Tax season is here, and while nobody's excited about paperwork and forms, filing your taxes could put significant money back in your pocket. Money that can help your family achieve stability and work toward your goals. At CAP Utah, we know that for families experiencing poverty or working hard to make ends meet, these credits can mean the difference between falling behind and moving forward.
But the challenge is that many people who qualify for valuable tax credits don't claim them, either because they don't know about them or because navigating the tax system feels overwhelming. When families come to our Community Action Agencies for assistance, we try to help them get every dollar they're entitled to. Here's what you need to know about three important tax credits before you file this year.
Earned Income Tax Credit (EITC)
The Earned Income Tax Credit is one of the most valuable tax credits available to low- and moderate-income workers and families, yet it's also one of the most overlooked. If you're working but still struggling to make ends meet, the EITC could significantly reduce what you owe in taxes or increase your refund.
The EITC is designed specifically for working people who need it most. The credit amount varies based on your income, how many children you have, and other factors like disability status. For tax year 2024, the maximum credit is:
- $632 for workers with no qualifying children
- $4,213 for workers with one qualifying child
- $6,960 for workers with two qualifying children
- $7,830 for workers with three or more qualifying children
Even if you don't have children, you might still qualify. The EITC recognizes that being employed doesn't automatically mean financial security, and this credit helps bridge that gap.
Don't assume you don't qualify. Income limits vary based on your filing status and number of children, and they're higher than many people expect. To learn more about eligibility and how to claim the EITC, visit the IRS EITC page.
Child Tax Credit (CTC)
If you have children at home, the Child Tax Credit can help reduce what you owe in taxes and depending on your income, you may qualify for a refund even if you don't owe anything.
The Child Tax Credit is worth up to $2,200 per qualifying child and reduces your tax liability directly. To qualify, your child generally must be under 17 at the end of the tax year, have lived with you for more than half the year, have a valid Social Security number, and be claimed as a dependent on your return.
Here's where it gets even better: if the credit is more than what you owe in taxes, you may qualify for the Additional Child Tax Credit (ACTC), a refundable portion worth up to $1,700 per qualifying child. You must have earned income of at least $2,500 to be eligible for the ACTC.
The full Child Tax Credit is available to individuals earning up to $200,000 ($400,000 for joint filers). Those with higher incomes may still qualify for a partial credit.To learn more, visit the IRS Child Tax Credit page.
NEW: Additional Deduction for Seniors (Ages 65+)
If you or your spouse are 65 or older, there's a brand new deduction available starting with the 2025 tax year that could provide significant savings
Effective for tax years 2025 through 2028, individuals age 65 and older can claim an additional $6,000 deduction on top of the standard deduction already available to seniors. For married couples where both spouses qualify, that's up to $12,000 in additional deductions.
At CAP Utah, we work closely with older adults through our Area Agencies on Aging and understand the financial pressures seniors face. Many live on fixed incomes while costs for healthcare, housing, and basic necessities continue to rise. This new deduction recognizes those challenges and provides meaningful tax relief.
The good news: this deduction is available whether you itemize or not, making it accessible to more seniors.
Here's what you need to know to qualify:
- You must turn 65 on or before the last day of the tax year
- You must include the Social Security Number of each qualifying individual on your return
- If you are married, you must file jointly to claim the deduction
- The deduction begins to phase out if your modified adjusted gross income exceeds $75,000 ($150,000 for joint filers)
This is a brand new deduction, so make sure your tax preparer is aware of it or mention it if you're filing on your own.
Free Help Through VITA: You Don't Have to Navigate This Alone
We know that tax forms can be confusing, and if you're worried about making a mistake or missing a credit you qualify for, you're not alone. The good news is that free help is available through the Volunteer Income Tax Assistance (VITA) program.
VITA provides free tax preparation by IRS-certified volunteers who know how to help you claim every credit and deduction you're entitled to. Several Community Action Agencies in Utah provide VITA services:
- Bear River Association of Governments (BRAG)
- Ogden-Weber Community Action Partnership (OwCAP)
- Open Doors
- Uintah Basin Association of Governments (UBAOG)
Even if your local Community Action Agency doesn't provide VITA services directly, they can help connect you to a location near you. To find a VITA site, visit the IRS Free Tax Assistance locator or call your local CAA.
Make This Tax Season Count
Tax credits like the EITC, Child Tax Credit, and the new senior deduction exist specifically to put money back in the hands of people who need it most. Don't leave money on the table because you weren't sure if you qualified or didn't know where to get help.
Whether you're a working parent stretching every dollar, a senior on a fixed income, or someone working hard but still struggling to get ahead, these credits are designed for you. And your local Community Action Agency is here to help you access them, and connect you to other resources that can help your family achieve lasting stability.
To find your local Community Action Agency, visit CAPUtah.org or call 2-1-1. To locate a VITA site near you, visit the IRS Free Tax Assistance locator.
Tax season doesn't have to be stressful. With the right support and information, it can be an opportunity to take a real step forward.
Disclaimer: This content is for informational purposes only and does not constitute tax, legal, or financial advice. Please consult with a qualified tax professional regarding your specific situation.
