IRS reminds parents of these tax credits worth thousands

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TurboTax expert offers suggestions to maximize one's 2026 tax refund

TurboTax expert offers suggestions to maximize one's 2026 tax refund

(NEXSTAR) – Paying taxes is hard enough, so leaving additional money on the table should be avoided at all costs.

Last week, the Internal Revenue Service advised parents and families not to overlook available tax credits that could significantly lower their tax burdens – or even boost their refunds.

The first step, according to the IRS, is to make sure that the child and the taxpayer both have a valid Social Security number. Tax experts recommend closely checking any returns to make sure the numbers are entered correctly – a mistake could cost money.

The Child Tax Credit is a nonrefundable break for families with qualifying children.

As a nonrefundable credit, it can lower one’s tax burden until the amount is $0, but taxpayers won’t receive any remaining money after that.

For a child to qualify, according to the IRS, they must:

Be under 17 at the end of the tax year.

Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew).

Not provide more than half of his or her own support for the tax year.

Have lived with you for more than half the tax year.

Be claimed as a dependent on your return.

Not file a joint return for the year (or filed the joint return only to claim a refund of taxes withheld or estimated taxes).

Be a U.S. citizen, U.S. National or a U.S. resident alien.

The credit is worth up to $2,200, and eligible parents can receive up to $1,700 of the money as a refund under Additional Child Tax Credit rules.

Earned Income Tax Credit

The credit is a substantial boost for working people who have low to moderate incomes – it’s also refundable, so taxpayers will receive the money even if they don’t owe anything.

“The IRS reports every year that one out of five people missed the earned income tax credit and also the retirement savers’ credit,” Lisa Greene-Lewis, CPA and tax expert at Intuit TurboTax, told Nexstar. “So the earned income tax credit, that is a credit for a family with three kids that can be up to $8,046. So that is a lot of money.”

To qualify, taxpayers must fall under income and investment limits, be a U.S. citizen or a resident alien all year and have a valid Social Security number, among other guidelines.

Thanks to changes under the One, Big, Beautiful Bill, the tax credit for parents who finalized an adoption in 2025 or started the process before 2025 is now partially refundable.

Out of a maximum of $17,280 per eligible child in 2025, up to $5,000 is refundable. The credit is meant to offset out-of-pocket adoption expenses.

According to IRS rules, a qualifying child must be:

Physically or mentally incapable of self-care

Expenses that qualify for the credit consist of:

Reasonable and necessary adoption fees

Court costs and legal fees

Adoption-related travel expenses like meals and lodging

Other expenses directly related to the legal adoption of an eligible child

Child and Dependent Care Credit

Parents who paid someone to take care of their child while they worked or looked for work may be able to claim this nonrefundable credit.

How much you’ll be able to lower your federal tax burden depends on income and the percentage of expenses paid for childcare.

General IRS eligibility rules for parents state:

You (and your spouse if filing a joint return) have earned income.

You paid qualified expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work.

You identify the eligible care provider on your return.

Your filing status is single, head of household, qualifying surviving spouse, or married filing jointly unless an exception applies to you.

Looking to offset the cost of higher education? You may want to look into the American Opportunity Tax Credit (AOTC), which is partially refundable, and the Lifetime Learning Credit (LLC), which is nonrefundable.

The AOTC and LLC are worth up to $2,500 and $2,000 per student, respectively.

Eligibility rules are extensive, and the IRS recommends using the Interactive Tax Assistant to see if you qualify.

Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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