The biggest refunds come from claiming deductions and credits you actually may have access to for, not from hiding income or inventing expenses

A larger tax refund means you overpaid during the year—the IRS held more of your money than it needed to. You cannot manufacture a refund that does not exist, but you can reduce what you owe by claiming every deduction and credit your situation supports. The difference between a small refund and a large one usually comes down to three things: whether you claim all available credits, whether you use the right filing status, and whether you catch deductions that apply to your specific life.

The IRS does not volunteer information about credits or deductions you might have missed. You have to know they exist and know that you may have access to. This guide covers the most common ones that people overlook, how to learn about you may have access to, and what documents you need to claim them.

Key Takeaways

  • Tax credits reduce what you owe dollar-for-dollar, while deductions only reduce your taxable income, so credits almost always produce larger refunds.
  • The Earned Income Tax Credit and Child Tax Credit are the two largest credits for most households, and many people do not claim them because they do not know they may have access to.
  • Your filing status (single, married filing jointly, head of household) changes how much you can deduct and which credits you can claim, so choosing correctly can add hundreds to your refund.
  • Common overlooked deductions include student loan interest, educator expenses, and medical costs above a certain threshold, each of which requires specific documentation.
  • If your income is below certain thresholds, you may not have to file at all, but filing anyway can get you a refund from credits you would otherwise miss.

Understand the difference between credits and deductions

A tax credit reduces the amount of tax you owe, dollar for dollar. If you owe $1,500 in tax and you claim a $500 credit, you now owe $1,000. A tax deduction reduces the income the IRS counts as taxable. If you earn $50,000 and claim a $5,000 deduction, the IRS treats you as if you earned $45,000. Because credits directly reduce tax owed and deductions only reduce the income that gets taxed, credits almost always produce larger refunds.

Some credits are refundable, meaning if the credit is larger than what you owe, the IRS sends you the difference. The Earned Income Tax Credit and the Additional Child Tax Credit are refundable. Other credits are non-refundable, meaning they can reduce your tax to zero but not below it. The American Opportunity Tax Credit is non-refundable (though part of it is refundable). Knowing which is which matters because a refundable credit can produce a refund even if you owe no tax at all.

Claim the Earned Income Tax Credit if your income is below the threshold

The Earned Income Tax Credit (EITC) is a refundable credit for people who work but earn below a certain income. For the 2024 tax year, the income limits range from about $16,000 for a single person with no children to about $63,000 for a married couple filing jointly with three or more children. The credit amount depends on how much you earned and how many children you have.

Many people do not claim the EITC because they do not know it exists or they think they do not may have access to. If you worked during the year and your total income was below the limit for your filing status and number of children, you should look into this. You can use the IRS EITC tool on irs.gov to see if you may have access to. If you do, the refund can be $600 to $3,700 or more, depending on your situation. You need your W-2 forms or 1099 forms showing what you earned.

Claim the Child Tax Credit and Additional Child Tax Credit

If you have children under 17, you can claim the Child Tax Credit—$2,000 per child for the 2024 tax year. This is a large credit, and many families claim it automatically. However, the Additional Child Tax Credit is refundable, meaning if you do not owe enough tax to use the full $2,000 credit, you can still get money back. The refundable portion is limited, but for families with lower income, it can mean the difference between a small refund and a much larger one.

To claim this credit, you need the child's Social Security number, birth date, and relationship to you. The child must be a U.S. citizen, national, or resident alien. If you have adopted children or foster children, the rules are different—check the IRS website or Form 1040 instructions for your specific situation.

Check whether you should file as head of household instead of single

Your filing status determines how much you can deduct and which credits you can claim. If you are single but you paid more than half the household expenses and lived with a may have access to dependent (usually a child or parent), you may be able to file as head of household instead of single. Head of household status gives you a higher standard deduction and better tax rates, which can mean a significantly larger refund.

For example, for the 2024 tax year, the standard deduction for head of household is $20,550, while for single it is $14,600. If you may have access to for head of household and you do not claim it, you are leaving money on the table. You do not need to be divorced or separated—you just need to have paid for more than half the household costs and have a may have access to dependent living with you for more than half the year.

Claim education credits if you paid for college or vocational training

If you or a dependent paid for higher education during the year, you may be able to claim the American Opportunity Tax Credit (up to $2,500 per student) or the Lifetime Learning Credit (up to $2,000 per return). These are different credits with different rules about what counts as a may have access to expense and who can claim them.

The American Opportunity Credit is partially refundable—up to $1,000 of the $2,500 can come back to you as a refund even if you owe no tax. The Lifetime Learning Credit is non-refundable. You cannot claim both credits for the same student in the same year, so you have to choose which one gives you the larger benefit. You will need Form 1098-T from the school showing what you paid, or receipts if the school did not send the form.

Deduct student loan interest and educator expenses

If you paid interest on a student loan during the year, you can deduct up to $2,500 of it, even if you take the standard deduction. This is an above-the-line deduction, meaning it reduces your income before the standard deduction is applied. You do not need to itemize to claim it. Your loan servicer will send you Form 1098-E showing how much interest you paid.

If you are a teacher or other educator and you spent your own money on classroom supplies, books, or equipment, you can deduct up to $300 of those expenses. This is another above-the-line deduction. You do not need receipts, but you should keep records in case the IRS asks. This deduction is often overlooked because it is small, but if you spend money on your classroom every year, it adds up.

Itemize deductions if they exceed the standard deduction

Most people take the standard deduction, which for 2024 ranges from $14,600 (single) to $29,200 (married filing jointly). However, if your deductible expenses—mortgage interest, property taxes, charitable donations, medical expenses above 7.5% of your income, and others—add up to more than the standard deduction, you can itemize instead and deduct the larger amount.

Itemizing requires keeping receipts and filing Schedule A with your tax return, which takes more work. But if you own a home with a mortgage, made large charitable donations, paid significant state and local taxes, or had major medical expenses, itemizing might produce a larger refund. Use a tax calculator or worksheet to compare your itemized deductions to the standard deduction before you decide.

File even if you do not owe tax, to claim refundable credits

If your income is very low, you might not be required to file a tax return. However, if you have a refundable credit like the EITC or the Additional Child Tax Credit, filing anyway can get you money back. The IRS will not send you a refund you do not claim—you have to file the return to get it.

You have three years from the original due date to file and claim a refund. If you did not file in prior years and you think you might have may have access to for credits, you can still file those returns and get the refund, though you will need to gather documents from those years. The IRS Free File program offers free tax software to people below certain income thresholds, so cost should not be a barrier.

Frequently Asked Questions

Can I claim a deduction for something I did not actually pay for?

No. Every deduction and credit requires that you actually incurred the expense or met the requirement. The IRS can ask for proof—receipts, Form 1098-T from your school, your mortgage statement, or other documentation. If you cannot prove you paid, you cannot claim the deduction. Claiming false deductions can result in penalties, interest, and in serious cases, criminal charges.

What if I made too much money to claim the EITC but I have children?

You may still claim the Child Tax Credit, which has higher income limits than the EITC. For 2024, the credit begins to phase out at $400,000 for married couples filing jointly and $200,000 for single filers. Check the IRS website to see if your income falls within the range for the full credit or a partial credit.

Do I need to hire a tax professional to get the biggest refund?

Not necessarily. The IRS Free File program offers free tax software to people below certain income thresholds, and the software will walk you through credits and deductions you might may have access to for. If your situation is complex—you own a business, have rental income, or have significant itemized deductions—a tax professional may find deductions you would miss, but for most people, good software and careful attention to the questions asked will get you most of the way there.

What if I claimed a deduction last year and the IRS rejected it?

The IRS will send you a notice explaining why. Read it carefully—it will tell you what was wrong and what you can do. You may be able to file an amended return (Form 1040-X) if you disagree, or you may need to provide additional documentation. If you do not understand the notice, the IRS has a phone line for taxpayer assistance, or you can visit a local IRS office.

Can I get a bigger refund by claiming my ex-partner as a dependent?

No. A dependent must meet specific IRS requirements: they must be a U.S. citizen, national, or resident alien; they must live with you for more than half the year (with limited exceptions); and you must provide more than half their financial support. An ex-partner almost never meets these requirements. Claiming someone as a dependent when they do not may have access to is tax fraud.