Tax season, regardless of the year, is both confusing and stressful. This can lead to some families putting off their taxes, incurring needless fees and penalties. However, tax season is also an opportunity for families to claim a number of tax credits that can be highly beneficial to them.

A common misconception is that individuals don’t believe they have earned enough income to be eligible for tax credits. The reality is that every person’s individual situation is different and working with someone to evaluate your personal tax situation is the best way to determine what you may be entitled to receive. Below is a list of credits available for the 2024 tax year:

Earned Income Tax Credit (EITC)
The Earned Income Tax Credit is one of the most beneficial tax credits for low-income taxpayers. It is designed to support working individuals and families by reducing the tax burden and potentially providing a refund.
Who Qualifies?

• You must have earned income from employment, self-employment, or another qualifying source.
• Your income must fall below a specific threshold, which depends on your filing status and the number of qualifying children you claim.
• Even individuals without children may qualify, though the credit amount will be smaller.
  -Every year, a number of eligible households overlook this credit, missing out on the benefits. This includes people living in non-traditional homes such as grandparents raising grandchildren, people who have disabilities or are raising children with disabilities and people without children.
  -Last year, 23 million eligible households received an average of $2,541.

Child Tax Credit (CTC)
The Child Tax Credit provides substantial support to families with dependent children.
Who Qualifies?

• Taxpayers with a qualifying child with a valid social security number under the age of 17 at the end of the tax year.
  How Much Can You Claim?
• Eligible taxpayers can claim up to $2,000 per child. A portion of this credit may be refundable, meaning you could receive money back even if you owe no taxes.

Additional Child Tax Credit (ACTC)
If you qualify for the Child Tax Credit but your tax liability is too low to claim the full amount, the refundable Additional Child Tax Credit may apply. This allows families to receive up to $1,700 per qualifying child as a refund.

Adoption Credit
If you adopt an eligible child, you can claim the Adoption Credit on your federal income taxes for up to $16,810 in qualified expenses for 2024.

American Opportunity Tax Credit (AOTC)
The AOTC helps low-income taxpayers who are pursuing higher education by covering some of the costs of tuition, fees, and course materials.
Who Qualifies?

• Students enrolled at least half-time in a degree or credential program.
• Income limits apply, with the credit phasing out for higher-income taxpayers.
  How Much Can You Claim?
  -The maximum credit is $2,500 per eligible student, and up to $1,000 is refundable.
• You will need to produce your 1098-T Tuition statement when you are filing your taxes to claim your credit.

Lifetime Learning Credit (LLC)
The Lifetime Learning Credit is another education-related credit, but it has broader eligibility than the AOTC.
Who Qualifies?

• Taxpayers paying for tuition and related expenses for themselves, their spouse, or a dependent.

How Much Can You Claim?
The LLC provides a credit of up to $2,000 per return, though it is non-refundable.

Saver’s Credit
The Saver’s Credit is designed to encourage low-income taxpayers to save for retirement.
Who Qualifies?

• Taxpayers who contribute to an IRA, 401(k), or similar retirement plan.
• Income limits apply, and the credit is worth up to 50%, 20%, or 10% of your contributions, depending on your income.
  How Much Can You Claim?
  The maximum credit is $1,000 for individuals and $2,000 for married couples filing jointly.

Premium Tax Credit (PTC)
The Premium Tax Credit helps low- to moderate-income individuals and families pay for health insurance purchased through the Health Insurance Marketplace.
Who Qualifies?

• Taxpayers with household incomes between 100% and 400% of the federal poverty level.
• You must not be eligible for affordable health insurance through an employer or a government program like Medicaid.
  How Much Can You Claim?
  The amount varies based on income, family size, and the cost of insurance in your area.

Tax Credits for Seniors
Massachusetts offers what is known as a Senior Circuit Breaker Tax Credit.
Who Qualifies?

• Taxpayers aged 65 and older.
• The credit is based on real estate taxes or rent paid by the taxpayer in 2024.
  How Much Can You Claim?
  The maximum credit for the 2024 tax year is $2,370.

Why Tax Credits Matter
Tax credits are a vital tool for reducing financial inequality and empowering low-income taxpayers. Unlike deductions, which lower your taxable income, tax credits directly reduce the amount of tax you owe. Many credits are refundable, meaning they can lead to a refund even if you owe no tax at all.

Taking advantage of these credits can significantly improve your financial situation. If you’re unsure about your eligibility or need assistance filing your taxes, consider reaching out to a Volunteer Income Tax Assistance program (VITA). Their services are free for qualified applicants. Local clinics are available at the following locations:

Asian American Civic Association Inc – AACA
87 Tyler Street
5th Floor
Boston, MA 02111
617-426-9492

ABCD Robert M. Coard Building
178 Tremont Street
Boston, MA 02111
617-348-6329

ABCD North End West End NSC
1 Michelangelo Street
Boston, MA 02113
617-523-8125

Additional locations can be found on the IRS Website.

If you need assistance with tax years outside of 2024 or have other issues involving the IRS or the Massachusetts Department of Revenue, there are Low-Income Taxpayer Clinic (LITC) throughout the Commonwealth that can be of assistance. Local clinics are as follows:

Asian American Civic Association
87 Tyler Street
5th Floor
Boston, MA 02111
617-426-9492

Greater Boston Legal Services
197 Friend Street
Boston, MA 02114
617-371-1234

Legal Services Center of Harvard Law School
122 Boylston Street
Jamaica Plain, MA 02130
617-522-3003

Additional locations can be found on the IRS website.

Mark is the Director of Services for the LITC at the Asian American Civic Association, publisher of the Sampan. Email: LITC@aaca-boston.org. Phone: 617-426-9492 ext. 285