The days—and months—leading up to April 15 don’t have to be stressful. Tax season can actually be an opportunity to put more money back in your pocket thanks to tax refunds. In fact, 78% of U.S. families received tax refunds in 2020.
If you’re wondering how to receive and maximize your tax refund, the key is understanding which credits, deductions and strategies reduce your tax bill and increase what you get back.
Before diving into this guide, head over to KashKick so you can get rewarded for filing your taxes—literally. KashKick pays members to take surveys, play games, try apps and even file their taxes. When you prep and file through E-File, you can get a $5 KashKick reward.
OK, now are you ready to maximize your tax refund? Here’s what you need to know.
Key Takeaways
- Knowing how to maximize your tax refund starts with strategy. Updating your W-4, tracking expenses, claiming refundable credits, and choosing between standard vs. itemized deductions can all help increase what you get back.
- Tax credits are the fastest way to boost your refund. Refundable credits like the Child Tax Credit, Earned Income Tax Credit and Saver’s Credit reduce your tax bill dollar-for-dollar and can even increase your refund beyond what you paid in.
- Self-employed income unlocks powerful deductions. If you earn from freelancing, side hustles or even platforms like KashKick, tracking business expenses like mileage, home office use and retirement contributions can significantly maximize your tax refund.
- Timing and accuracy matter just as much as deductions. Filing electronically and avoiding common mistakes help ensure you receive your tax refund faster and in full.
What’s a Tax Refund?
A tax refund is money you receive when you’ve paid more taxes during the year than your actual tax liability. You may get a refund if:
- Your paycheck withholding was too high
- You’re self-employed and overpaid quarterly estimated taxes
- You qualify for refundable tax credits
- You forgot to adjust your W-4 after life changes (think: marriage, child)
Remember: Maximizing your tax refund means legally reducing your tax bill so more of what you paid goes back into your pocket.
How to Maximize Your Tax Refund in 2026
Before diving into every possible deduction, start with a strategy. These steps help you increase your refund before you even file:
- Update your W-4. Make sure your employer is withholding the right amount so you’re not under- or over-paying.
- Track expenses year-round. Mileage, donations, education costs and business expenses add up fast.
- Claim all refundable credits. These can push your tax balance below zero and increase your refund. (See more on refundable credits below.)
- Compare standard vs. itemized deductions. Always choose the option that lowers your taxable income most.
- Contribute to tax-advantaged accounts. IRA and HSA contributions before the tax deadline can reduce what you owe.
- File electronically—and early. This reduces errors and speeds up your refund.
- Double-check dependents and filing status. Small mistakes here can cost you thousands.
With these tips in mind, let’s dig deeper into tax deductions and credits.
Tax Deductions vs. Tax Credits
Tax deductions and credits can significantly reduce the taxes you owe to the government. Understanding the difference between the two is essential for maximizing your tax benefits.
Tax Deductions
Tax deductions lower your taxable income. For example, if you’re in the 24% tax bracket, a $1,000 deduction saves you approximately $240 in taxes.
You can choose between taking a standard deduction or itemizing deductions. The standard deduction is a fixed amount set by the IRS and varies depending on your filing status. Itemized deductions, on the other hand, let you deduct specific expenses. (More on those below.)
When the total of your itemized deductions is higher than the standard deduction, itemizing is one of the best ways to maximize your tax refund.
Tax Credits
Tax credits reduce your tax bill dollar-for-dollar, making them arguably more valuable than deductions. For example, a tax credit valued at $1,000 directly lowers your tax bill by $1,000.
There are two types of tax credits:
- Refundable credits increase your refund even if you don’t owe anything.
- Nonrefundable credits reduce your bill to zero but not below.
Refundable credits are especially powerful when trying to maximize your tax refund.
15 Deductions and Credits to Maximize Your Tax Refund
Here are some of the most valuable—and often missed—ways to increase your tax refund.
👪 Family and Dependent Credits
- Child Tax Credit: If you have children under the age of 17 and meet specific requirements, you could be eligible to receive up to $2,200 per child for your 2025 tax return, with $1,700 of that being potentially refundable.
- Child & Dependent Care Credit: This credit covers a percentage of childcare so you can look for work, work or go to school. This credit is based on your income and a percentage of the expenses. Find out if you qualify through the IRS.
- Adoption Credit: If you adopted, you could be eligible to claim this tax credit—up to $17,280 per child. Starting in 2025, up to $5,000 of this credit is refundable. The nonrefundable portion can be carried forward for up to five years.
- Earned Income Tax Credit (EITC): This credit is for low- to moderate-income workers and families. The credit amount depends on if you have kids, dependents, are disabled or meet other criteria. Get more details on who qualifies.
🍎 Education Credits and Deductions
- American Opportunity Tax Credit: This tax credit lets you claim up to $2,500 spent on tuition and related expenses. Learn more about this credit.
- Lifetime Learning Credit: You can claim up to $2,000 per tax return for qualified tuition and related expenses for eligible students attending eligible undergraduate, graduate and professional degree programs.
- Student Loan Interest Deduction: Deduct up to $2,500 from your taxable income if you paid interest on your student loans during the year.
🏠 Home and Energy Credits and Deductions
- Mortgage Interest Deduction: This deduction helps make owning a home more affordable! You get to claim the mortgage interest you paid throughout the year.4
- Solar Tax Credit: Also known as the “residential clean energy credit,” this credit helps out when installing solar energy systems—like solar water heaters and solar panels—and you can recoup up to 30% of the installation costs.4
- Energy Efficient Home Improvement Tax Credit: If you buy energy-efficient windows, doors, or heat pumps, you can get up to $3,200 back on those investments.4
💰 Retirement and Savings Deductions
- IRA Contribution Deduction: You may be able to deduct IRA contributions from your taxes, but it depends on how much you earn and whether you’re part of your job’s retirement plan. Learn more.
- 401(k) Contribution Deduction: If you take income directly from your paycheck and put it into a traditional 401(k), the IRS doesn’t tax this income. In 2025, the maximum contribution limit is $23,500 with an extra $7,500 for those ages 50+.
- Saver’s Credit: Also known as the Retirement Savings Contribution Credit, this is for mid-and-low-income earners who put income into a retirement account. This credit is worth $1,000 if filing individually or $2,000 if married and filing together.
- Health Savings Account Contributions Deduction: Contributing to your HSA is tax-deductible—up to $4,300 for individuals and $8,550 for families in 2025.
Income and Other Deductions
- Charitable Donation Deduction: If you made any charitable donations, you can generally deduct up to 50% of your adjusted gross income.
- Medical Expenses Deduction: If you paid for any medical expenses out of pocket, you can claim up to 7.5% of your adjusted annual gross income.
- Deduction for State & Local Taxes: You may be able to deduct state and local income taxes withheld from your wages.
Self-Employed: Ways to Maximize Your Tax Refund
If you are self-employed, you may qualify for even more tax breaks. Some common self-employed deductions include:
- Home Office Deduction
- Mileage or Actual Vehicle Expenses
- Health Insurance Premiums
- Office Supplies and Equipment
- Phone and Internet Costs
- Advertising and Marketing
- Continuing Education
- Business Travel and Meals
- Startup Costs
- Solo 401(k) Contributions
- Qualified Business Income (QBI) Deduction
Tracking these expenses carefully can dramatically reduce your taxable income and help maximize your tax refund.
Tips to Help Get Your Tax Return Faster
You’ve identified the deductions and credits to take, so it makes sense you’re eager for your tax refund to hit your bank account. Here are a few tips that could help you get your tax refund faster:
- File electronically for faster processing
- Wait to file until you receive all your forms
- Review thoroughly before submitting
- Fix errors quickly with amended returns
- File early to avoid delays
Happy Tax Season!
Whether you work a traditional job or are self-employed, there are hidden tax breaks to help everyone maximize their refunds. Exploring these deductions and credits can significantly reduce your tax bill, turning a routine filing into an opportunity for substantial savings.
While we highly recommend seeking professional advice to navigate the complex landscape of tax regulations effectively, we hope this guide sparks your enthusiasm for uncovering potential tax savings.
Remember, every dollar you save on taxes gives you more opportunity to maximize your tax refund—whether you save, spend or invest your refund money.. Start your tax-slashing journey today and see how much you can reclaim—it might be the financial boost you need this year!
FAQ: How to Maximize Your Tax Refund
How can I legally increase my tax refund?
Ways to legally maximize your tax refund include claiming all eligible credits, maximizing deductions, contributing to tax-advantaged accounts, and filing accurately and on time.
What gives you the biggest tax refund?
Refundable credits like the Earned Income Tax Credit, Child Tax Credit and Saver’s Credit often boost refunds the most.
Is a big refund better than adjusting your W-4?
A big refund feels nice, but adjusting your W-4 gives you more money throughout the year instead of waiting for tax season.
When should I file to get my refund faster?
File electronically as soon as you have all your documents to avoid delays and errors.
