Are there other tax credits I may qualify for?
Yes. Beyond the Oregon state income tax credit which you earn for contributing to an Oregon ABLE Savings Plan account, the IRS offers several tax credits that can provide meaningful savings for families, reducing the amount filers owe on their taxes, and in some cases, leading to an increased tax refund.
Many qualified taxpayers overlook the Earned Income Tax Credit (EITC), a federal refundable credit for families with low or moderate incomes. If you qualify and make less than around $59,000 per year, you could get between $560 and $6,935.
The Saver’s Credit is a federal tax credit you can get for making contributions to your retirement plan or an ABLE account if you’re the designated beneficiary. The maximum credit is $1,000 ($2,000 if married filing jointly).
The Child Tax Credit is a federal tax credit that helps families with qualifying children get a tax break (up to $2,000 per kid, with $1,500 being potentially refundable). You may be able to claim the credit even if your income is below the IRS minimum required to file a tax return.
The Oregon Kids Credit is a refundable state tax credit for low-income people with young dependent children. For those with a modified adjusted gross income (AGI) of $25,000 or less, the full credit is $1,000 per child for up to five dependent children ages 0 to 5 at the end of the tax year.
If you paid someone to care for your child or other qualifying person so you could work or look for work, you may be able to take the federal Child and Dependent Care Credit to help cover your expenses. The credit covers a maximum 35% of up to $3,000 of childcare/dependent costs, and up to $6,000 of expenses for two or more dependents.
If you adopt a child, the federal Adoption Credit covers up to $14,890 in adoption costs per child. People who adopt children with functional needs may get the full credit even if their actual expenses were less.
Education credits such as the federal American Opportunity Tax Credit (AOTC) and the federal Lifetime Learning Credit (LLC) help with the cost of higher education. The AOTC runs up to $2,500 per student for tuition and other associated education costs during the first four years of college. It is partially refundable, so if the credit lowers your tax bill to $0, you can get up to 40% (limited to $1,000) back as a refund. The LLC can get up to $2,000 for undergraduate, graduate or even non-degree courses at accredited institutions, as well as associated education costs.
