9 tax credits to consider when filing your taxes for 2023

Taking advantage of the right tax credits could make a significant difference in your tax refund. 

Getty Images/iStockphoto

Tax season is upon us again and, with it, comes tax refunds. Savvy filers can use tax credits to expand their return. After all, when you take advantage of tax credits, you could realize a meaningful increase in your tax refund or a significant decrease in the amount of money you have to pay when you file your taxes for 2023

On the other hand, the IRS updates available tax credits every year. So, you may find it difficult to determine which tax credits apply to you and how much they may reduce your overall tax burden. 

Simplify the filing process with TaxSlayer now. 

9 tax credits to consider when filing your taxes for 2023

Tax credits can give your refund a boost or make a meaningful difference in your tax bill. Here are some of the most popular credits and how much money they could be worth to you: 

Tax credits for parents

  • Adoption tax credit: If you adopted a child, or children, in 2023, you may be eligible for a tax credit of up to $15,950 per child to help cover qualified adoption expenses. These expenses include court costs, reasonable adoption fees, attorney fees, traveling expenses and other costs directly related to the adoption of the child. 
  • Child tax credit: If you have children, you may qualify for a tax credit of up to $2,000 per child. In order to qualify for the credit, your children must have been younger than 17 years old on the last day of 2023. 
  • Child and dependent care tax credit: If you incurred costs associated with child care or the care of another dependent – like a disabled spouse – you may qualify for up to a $3,000 tax credit for one dependent or $6,000 for two or more dependents that you cared for in 2023. 

Find out what tax credits you qualify for with TurboTax. 

Energy efficient upgrade tax credits

  • Electric vehicle tax credit: Did you buy an electric vehicle in 2023? If so, you may qualify for a tax credit of up to $7,500. This credit is only available if you purchased the vehicle for your own use (not for resale) and if you primarily use the vehicle in the United States. Other limitations – like income limits – may apply. 
  • Residential energy tax credit: Upgrades to your home may lead to tax credits as well. That’s especially true if your upgrades improved your home’s energy efficiency. For example, you may qualify for a tax credit equal to 30% of the total cost of your new solar panel installation. You may also be able to take advantage of tax credits if you upgraded your exterior windows, doors and skylights in 2023. 

Education tax credits

  • American opportunity credit: Are you seeking a higher education or are the parent college-aged students? If so, you may qualify for a credit of up to $2,500 per qualifying student. The credit may cover 100% of the first $2,000 you spend on qualified education expenses per student and 25% of the following $2,000 you spend. 
  • Lifetime learning credit: This is another credit for those seeking a higher education or those who are paying for another student’s education. The credit may cover up to $2,000 in qualified education expenses. 

Other general tax credits

  • Earned income credit: The earned income tax credit could be worth between $600 and $7,430 for the 2023 tax year, depending on your filing status and the number of dependents you have. 
  • Retirement savings contributions credit (saver’s credit): The credit could be worth between 10% and 50% of the contributions you made to a qualifying retirement account – like a 401(k) or IRA – in 2023, depending on your income.  

The bottom line

With tax season upon us, most Americans are looking forward to their refunds. However, taking advantage of the right tax credits could mean the difference between a menial refund and a meaningful one. Consider the credits above as you file your 2023 tax return

Next Post

Stock Market News And Analysis

Wed Apr 3 , 2024
View Prior Stock Market Today Updates X Current Recommended Market Exposure Level STOCK MARKET TODAY With regular updates throughout each trading session, the Stock Market Today column highlights the latest stock market news and alerts you to any changes in market trend. You’ll also get ongoing analysis of the best […]

Latest Post