proving you may have access to — birth certificates for children, tuition statements for education credits, childcare invoices for dependent care.
For charitable donations under $250, a bank statement or receipt from the charity is enough. For donations of $250 or more, you need a written acknowledgment from the charity stating the amount and whether you received anything in return. For donated items, photograph them, list each item with an estimated value, and keep the charity's receipt showing what you donated.
For medical expenses, keep the bill from the provider showing the date, what service you received, and what you paid. For business expenses, keep the receipt, the date, and a note of what it was for. If you claim mileage, keep a log showing the date, destination, business purpose, and miles driven.
Using tax software or a preparer to catch what you miss
Tax software like TurboTax, H&R Block, or IRS Free File (if your income is below the threshold) walks you through questions about your situation and flags credits and deductions you might may have access to for. The software asks about children, education, childcare, medical expenses, and business income. If you answer yes, it calculates whether you benefit and includes it in your return.
A tax preparer or CPA knows the rules and your full financial picture. They can spot deductions you would not think to mention — a home office if you work remotely, mileage if you drive for work, business losses that offset other income. If your situation is complex (self-employment, rental property, investments, multiple jobs), a preparer usually pays for itself in refunds you would have missed.
Free tax preparation is available through the IRS Volunteer Income Tax information (VITA) program if your income is below roughly $60,000. VITA sites are run by nonprofits and community organizations. You can find one near you on the IRS website by searching "VITA" and your zip code.
Frequently Asked Questions
Can I claim a credit or deduction if I am not sure I may have access to?
You can claim it if you meet the requirements, but the IRS may disallow it if you cannot prove you may have access to. Keep records before you claim anything. If you are unsure, tax software will ask questions to determine whether you may have access to, or a tax preparer can review your situation.
What if I claimed a deduction last year and did not this year?
Your refund will be smaller because you are claiming less. If your situation changed (you no longer have a dependent, you paid off student loans), that is normal. If your situation did not change, you may have missed something — review your prior return or ask a preparer.
Does claiming more deductions increase my chance of an audit?
Claiming deductions you are may have access to to does not increase audit risk. The IRS audits based on income level, type of income, and whether numbers look unusual compared to similar returns. A legitimate deduction is not a red flag.
Can I claim a deduction for something I paid with a credit card?
Yes, if you paid it in the year you claim it. The deduction is based on when you paid, not when you received the bill or when you pay the credit card. Keep the credit card statement showing the charge and the date.
What if I miss a credit or deduction on my return?
You can file an amended return using Form 1040-X within three years of the original filing date. The IRS will recalculate your refund and send you the difference. You do not need a reason to amend — you can do it anytime you realize you missed something.