New Tax Credits for 2026: How Families Can Save Thousands

February 5, 2026 • Giveaways

New Haven, CT – If you're filing taxes for 2025 income this year, there's some good news: several tax credits have been expanded or updated, and families across New Haven could save thousands of dollars. The changes stem from legislation passed in July 2025, and they're designed to put more money back in your pocket.

Here's what you need to know to maximize your refund this tax season.

The Child Tax Credit Just Got Better!

The Child Tax Credit (CTC) remains one of the most valuable credits for families. For 2026 tax returns, you can claim $2,200 per qualifying child: and here's the best part: up to $1,700 of that amount is refundable.

What does "refundable" mean? Even if you owe zero federal income tax, you can still receive up to $1,700 per child as a direct refund. That's real money coming back to you.

Income Requirements:

Single filers with modified adjusted gross income (MAGI) under $200,000 qualify for the full credit
Married couples filing jointly must have MAGI under $400,000
Partial credits may be available for families with higher incomes

Who Qualifies as a Child?

Your child must meet these requirements:

Be under age 17 at the end of 2025
Have a valid Social Security number
Be claimed as your dependent
Live with you for more than half the year

The Additional Child Tax Credit: Extra Help for Lower-Income Families

If you have little to no federal income tax liability, the Additional Child Tax Credit (ACTC) can provide up to $1,700 per child. This is especially valuable for working families who earn modest incomes.

Key requirement: You must have earned at least $2,500 in 2025 to qualify for the ACTC. This includes wages, salaries, tips, and self-employment income.

Many New Haven families miss this credit simply because they don't know it exists. At Jose's Tax Service, we make sure every eligible family receives every dollar they're entitled to: no exceptions.

Earned Income Tax Credit: Up to $8,046 Available

The Earned Income Tax Credit (EITC) is one of the most powerful credits available, yet it's also one of the most commonly overlooked. For 2026, eligible families can receive up to $8,046 depending on their income and number of children.

Important Facts:

You don't need children to qualify (though having children increases the credit amount)
Your adjusted gross income must be $68,675 or less
The credit phases out as income increases
Both earned income and AGI must fall below certain thresholds

Approximate Maximum Credit Amounts:

No children: $632
One child: $4,213
Two children: $6,960
Three or more children: $8,046

The EITC calculation is complex, which is why working with an experienced tax preparer makes such a difference. We've helped countless New Haven families claim thousands in EITC funds they would have otherwise missed.

Child and Dependent Care Credit: A Major Upgrade for 2026!

Here's where things get really exciting. Starting with your 2026 tax return, the Child and Dependent Care Credit has been significantly improved. You can now claim up to 50% of eligible childcare expenses: a substantial increase from previous years.

Maximum Eligible Expenses:

$3,000 for one qualifying person
$6,000 for two or more qualifying people

This means you could potentially receive up to $1,500 for one child or $3,000 for two or more children in care-related expenses.

Qualifying Expenses Include:

Daycare and preschool costs
Before and after-school care
Summer day camps (not overnight camps)
In-home care providers
Babysitters while you work or look for work

Critical Requirements:

The care must be necessary for you to work or actively look for work
You must report the care provider's name, address, and tax identification number on your return
Care for children age 13 or older generally doesn't qualify (unless they're disabled)

Adoption Credit: Support for Growing Families

Families who adopted in 2025 can claim an adoption credit of up to $17,280 per child to cover qualified adoption expenses. Even better, up to $5,000 of this amount is refundable.

Qualified Expenses Include:

Adoption fees
Attorney fees
Court costs
Travel expenses (including meals and lodging)

This credit applies to both domestic and international adoptions, though special rules apply to each type.

Don't Forget These Other Valuable Credits

Beyond the major family credits, several other opportunities can boost your refund:

Education Credits:

American Opportunity Tax Credit: Up to $2,500 per eligible student
Lifetime Learning Credit: Up to $2,000 per tax return

Energy Credits:

Residential Clean Energy Credit for solar panels, wind turbines, and geothermal systems
Energy Efficient Home Improvement Credit for qualified upgrades

Retirement Savings Credit:

Up to $1,000 ($2,000 for married couples) for contributions to retirement accounts

Common Mistakes That Cost Families Thousands

Every tax season, we see New Haven families make the same costly errors:

Not claiming all eligible dependents – Make sure you're claiming every qualifying child and dependent
Missing documentation – Keep receipts and records for childcare, medical expenses, and charitable donations
Incorrect income calculations – One small math error can disqualify you from credits
Filing status errors – Your filing status significantly impacts credit eligibility
Not understanding refundable vs. non-refundable credits – This distinction matters tremendously

Take Action Now: How Jose's Tax Service Can Help

Tax laws change constantly, and keeping up with every credit, deduction, and requirement is nearly impossible for the average person. That's where we come in.

At Jose's Tax Service, we specialize in maximizing refunds for New Haven families. Our personalized approach means we take time to understand your unique situation, ask the right questions, and ensure you receive every credit you deserve.

Here's what makes us different:

Thorough review of your entire financial situation
Proactive communication about credits you might qualify for
Year-round support – we're not just here during tax season
Virtual and in-person options to fit your schedule
Experienced professionals who stay current on every tax law change

Don't leave money on the table this tax season. The new and expanded credits for 2026 represent a significant opportunity for families to reduce their tax burden and increase their refunds.

Schedule your appointment today and let us help you navigate these valuable credits. Whether you have young children in daycare, adopted a child last year, or simply want to ensure you're claiming everything available to you, we're here to help.

Your family works hard for every dollar. Make sure you keep as much as possible when tax time rolls around. Call Jose's Tax Service or visit us online at josestaxservice.com to get started.

Remember: The deadline to file your 2025 tax return is April 15, 2026. Don't wait until the last minute: the sooner you file, the sooner you'll receive your refund.