Don’t Miss These Valuable Tax Credits!
Many taxpayers overpay on their taxes simply because they don’t know about the tax credits they qualify for. Unlike deductions, tax credits reduce your tax bill dollar-for-dollar, meaning more money stays in your pocket.
If you’re a business owner, freelancer, or individual taxpayer, you might be missing out on thousands in tax savings.
This guide will highlight the most overlooked tax credits that could significantly lower your tax liability in 2025.
1. Earned Income Tax Credit (EITC) – Worth Up to $7,430
🚀 Why It’s Overlooked: Many people think they don’t qualify, but even moderate-income earners may be eligible.
📌 Who Qualifies?
✔ Earned income (from a job, freelance, or self-employment).
✔ Adjusted Gross Income (AGI) below:
- $59,478 (married with three+ kids).
- $17,640 (single, no kids).
✔ Must have valid Social Security numbers for all family members.
💡 Tip: Many self-employed individuals wrongly assume they can’t claim EITC—but as long as you have earned income, you may qualify.
2. Saver’s Credit – Free Money for Retirement (Up to $2,000)
🚀 Why It’s Overlooked: Many taxpayers don’t realize they can get a tax credit just for contributing to retirement.
📌 Who Qualifies?
✔ Contribute to a 401(k), IRA, or Roth IRA.
✔ Adjusted Gross Income (AGI) below:
- $36,500 (single)
- $73,000 (married)
✔ Credit amount: 10-50% of contributions (up to $2,000).
💡 Tip: This credit reduces your tax bill AND helps you build wealth—a win-win!
3. Child and Dependent Care Credit – Get Up to $3,000 Per Child
🚀 Why It’s Overlooked: Many people think only daycare expenses qualify, but after-school programs, babysitters, and summer camps also count.
📌 Who Qualifies?
✔ Parents who pay for childcare while working or looking for work.
✔ Can claim up to $3,000 per child (max $6,000 for two+ kids).
✔ Child must be under 13 years old (or disabled).
💡 Tip: Even if your employer offers a Dependent Care FSA, you can still claim this credit for additional expenses.
4. American Opportunity Credit (AOC) – $2,500 for College Costs
🚀 Why It’s Overlooked: Some students think they only qualify for deductions, but this credit gives cash back—even if you owe no taxes.
📌 Who Qualifies?
✔ Must be enrolled at least half-time in college.
✔ Credit covers tuition, books, and supplies.
✔ 40% is refundable, meaning you can get up to $1,000 as a refund.
💡 Tip: You can only claim this credit for four years per student, so use it before switching to the Lifetime Learning Credit.
5. Lifetime Learning Credit (LLC) – Up to $2,000 for Education
🚀 Why It’s Overlooked: Unlike the American Opportunity Credit, this one has no limit on the number of years you can claim it.
📌 Who Qualifies?
✔ Must be enrolled in college or taking job-related courses.
✔ Credit covers tuition, books, and fees.
✔ Income must be below:
- $90,000 (single)
- $180,000 (married)
💡 Tip: This credit is great for grad students, working professionals, or lifelong learners.
6. Work Opportunity Tax Credit (WOTC) – Up to $9,600 for Hiring Employees
🚀 Why It’s Overlooked: Many small businesses don’t realize they can get a tax credit for hiring certain employees.
📌 Who Qualifies?
✔ Employers who hire individuals from targeted groups, including:
- Veterans
- Ex-felons
- SNAP (food stamp) recipients
✔ Credit ranges from $2,400 to $9,600 per employee.
💡 Tip: Business owners can claim multiple credits if hiring from different target groups.
7. Energy-Efficient Home Improvement Credit – Up to $3,200
🚀 Why It’s Overlooked: Many homeowners don’t realize upgrading insulation, HVAC systems, or windows can lead to big tax savings.
📌 Who Qualifies?
✔ Installed energy-efficient doors, windows, or insulation.
✔ Upgraded to solar panels, heat pumps, or energy-efficient HVAC.
✔ Credit worth up to 30% of costs (max $3,200 per year).
💡 Tip: This credit is available every year through 2032—no rush!
8. Electric Vehicle (EV) Tax Credit – Up to $7,500
🚀 Why It’s Overlooked: Some people think only expensive EVs qualify, but many affordable models now meet IRS requirements.
📌 Who Qualifies?
✔ Purchased a new electric vehicle (EV).
✔ Car’s price must be below IRS limits (varies by model).
✔ Adjusted Gross Income (AGI) below:
- $150,000 (single)
- $300,000 (married)
💡 Tip: Used EVs may qualify for a $4,000 credit under the new IRS rules.
9. Health Insurance Premium Tax Credit
🚀 Why It’s Overlooked: Many people don’t realize you can get money back if you overpaid for Marketplace health insurance.
📌 Who Qualifies?
✔ Purchased health insurance through Healthcare.gov or a state marketplace.
✔ Income between 100-400% of the federal poverty level.
✔ Can claim a credit or refund based on actual income.
💡 Tip: If you overpaid for health insurance subsidies, you may qualify for a refund at tax time.
10. Research & Development (R&D) Tax Credit – Big Savings for Business Owners
🚀 Why It’s Overlooked: Many small business owners assume this credit is only for tech companies, but it applies to any business innovating new products or processes.
📌 Who Qualifies?
✔ Businesses developing new software, products, or manufacturing techniques.
✔ Any industry—not just tech—can claim it.
✔ Startups can use the credit against payroll taxes (even without profits).
💡 Tip: If your business spends money on innovation, this credit could be worth tens of thousands of dollars.
Conclusion: Claim Your Tax Credits & Keep More Money in 2025
📌 Don’t leave money on the table!
✔ Check if you qualify for valuable tax credits.
✔ Keep detailed records & receipts to support your claims.
✔ Use tax software or a CPA to maximize your credits.
📌 Need expert tax help? Contact First Union Tax to ensure you’re getting every tax credit you deserve!
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