Tax credits for parents
- 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 2024.
- Earned income credit: The earned income tax credit could be worth between $600 and $7,830 up from $7,430 for the 2024 tax year, depending on your filing status and the number of dependents you have.
- Child and dependent care tax credit: Depending on income, taxpayers can get a credit worth up to 35% of their qualifying childcare expenses. At minimum, it’s 20% of those expenses. For 2024, the maximum eligible expense for this credit is $3,000 for one qualifying person and $6,000 for two or more.
- Adoption tax credit: If you adopted a child, or children, in 2024, you may be eligible for a tax credit of up to $16,810—up from $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.
- Other Dependents Credit
The maximum credit amount is $500 for each dependent who meets certain conditions. This credit can be claimed for:
- Dependents of any age, including those who are age 18 or older.
- Dependents who have Social Security numbers or Individual Taxpayer Identification numbers.
- Dependent parents or other qualifying relatives supported by the taxpayer.
- Dependents living with the taxpayer who aren’t related to the taxpayer.
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.
Energy efficient upgrade tax credits
- Electric vehicle tax credit: Did you buy an electric vehicle in 2024? 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.
- Vehicles will have to meet all the same criteria listed above, plus meet new critical mineral and battery component requirements for credit up to:
- $3,750 if the vehicle meets the critical minerals requirement only
- $3,750 if the vehicle meets the battery components requirement only
- $7,500 if the vehicle meets both
- A vehicle that doesn’t meet either requirement will not be eligible for credit.
- Qualified vehicles
Click the button below to see if a vehicle is eligible for the new clean vehicle credit.
https://fueleconomy.gov/feg/tax2023.shtml
- 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 2024.
Other general tax credits
- 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 2024, depending on your income.
| Filing Status | 50% of your contribution | 20% of your contribution | 10% of your contribution | 0% of your contribution |
|---|---|---|---|---|
| Married filing jointly | AGI not more than $46,000 | $46,001 – $50,000 | $50,001 – $76,500 | More than $76,500 |
| Head of household | AGI not more than $34,500 | $34,501 – $37,500 | $37,501 – $57,375 | More than $57,375 |
| All other filers* | AGI not more than $23,000 | $23,001 – $25,000 | $25,001 – $38,250 | More than $38,250 |
Individual Retirement Account Rules
- IRA Contribution Limits (Roth or Traditional): Unchanged: $7,000 under age 50/$8,000 age 50 and over.
- Income Limits for Roth IRA Contribution, single filers: Modified adjusted gross income under $150,000—full Roth contribution; between $150,000 and $165,000—partial Roth contribution; more than $165,000—no Roth contribution.
- Income Limits for Roth IRA Contribution, married couples filing jointly: Modified adjusted gross income under $236,000—full Roth contribution; between $236,000 and $246,000—partial Roth contribution; more than $246,000—no Roth contribution.
- Income Limits for Deductible IRA Contribution, single filers covered by a retirement plan at work: Modified adjusted gross income under $79,000—fully deductible contribution; between $79,000 and $89,000—partially deductible contribution; more than $89,000—contribution not deductible.
- Income Limits for Deductible IRA Contribution, single filers who are not covered by a retirement plan at work or married couples if neither spouse is covered by a retirement plan at work: None.
- Income Limits for Deductible IRA Contribution, married couples filing jointly, if contributor is covered by a retirement plan at work: Modified adjusted gross income under $126,000—fully deductible contribution; between $126,000 and $146,000—partially deductible contribution; more than $146,000—contribution not deductible.
- Income Limits for Deductible IRA Contributions, married couples filing jointly, if contributor is not covered by a retirement plan at work but spouse is: Modified adjusted gross income under $236,000—fully deductible contribution; between $236,000 and $246,000—partially deductible contribution; more than $246,000—contribution not deductible.
- Income Limits for Nondeductible IRA Contributions: None.
- Income Limits for IRA Conversions: None