When filing your 2024 tax return (due April 15, 2025), knowing which deductions and credits apply to you can dramatically reduce your tax bill or increase your refund. But understanding what documents and IRS forms to use is just as important.
Here are the Top 10 tax breaks that may save you thousands — plus exactly what you need to prepare and file them correctly.
1. Child Tax Credit (CTC)[1]
- Savings: Up to $2,000 per child under age 17
- Refundable: Up to $1,700 per child
You’ll Need:
- Social Security numbers for each child
- Proof of relationship and residency (e.g., school or medical records)
- Income documents (W-2, 1099s)
IRS Form:
- Schedule 8812 (Credits for Qualifying Children)
- Included on Form 1040
2. Child and Dependent Care Credit (CDCC)[2]
- Savings: Up to $3,000 for one dependent, $6,000 for two or more
- For childcare/daycare while you work
You’ll Need:
- Provider’s name, address, and TIN, EIN or SSN
- Proof of payment (receipts, bank statements)
IRS Form:
- Form 2441 (Child and Dependent Care Expenses)
- Attach to Form 1040
3. American Opportunity Tax Credit (AOTC)[3]
- Savings: Up to $2,500 per student
- Refundable: Up to $1,000 per student
- Covers first 4 years of college tuition, mandatory school fees, books, and supplies
You’ll Need:
- Form 1098-T from the school
- Receipts for books and course materials
- Student’s SSN
IRS Form:
- Form 8863 (Education Credits)
- Report on Form 1040
4. Earned Income Tax Credit (EITC)[4]
- Savings: Up to $7,830 depending on income and family size
- For low to moderate income earners
| Number of children | Maximum earned income tax credit | Max income: Single or head of household filers | Max income: Married joint filers |
|---|---|---|---|
| 0 | $632 | $18,591 | $25,511 |
| 1 | $4,213 | $49,084 | $56,004 |
| 2 | $6,960 | $55,768 | $62,688 |
| 3 or more | $7,830 | $59,899 | $66,819 |
You’ll Need:
- W-2s, 1099s, or self-employment income records
- Social Security numbers for all dependents
- Proof of residence if claiming dependents
IRS Form:
- Automatically calculated on Form 1040
- May need Schedule EIC if claiming children
5. Student Loan Interest Deduction[5]
- Deduction: Up to $2,500 in interest
- Available even if you don’t itemize
You’ll Need:
- Form 1098-E from loan servicer
- Loan must be in your name and for qualified education
IRS Form:
- Included on Form 1040
- No separate form required
6. Mortgage Interest Deduction[6]
- Deduction: Interest on up to $750,000 in mortgage debt
- Must itemize deductions
You’ll Need:
- Form 1098 from mortgage lender
- Closing statements for recent home purchases
IRS Form:
- Schedule A (Itemized Deductions)
- Attach to Form 1040
7. Charitable Contributions Deduction[7]
- Deduction: Up to 60% of AGI for cash donations
- Must itemize deductions
You’ll Need:
- Receipts for donations under $250
- Written acknowledgment for donations over $250
- Appraisals for property donations over $5,000
IRS Form:
- Schedule A
- May also need Form 8283 (Noncash Charitable Contributions)
8. Medical Expenses Deduction[8]
- Deduction: Qualified expenses exceeding 7.5% of AGI
- Must itemize deductions
You’ll Need:
- Receipts, insurance records, and payment statements
- List of eligible expenses (prescriptions, surgeries, etc.)
IRS Form:
- Schedule A
- Attach to Form 1040
9. 401(k) Contributions Deduction[9]
- Savings: Up to $23,000 (under 50), $30,500 (age 50+)
- Deducted from paycheck pre-tax
You’ll Need:
- Form W-2, Box 12 (Code D shows 401(k) contributions)
IRS Form:
- No separate form needed — deduction is already reflected in Box 1 of W-2 (lower taxable income)
10. Health Savings Account (HSA) Contributions[10]
- Contribution Limit (2024): $4,150 individual / $8,300 family
- Contributions are tax-deductible and grow tax-free
| Self | Family | Catch-up contribution (ages 55+) |
|---|---|---|
| $4,150. | $8,300. | $1,000. |
You’ll Need:
- Form 5498-SA (HSA contributions)
- Form 1099-SA (distributions, if any)
- Receipts for qualified medical expenses
IRS Form:
- Form 8889 (Health Savings Accounts)
- Report on Form 1040
Final Checklist: Documents You Should Gather
| Type of Deduction | Required Documents |
|---|---|
| Income & Wages | W-2, 1099s, self-employment records |
| Dependents | SSNs, birth certificates, school/medical records |
| Education | 1098-T, 1098-E, receipts for books and fees |
| Childcare | Provider’s info and payment records |
| Homeownership | 1098 (mortgage), property tax bills |
| Charitable Giving | Receipts, bank statements, acknowledgment letters |
| Medical | Bills, insurance records, pharmacy printouts |
| Retirement | W-2 (401k), 5498 (IRA/HSA) |
| HSA | Form 8889, 5498-SA, 1099-SA |
Knowing which deductions you qualify for is only half the battle — you also need to gather the correct documents and file the right IRS forms. The good news? Many of these deductions don’t require itemizing, and some credits are even refundable.
Take the time now to get organized — your wallet will thank you in April.
Reference
- [1] IRS, Child Tax Credit
- [2] IRS, Child and Dependent Care Credit information
- [3] IRS, American Opportunity Tax Credit
- [4] IRS, How to claim the Earned Income Tax Credit (EITC)
- [5] IRS, Topic no. 456, Student loan interest deduction
- [6] IRS, Publication 936 (2024), Home Mortgage Interest Deduction
- [7] IRS, Charitable contribution deductions
- [8] IRS, Topic no. 502, Medical and dental expenses
- [9] IRS, 401(k) plan overview
- [10] IRS, Publication 969 (2024), Health Savings Accounts and Other Tax-Favored Health Plans
⚠️ Disclaimer: The information on this website is provided for general informational purposes only and is not intended as financial advice. Always consult with a qualified professional advisor before making any financial decisions.
