Tax season is here, and if you’re hoping for a huge refund—maybe even up to $10,000— you’ll need to take advantage of every tax break available. Many people miss out on thousands of dollars simply because they don’t know what credits and deductions they qualify for. Let’s break it down in simple terms so you can get the biggest refund possible.
1. Claim the Earned Income Tax Credit (EITC)
This is one of the most powerful ways to boost your refund. The Earned Income Tax Credit (EITC) is designed to help low-to-moderate-income workers, and it’s completely refundable—meaning if the credit is bigger than the taxes you owe, you’ll get the difference as a refund.
- If you have three or more kids, you could get up to $7,430 from the federal EITC.
- California has its own version, CalEITC, which can add even more money to your refund.
Even if you don’t have kids, you might still qualify for a smaller credit. It’s free money—don’t leave it on the table!
2. Get the Child and Dependent Care Credit
If you pay for childcare or care for a dependent while you work, you could be eligible for this tax credit.
- You can claim up to $3,000 in expenses for one child or $6,000 for two or more.
- This credit directly lowers the taxes you owe, which can lead to a bigger refund.
Even if you don’t pay for full-time daycare, costs for summer camps or after-school programs may count, so be sure to check!
3. Max Out Retirement Contributions
Putting money into a 401(k) or Traditional IRA not only helps your future self but lowers your taxable income, which can mean a bigger refund.
- In 2024, you can contribute up to $7,000 to an IRA ($8,000 if you’re over 50).
- Contributions to a Health Savings Account (HSA) are also tax-deductible and can help reduce your tax bill.
If you’re looking for ways to keep more of your money, this is one of the smartest moves you can make.
4. Choose Between Standard or Itemized Deductions
Most people take the standard deduction, but if you have certain big expenses, itemizing might get you a bigger refund.
- Mortgage interest
- Medical expenses
- State and local taxes
- Charitable donations
If these add up to more than $13,850 (for single filers) or $27,700 (for married couples), itemizing could be the better choice.
5. Use Education Credits
Paying for college or continuing education? Don’t forget about these:
- The American Opportunity Tax Credit (AOTC) – worth up to $2,500 per student.
- The Lifetime Learning Credit (LLC) – worth up to $2,000 per year.
These credits can cover tuition, books, and other school expenses. If you or your dependents are in school, this is an easy way to boost your refund.
6. Adjust Your Tax Withholdings
If you didn’t get a big refund last year, it might be because too little tax was taken out of your paycheck. You can adjust your W-4 form at work to make sure you’re getting the right amount withheld so you’re not leaving money behind.
7. Take Advantage of California’s Special Tax Credits
California has some extra ways to save on taxes:
- The Renter’s Credit – If you rent and meet income limits, you could get extra cash back.
- The Young Child Tax Credit – Families with kids under 6 who qualify for CalEITC can get an additional credit.
Even if you think you don’t qualify, it’s always worth checking—these credits could add hundreds to your refund.
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