The Complete Guide to Federal Tax Credits & Deductions for 2026

Six Credits, Six Income Scales: Why You Can't Check Just One

Unlike the OBBBA provisions covered in our companion guide, the credits and deductions in this guide aren't a single new law -- they're six long-standing, separately-administered pieces of the tax code that most households never compare side by side, even though many families qualify for two, three, or more of them at once. Each one uses its own income measure (earned income, AGI, or MAGI), its own phase-out range, and its own refundability rules, so checking eligibility for one tells you almost nothing about the others. This site has a dedicated, IRS-sourced calculator for all six:

1. Earned Income Tax Credit (EITC) -- up to $8,231 (2026) for working families with 3+ qualifying children
2. Child Tax Credit / ACTC / Credit for Other Dependents -- up to $2,200 per qualifying child, $500 per other dependent
3. Saver's Credit -- up to $2,000 per person for retirement contributions, in its final year in this form
4. Education Tax Credit (AOTC vs. Lifetime Learning) -- up to $2,500 (AOTC) or $2,000 (LLC) per return
5. Student Loan Interest Deduction -- up to $2,500 of interest paid
6. ACA Premium Tax Credit Repayment Calculator -- reconciles advance marketplace subsidies against your actual income

The first five are credits or deductions you actively claim; the sixth is a downside-risk check for anyone receiving ACA marketplace subsidies. Together they cover working families, parents, college students, retirement savers, student loan borrowers, and ACA enrollees -- run the ones that apply to your household rather than assuming a single headline number applies to everyone.

Earned Income Tax Credit (EITC): The Refundable Credit for Working Families

The EITC (26 U.S.C. Sec. 32) is fully refundable -- you can receive it even if you owe zero federal income tax. For 2026, the maximum credit is $664 with no qualifying children, $4,427 with one, $7,316 with two, and $8,231 with three or more, phasing in as a percentage of earned income and then phasing out based on the greater of earned income or AGI. The phase-out starts at $23,890 (single/HOH) or $31,160 (joint) for filers with children, and completes between roughly $52,000 and $70,000 depending on filing status and number of children. One easy-to-miss disqualifier: if your investment income exceeds $12,200 for 2026 (interest, dividends, capital gains, rental income), you're barred from the EITC entirely regardless of how low your earned income is. Run your own numbers, including the investment-income test, with the EITC Calculator.

Child Tax Credit, Additional CTC, and Credit for Other Dependents

The Child Tax Credit (26 U.S.C. Sec. 24) is worth $2,200 per qualifying child under 17 for 2026, plus a separate, fully nonrefundable $500 Credit for Other Dependents (ODC) for dependents who don't qualify for the CTC itself (an older child, a dependent parent, etc.). Both amounts phase out together at $50 per $1,000 of MAGI over $200,000 (single/HOH/MFS) or $400,000 (joint) -- a much higher ceiling than the EITC, which means many households phase out of the EITC long before they phase out of the CTC. Up to $1,700 per qualifying child of any unused CTC (never the ODC) can become the refundable Additional Child Tax Credit, but only up to 15% of earned income above $2,500 -- a cap that's why some very-low-income families with zero tax liability still can't collect the full $2,200 per child. Because the CTC and EITC use different income measures and different phase-out ceilings, always run both: our Child Tax Credit Calculator handles the CTC/ACTC/ODC split, and pairs directly with the Child & Dependent Care Credit Calculator for families paying for childcare on top of raising qualifying children.

Saver's Credit: Claim It in 2026, Because It Won't Exist in This Form in 2027

The Saver's Credit (26 U.S.C. Sec. 25B) gives retirement savers a 50%, 20%, or 10% credit on up to $2,000 of their own contributions ($4,000 combined for joint filers, $2,000 each) to a 401(k), IRA, or similar plan, based on AGI tier. For 2026, the 50% tier tops out at $48,500 AGI (joint) / $36,375 (head of household) / $24,250 (other), with the credit phasing to 20% and then 10% up to a completed phase-out around $80,500 / $60,375 / $40,250. What makes 2026 different: Sec. 25B(d)(1)(B) limits this credit-based version to "any taxable year beginning before January 1, 2027" -- starting with the 2027 tax year, it's replaced by the Saver's Match under SECURE 2.0 (26 U.S.C. Sec. 6433), a federal matching contribution deposited directly into your retirement account rather than a credit computed on your tax return. If you're eligible, 2026 is the last year to claim this specific tax-return credit -- run your numbers with the Saver's Credit Calculator before the mechanism changes.

AOTC vs. Lifetime Learning Credit: Which Education Credit Wins?

The two federal education credits (26 U.S.C. Sec. 25A) share the same MAGI phase-out -- $80,000-$90,000 (single/HOH) or $160,000-$180,000 (joint) -- but differ in almost every other way. The American Opportunity Tax Credit (AOTC) is worth up to $2,500 per student (100% of the first $2,000 of expenses plus 25% of the next $2,000), up to 40% refundable, but limited to a student's first 4 years, at least half-time enrollment, and barred by a felony drug conviction. The Lifetime Learning Credit (LLC) is worth up to $2,000 per TAX RETURN (20% of up to $10,000 of expenses, combined across every student), entirely nonrefundable, but has no year limit and covers graduate school and even non-degree job-skills courses. You can't claim both for the same student's same expenses in the same year, but a family with one undergrad and one grad student can claim the AOTC for one and the LLC for the other on the same return. Compare both side by side with the Education Tax Credit Calculator.

Student Loan Interest Deduction: A Deduction, Not a Credit

Unlike the credits above, the student loan interest deduction (26 U.S.C. Sec. 221) is an above-the-line deduction you can claim even if you take the standard deduction -- worth up to $2,500 of interest paid, a fixed dollar cap set directly by statute rather than inflation-indexed. It phases out at $85,000-$100,000 MAGI (single) or $175,000-$205,000 (joint) for 2026, and like the education credits, is completely disallowed if you file Married Filing Separately. Because a deduction only reduces taxable income (not your tax bill dollar-for-dollar like a credit), its real value depends on your marginal tax rate -- our Student Loan Interest Deduction Calculator converts your deduction into an estimated dollar tax savings, and pairs well with our FAFSA SAI vs. old EFC guide if you're still in school and comparing aid formulas.

The One That Isn't a Credit You Claim -- It's a Repayment You Might Owe

If your household receives ACA marketplace premium subsidies (the Premium Tax Credit), there's a sixth item on this list that works in reverse: a repayment risk, not a benefit. If your actual income at tax time comes in higher than what you estimated when you enrolled, you may have received more advance Premium Tax Credit than you were entitled to -- and OBBBA Section 71305 completely repeals the "repayment limitation" safety net in 26 U.S.C. Sec. 36B(f)(2)(B) starting with the 2026 tax year (returns filed in 2027). Through tax year 2025, that cap limited repayment to as little as $375-$3,250 depending on income and filing status for anyone under 400% of the federal poverty line. Starting with 2026, there is no cap at any income level -- 100% of any excess advance credit must be repaid. If you're enrolled in ACA coverage with subsidies, check your exposure with the Premium Tax Credit Repayment Calculator well before year-end, while there's still time to report an income change to your marketplace.

Putting It Together: Which of These Apply to Your Household?

Because each of these six runs on its own income scale, check them independently rather than assuming one determines the others:

If you're a working parent with modest income: run the EITC and CTC together -- the EITC phases out at a much lower income than the CTC, so you may qualify for a partial EITC and the full CTC, or the full CTC alone once your income outgrows the EITC.

If you're paying for childcare and raising kids: layer the CTC with the Child & Dependent Care Credit -- both can apply to the same qualifying child for different expenses.

If you're contributing to a 401(k) or IRA and your income is moderate: claim the Saver's Credit now -- 2026 is its last year as a credit computed on your return before the Saver's Match program replaces it in 2027.

If you or a dependent are in college: run both education credits per student, and check the student loan interest deduction separately if you're already repaying loans from a prior degree.

If you have ACA marketplace coverage with subsidies: check your repayment exposure now that the repayment cap is gone for 2026 -- a mid-year income increase you don't report could mean repaying the full excess subsidy with no ceiling.

None of these six require picking just one: a self-employed parent with a child in daycare, a kid in college, retirement contributions, and student loans from their own degree could reasonably run all six calculators and find several apply simultaneously.