What Tax Credits Am I Eligible for in 2025?
Tax credits are one of the easiest ways to lower how much you owe the IRS. Unlike deductions, which reduce your taxable income, tax credits reduce your tax bill dollar-for-dollar—and some even give you money back!
Here’s a quick look at the most common tax credits you might qualify for in 2025, especially if you live and work in Los Angeles.
1. Earned Income Tax Credit (EITC)
If you’re working but don’t earn a lot, you might qualify for the EITC, even if you don’t have kids.
- For 2025, income limits depend on filing status and number of children.
- You must have earned income (like wages or freelance work).
Example:
A single freelancer in Los Angeles who earns $18,000 a year could get a refund of up to $600+ if eligible.
2. Child Tax Credit (CTC)
If you have dependent children under age 17, you could claim up to $2,000 per child (and possibly more if laws expand the credit).
Example:
A married couple with two kids under 17 could reduce their tax bill by up to $4,000.
3. Child and Dependent Care Credit
Did you pay for daycare, summer camp, or after-school programs so you could work or look for work? You could claim up to 35% of those costs, depending on your income.
4. American Opportunity Credit (AOTC)
If you or your dependent is in college, you could claim up to $2,500 per student for tuition, books, and supplies (first 4 years only).
5. Lifetime Learning Credit
Not just for students! If you took any courses to improve job skills or change careers, you could claim 20% of the first $10,000 in education costs (up to $2,000 per return).
6. Saver’s Credit
Contributed to an IRA or 401(k)? Lower- to moderate-income earners may get a credit up to $1,000 ($2,000 for married couples).
7. Clean Vehicle Credit
Bought a new or used electric vehicle (EV) in 2025? You could qualify for a credit up to $7,500—as long as the car meets certain requirements.
Tip: Tax Credits Can Be Complex
Eligibility often depends on income, filing status, age, and more. Some credits are refundable (you get money back even if you owe $0), and others are nonrefundable (they just reduce your tax bill).
A knowledgeable Tax Advisor Los Angeles can make sure you don’t leave money on the table.
Let Velin & Associates, Inc. Maximize Your Tax Benefits
Not sure which tax credits you qualify for? Our expert team helps individuals, freelancers, and small business owners in LA get every dollar they’re owed. For more information about our services, please visit our website.
Velin & Associates, Inc
8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.