Credits cut tax dollar for dollar, and several of them pay out even when you owe nothing. Here are the ones families and students claim on 2026 returns, how much each is worth, which ones refund, and four households worked through with the 2026 numbers.
Returns for tax year 2026 are filed from late January to April 15, 2027. The 2026 dollar amounts are final: the IRS published them in Revenue Procedure 2025-32 (October 9, 2025) and Notice 2025-67 (November 2025). Each credit below has its own calculator for your numbers.
| Credit (2026) | Maximum | Refundable? | Income limits |
|---|---|---|---|
| Earned income credit | $664 (no child) to $8,231 (3+ children) | Fully | Ends at $19,540-$62,974; $26,820-$70,244 joint |
| Child tax credit | $2,200 per child under 17 | Up to $1,700 per child | Phases out above $200,000; $400,000 joint |
| Credit for other dependents | $500 per dependent | No | Same as the child tax credit |
| American opportunity credit | $2,500 per student | 40% (up to $1,000) | $80,000-$90,000; $160,000-$180,000 joint |
| Lifetime learning credit | $2,000 per return | No | Same as the AOTC |
| Saver’s Credit | $1,000; $2,000 joint | No | Ends at $40,250; $60,375 HoH; $80,500 joint |
| Child and dependent care credit | 50% to 20% of $3,000 or $6,000 | No | Rate falls from $15,000 of AGI |
A refundable credit is paid to you even if it exceeds your tax; a nonrefundable credit can only bring your income tax to zero. Nonrefundable credits share the same tax bill, so a low-income family may not be able to use all of them, while refundable ones (the EITC, the additional child tax credit and 40% of the American opportunity credit) still arrive. Families who adopted can add the adoption credit, up to $17,670 per child for 2026 with $5,120 refundable (see the adoption credit calculator).
Filing as head of household, her 2026 income tax before credits is $585 ($30,000 − $24,150 standard deduction, at 10%). The child tax credit wipes that out and the rest becomes the additional child tax credit, capped at $1,700 per child: $3,400 refunded. The EITC for two children at $30,000 is $6,024 (past the $23,890 phase-out start, so $7,316 less 21.06% of the excess, figured at the table’s band midpoint). Total from the three: about $10,009, most of it as a refund that, under the PATH Act, cannot be issued before February 15, 2027.
Tax before credits: $15,340. The freshman’s $4,000 of tuition earns the full $2,500 American opportunity credit, since $150,000 is below the $160,000 joint phase-out start. The 16-year-old brings the $2,200 child tax credit. The 19-year-old student is a dependent but too old for the child tax credit, so they bring the $500 credit for other dependents. Total: $5,200 off their tax. If the freshman were paid for with a tax-free 529 withdrawal, the family should still pay $4,000 of tuition from other money to keep the full AOTC. Money left in a 529 after school is not stuck there: once the account has been open 15 years, up to $35,000 can move to the student’s Roth IRA, one year’s Roth limit at a time (see the 529 to Roth IRA rollover calculator).
The pre-tax contribution brings AGI to $22,000, in the 50% Saver’s Credit band (up to $24,250 for single filers): a $1,000 credit on paper. But tax before credits is only $590, so $590 is usable. With no qualifying child, the EITC ends at $19,540, so none here. Under the 2027 Saver’s Match rules the same saver would get a federal deposit of $900 into the 401(k), whether or not they owe tax.
Graduate school rules out the American opportunity credit, so the lifetime learning credit applies: 20% of $9,000 = $1,800, within the $2,620 of tax she owes. If she also put $2,000 in a Roth IRA, $40,000 is inside the 10% Saver’s Credit band (up to $40,250), worth $200 more, which fits within the $820 of tax left after the lifetime learning credit.
Child tax credit is $2,200 per child with up to $1,700 refundable, and at least one parent needs a Social Security number. American opportunity credit now requires a Social Security number valid for work for the taxpayer, and for the student if different, starting with 2026 returns (Publication 970). Child and dependent care credit starts at 50% instead of 35%, and dependent care FSAs rose to $7,500 (see the dependent care FSA calculator). EITC amounts rose with inflation (maximum $8,231, investment income limit $12,200). Saver’s Credit for retirement contributions is in its last year.
For tax years beginning in 2027, retirement contributions no longer earn the Saver’s Credit (it continues only for ABLE account contributions). Instead, section 6433 of the tax code, added by SECURE 2.0, pays a federal match of 50% of up to $2,000 per person, deposited into a 401(k), 403(b) or traditional IRA after you file. It phases out between $41,000 and $71,000 of income for joint filers ($20,500 to $35,500 single, $30,750 to $53,250 head of household). Because it is a deposit, not a credit, it reaches savers who owe no tax, the group the old credit missed. Treasury guidance on how savers elect an account was still pending in October 2026.
January: collect W-2s, Form 1098-T from each college, and year-end statements for IRA, 401(k) and ABLE contributions. Before you file: confirm each child’s SSN, age on December 31 and months lived with you; add up investment income if you claim the EITC. By April 15, 2027: IRA contributions made by the filing deadline still count for 2026 and can raise the Saver’s Credit or lower AGI into a better band. After filing: refunds with the EITC or additional child tax credit are held until at least February 15.
IRS, Revenue Procedure 2025-32 (October 9, 2025). IRS, Notice 2025-67 (November 2025). IRS, Publication 596 (2025) and Publication 970 (2025, released January 27, 2026). IRS, Saver’s Credit page (updated August 9, 2026). U.S. Code, 26 U.S.C. 24, 25A, 25B, 32, 6402(m) and 6433 (accessed October 2026).
The earned income credit, the additional child tax credit (up to $1,700 per child) and 40% of the American opportunity credit (up to $1,000). The lifetime learning credit, the Saver’s Credit and the care credit are not.
Yes. They are separate credits and many families get both.
Not for the same student, but you can claim the AOTC for one student and the lifetime learning credit for another.
The IRS cannot issue a refund that includes the EITC or the additional child tax credit before February 15.
For retirement contributions, after tax year 2026. From 2027 the Saver’s Match deposits up to $1,000 per person into a retirement account instead; the credit continues for ABLE contributions.
Yes, if made by the April 15, 2027 filing deadline and designated for 2026.