Don’t Leave Money on the Table: The 6 Biggest Tax Credits

Want the simplest way to avoid overpaying taxes? Know which credits you qualify for. The catch is that most credits have income limits, phaseouts and strict rules that can make or break your refund. Here’s a clear guide from Santana & Associates to five high-impact credits (EITC, CTC, ACTC, ODC and AOTC), plus the new Trump Accounts for kids, with the thresholds and maximum benefits where they apply.

1) Trump Accounts (new savings account for kids)

A Trump Account is a new, child-owned account that a parent or guardian can set up to help a child build savings over time. It is a savings tool, not a tax credit, but it is worth knowing about if you have young children.

Important timing note: no contributions can be made before July 4, 2026.

Key limits and rules

• $1,000 pilot contribution: the federal government may make a one-time $1,000 deposit for an eligible child born January 1, 2025 through December 31, 2028, who is a U.S. citizen and has a valid Social Security number (and an election is made).
• Annual contribution limit (total from everyone): up to $5,000 per year combined from relatives and friends (expected to be indexed for inflation after 2027).
• Employer contributions: an employer may contribute up to $2,500 per year, and that amount counts toward the $5,000 yearly limit.

How to set it up

1. Confirm the child has a valid Social Security number and meets the eligibility requirements for the year you’re establishing the account.
2. Choose a participating financial institution (bank or brokerage) that will serve as the account custodian or trustee once Trump Accounts become available.
3. Open the account in the child’s name (child-owned), with the parent or guardian acting as the responsible party.
4. Complete the required “election” to establish the account. This election is also what ties into eligibility for the $1,000 pilot contribution, if applicable.
5. Set up contributions to begin on or after July 4, 2026, and track yearly deposits so you don’t exceed the annual limit (including employer contributions).
6. Keep records of contributions (who contributed and how much) so totals can be documented each year.

2) EITC (Earned Income Tax Credit)

The EITC is for people who worked and earned income, especially low- to moderate-income households. It can reduce your tax bill and may increase your refund. The maximum EITC for 2025 ranges from $649 (no children) up to $8,046 (3 or more children).

Qualifying children	AGI limit: Single / Head of Household	AGI limit: Married Filing Jointly
0	$19,104	$26,214
1	$50,434	$57,554
2	$57,310	$64,430
3 or more	$61,555	$68,675

Investment income must be $11,950 or less.

3) CTC (Child Tax Credit)

The Child Tax Credit helps families with qualifying children age 16 and under at the end of the year.

• Up to $2,200 per qualifying child for 2025
• Full credit up to $200,000 of income for most filers, or $400,000 for Married Filing Jointly. Above those levels, the credit shrinks.
• The taxpayer (or at least one spouse if filing jointly) and each qualifying child need a Social Security number valid for work.

4) ACTC (Additional Child Tax Credit)

The ACTC is the refundable part of the Child Tax Credit. “Refundable” means it can still help you even if your tax bill is already $0.

• Up to $1,700 refundable per qualifying child for 2025, depending on your income
• You generally need at least $2,500 of earned income to qualify

5) ODC (Credit for Other Dependents)

The ODC is for dependents who don’t qualify for the CTC, such as:

• An older child you still claim as a dependent
• A dependent parent or other qualifying relative

It is worth up to $500 per dependent and starts to decrease when AGI exceeds $200,000 (or $400,000 Married Filing Jointly).

6) AOTC (American Opportunity Tax Credit)

The AOTC is a college credit for the first 4 years of higher education. It can be a major help for families paying tuition, required fees and course materials.

• Maximum credit: up to $2,500 per eligible student
• How it’s calculated: 100% of the first $2,000 of eligible expenses, plus 25% of the next $2,000
• Refundable piece: up to 40% of the credit (up to $1,000) may be refundable

Filing status	Phaseout range (MAGI)	No credit at
Single / Head of Household	$80,000–$90,000	$90,000+
Married Filing Jointly	$160,000–$180,000	$180,000+

Not sure which credits you qualify for?

Credits interact with each other, and a small change in income or filing status can move you above or below a limit. Bring your documents (see our What to Bring checklist) and we’ll review every credit you may be eligible for.