Credits and deductions for individuals

You can claim credits and deductions when you file your tax return to lower your tax. Make sure you get all the credits and deductions you qualify for. If you have qualified dependents, you may be eligible for certain credits and deductions.

Claim credits

A credit is an amount you subtract from the tax you owe. This can lower your tax payment or increase your refund. Some credits are refundable — they can give you money back even if you don't owe any tax.

To claim credits, answer questions in your tax filing software. If you file a paper return, you’ll need to complete a form and attach it.

Here are credits you can claim:

If you earn under a certain income level

See if you qualify for the Earned Income Tax Credit. This is a refundable credit, so you can get back more than you pay in taxes. If you qualify, you can claim it even if you don’t normally file taxes or aren’t required to file.

If you’re a parent or caretaker

Find credits if you:

If you pay for higher education

If you put money into retirement savings

If you invest in clean vehicles or clean home energy

Find credits if you:

If you buy health insurance in the marketplace

If you qualify for other personal tax credits

Find less common credits for people who:

Take deductions

A deduction is an amount you subtract from your income when you file so you don’t pay tax on it. By lowering your income, deductions lower your tax.

You need documents to show expenses or losses you want to deduct. Your tax software will calculate deductions for you and enter them in the right forms. If you file a paper return, your deductions go on Form 1040 and may require extra forms.

Standard vs. itemized deductions

Most people take the standard deduction, which lets you subtract a set amount from your income based on your filing status.

If your deductible expenses and losses are more than the standard deduction, you can save money by deducting them one-by-one from your income (itemizing). Tax software can walk you through your expenses and losses to show the option that gives you the lowest tax.

Some people, including nonresidents and partial-year filers, can’t take the standard deduction.

Standard deduction amounts

The standard deduction for 2023 is:

Find the standard deduction if you’re:

If you’re married filing separately, you can’t take the standard deduction if your spouse itemizes. You must both choose the same method.

Deductible expenses

You can deduct these expenses whether you take the standard deduction or itemize:

If you itemize, you can deduct these expenses: