10 Tax Credits You May Be Able to Claim in the U.S. in 2024

Navigating the tax landscape can be complex, but understanding available tax credits can significantly impact your tax returns. Here are ten key tax credits you may be able to claim in the U.S. for the year 2024:

  1. Child Tax Credit (CTC): Provides up to $2,000 for each qualifying child under the age of 17. Income limits apply, with a phase-out starting at $200,000 for single filers and $400,000 for joint filers​​​​.
  2. Earned Income Tax Credit (EITC): A refundable credit for low to moderate-income working individuals and families, especially those with children. The amount varies based on income, filing status, and the number of qualifying children​​.
  3. American Opportunity Tax Credit (AOTC): Offers up to $2,500 per student for qualified education expenses for the first four years of higher education, with 40% of it being refundable. Income limits apply​​.
  4. Lifetime Learning Credit (LLC): Provides a nonrefundable credit for qualified tuition and related expenses, up to $2,000 per tax return. It is available for all years of postsecondary education and courses to acquire or improve job skills​​.
  5. Child and Dependent Care Credit: Offers a credit for incurred care costs for a child age 12 or younger, or for other eligible dependents, due to work needs. The credit amount varies based on income and expenses​​.
  6. Saver’s Credit: A credit for eligible contributions to IRAs, 401(k)s, and certain other retirement plans. The credit rate depends on your income and filing status, with AGI limitations​​.
  7. Energy-Efficient Home Improvement Credit: Under the Inflation Reduction Act, this credit covers up to 30% of the cost of certain qualified energy-efficient improvements, with specific dollar limits​​.
  8. Electric Vehicle Credit: Offers up to $7,500 for new electric vehicle purchases, subject to income limits and final assembly requirements. A used electric vehicle credit is also available up to $4,000 or 30% of the sales price​​.
  9. Student Loan Interest Deduction: Allows you to deduct student loan interest up to $2,500 on your taxes, subject to income limits​​.
  10. Health Savings Account (HSA) and Flexible Spending Account (FSA) Contributions: Contributions to HSAs and FSAs are tax-deductible, with specific contribution limits applicable​​.

It’s important to consult with a tax professional or use reliable tax software to understand how these credits apply to your specific situation and to ensure you’re maximizing your tax benefits.