Tax Credits You Might Be Missing in 2026
Published on January 2026
Leaving thousands of dollars on the table? Many taxpayers miss valuable tax credits every year simply because they don't know these credits exist or don't realize they qualify.
The problem is that tax credits aren't automatically applied—you must know about them and actively claim them on your return. Without this knowledge, you could be overpaying your taxes by thousands of dollars annually while eligible credits go unclaimed.
This guide reveals the most valuable tax credits available in 2026 that you might be missing. You'll learn which credits you qualify for, how much they're worth, and exactly how to claim them to maximize your refund or reduce what you owe.
Refundable vs. Non-Refundable Credits
Understanding the difference between refundable and non-refundable credits is crucial. Refundable credits can reduce your tax liability below zero, meaning you'll receive the excess as a tax refund. Non-refundable credits can only reduce your tax bill to zero—any excess credit is lost.
For example, if you owe $1,000 in taxes and have a $1,500 refundable credit, you'll receive a $500 refund. With a non-refundable credit, you'd owe nothing, but the extra $500 would not be refunded to you.
Child Tax Credit
The Child Tax Credit provides up to $2,000 per qualifying child under age 17. Up to $1,700 of this credit is refundable through the Additional Child Tax Credit. To qualify, the child must be your dependent, a U.S. citizen or resident, and have a valid Social Security number.
The credit begins to phase out for single filers with modified adjusted gross income above $200,000 and married couples filing jointly above $400,000. Even if you don't owe taxes, you may still receive a refund through the refundable portion.
Earned Income Tax Credit (EITC)
The EITC is one of the most valuable refundable credits for low to moderate-income workers. For 2026, the maximum credit is $7,830 for taxpayers with three or more qualifying children. Even workers without children may qualify for a smaller credit.
Income limits vary based on filing status and number of qualifying children. Many eligible taxpayers don't claim this credit, leaving thousands of dollars on the table. If you earned less than $63,398 (with children) or $17,640 (without children) in 2026, check your eligibility.
Education Credits
The American Opportunity Tax Credit (AOTC) provides up to $2,500 per eligible student for the first four years of college. Forty percent of this credit ($1,000) is refundable. Eligible expenses include tuition, fees, and course materials.
The Lifetime Learning Credit offers up to $2,000 per tax return for any level of postsecondary education or courses to acquire job skills. Unlike the AOTC, this credit is non-refundable and available for an unlimited number of years.
Retirement Savings Contributions Credit (Saver's Credit)
Low to moderate-income taxpayers who contribute to retirement accounts may qualify for the Saver's Credit. This non-refundable credit is worth 10%, 20%, or 50% of your contributions, up to $2,000 for individuals or $4,000 for married couples.
For 2026, single filers with adjusted gross income up to $38,250 and married couples up to $76,500 may qualify. This credit rewards retirement savings and can be claimed in addition to the tax deduction for traditional IRA or 401(k) contributions.
Energy Efficient Home Improvement Credit
If you made energy-efficient improvements to your home in 2026, you may qualify for this credit. The credit covers 30% of costs for solar panels, solar water heaters, geothermal heat pumps, and small wind turbines, with no upper limit.
Other improvements like energy-efficient windows, doors, and insulation may qualify for a separate credit of up to $3,200 per year. These credits can significantly offset the cost of home improvements while reducing your energy bills.
Conclusion
Tax credits offer substantial savings opportunities, but you must know about them to claim them. Review your situation carefully and ensure you're not missing any credits that could reduce your tax bill or increase your refund.
Use our Tax Calculator to see which credits you may qualify for and estimate your potential savings.
Frequently Asked Questions
What's the difference between refundable and non-refundable tax credits?
Refundable credits can reduce your tax liability below zero and result in a refund, while non-refundable credits can only reduce your tax bill to zero. Any excess from a non-refundable credit is lost.
Can I claim both the Child Tax Credit and Earned Income Tax Credit?
Yes, you can claim both credits if you qualify for each. They are independent credits with different eligibility requirements. Many families benefit from both simultaneously, significantly reducing their tax burden.
How much is the American Opportunity Tax Credit worth?
The AOTC provides up to $2,500 per eligible student for the first four years of college. Forty percent ($1,000) is refundable, meaning you can receive it even if you don't owe taxes. It covers tuition, fees, and course materials.
Do I qualify for the Saver's Credit?
You may qualify if you contribute to a retirement account and your adjusted gross income is below $38,250 (single) or $76,500 (married filing jointly) for 2026. The credit is worth 10-50% of contributions up to $2,000 ($4,000 for couples).
Can I claim energy credits for home improvements made in previous years?
No, energy credits must be claimed in the year the improvements were made and placed in service. However, if you missed claiming a credit in a previous year, you may be able to amend that year's return within three years of filing.