When it comes to reducing our taxes, there are many different ways to do it. But one of the most straightforward and best tax reduction levers is tax credits. So in this video, I review the 10 best tax credits you want to be aware of.

Disclaimer: Please don’t take this as tax advice. This video has been prepared for informational purposes only. Tax rules are constantly changing, so for the latest information, please refer to the IRS Website (

Timecodes:

0:00 – Intro
0:27 – Tax Credit 101
4:07 – Premium Tax Credit (PTC)
5:35 – American Opportunity Tax Credit (AOTC)
6:36 – Lifetime Learning Credit (LLC)
7:23 – Child Tax Credit (CTC)
8:03 – Child & Dependent Care Credit (CDCC)
9:05 – Adoption Credit
9:43 – Saver’s Credit
10:53 – The Earned Income Tax Credit (EITC)
11:39 – Energy Efficient Home Improvement Credit
12:30 – Residential Clean Energy Property Credit

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Premium Tax Credit –
AOTC –
LLC –
CTC –
Child and Dependent Care Credit –
Adoption Credit –
Saver’s Credit –
EITC –
Energy Credits –

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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed….(read more)

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As tax season approaches, it’s important to know which tax credits are available to you. Tax credits are valuable because they reduce your tax liability dollar-for-dollar. Below are the 10 best tax credits that are approved by the IRS.

1. Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is a refundable tax credit for low to moderate-income working individuals and families. The credit ranges from $529 to $6,660, depending on your income and number of qualifying children.

2. Child Tax Credit

The Child Tax Credit provides up to $2,000 per qualifying child under the age of 17. The credit is partially refundable, meaning you can receive up to $1,400 per child as a refund.

3. American Opportunity Tax Credit (AOTC)

The American Opportunity Tax Credit (AOTC) provides up to $2,500 per eligible student for tuition, fees, and course materials for the first four years of higher education. The credit is partially refundable, meaning up to $1,000 can be received as a refund.

4. Lifetime Learning Credit (LLC)

The Lifetime Learning Credit (LLC) provides a credit of up to $2,000 per tax return for undergraduate and graduate tuition, fees, and course materials. The credit is non-refundable.

5. Saver’s Credit

The Saver’s Credit provides a credit of up to $1,000 ($2,000 for married filing jointly) for contributions to a retirement account such as an IRA, 401(k) or other qualified retirement plan. The credit is non-refundable.

6. Retirement Savings Contributions Credit (RSCC)

The Retirement Savings Contributions Credit (RSCC) is also known as the “Saver’s Credit”. It provides a credit of up to $1,000 ($2,000 for married filing jointly) for contributions to a qualified retirement plan. The credit is non-refundable.

7. Adoption Tax Credit

The Adoption Tax Credit provides a credit of up to $14,300 per child for expenses related to the adoption process. The credit is non-refundable.

8. Disabled Access Credit

The Disabled Access Credit provides small businesses with a credit of up to $5,000 per year for expenses related to accommodating persons with disabilities, including providing access to buildings, vehicles, and communication aids.

9. Research and Development (R&D) Tax Credit

The Research and Development (R&D) Tax Credit is a credit for businesses that engage in qualified research activities, including developing new or improved products, processes, or software. The credit is based on a percentage of qualified research expenses and can be used to offset payroll taxes.

10. Alternative Fuel Vehicle Refueling Property Credit

The Alternative Fuel Vehicle Refueling Property Credit provides a credit of up to $1,000 for the purchase and installation of qualified alternative fuel vehicle refueling property. This includes equipment that recharges an electric vehicle or refuels a car with alternative fuels such as compressed natural gas or hydrogen.

In conclusion, tax credits can provide significant savings on your tax bill, so it’s important to take advantage of them. These ten tax credits approved by the IRS can help you reduce your tax liability and even potentially receive a refund. Be sure to consult with a tax professional to see which credits are best suited for your specific situation.