π‘ What to Know About 2026 Federal Tax Credits π‘
Tax credits can seriously lower your tax bill but some big ones changed for 2026. Hereβs the quick breakdown π
β
Tax credits β tax deductions
Credits reduce your taxes dollar-for-dollar, making them more valuable than deductions, which only lower taxable income.
π Three types of tax credits:
β’ Refundable β You get the full credit even if it exceeds what you owe (hello, refund πΈ)
β’ Nonrefundable β Lowers your tax bill to zero, but no leftover refund
β’ Partially refundable β A mix of both
β‘ Whatβs gone for 2026:
Federal credits for electric vehicles and energy-efficient home upgrades expired at the end of 2025.
π¨βπ©βπ§ Earned Income Tax Credit (EITC) updates for 2026:
β’ Up to $664 with no children
β’ Up to $4,427 with one child
β’ Up to $7,316 with two children
β’ Up to $8,231 with three or more children
π Education credits still matter
Some, like the American Opportunity Tax Credit, are partially refundable and can still put money back in your pocket.
π Bottom line:
Credits can make a huge difference especially refundable ones. Even if you think you donβt owe taxes, filing could still mean money back. Always worth a closer look π
https://www.floridarealtors.org/news-media/news-articles/2026/01/what-know-about-2026-federal-tax-credits?utm_campaign=1-28-26+Florida+Realtors+News&utm_medium=email&utm_source=iPost
