If you’re planning to claim the standard deduction when you file your 2025 tax return in 2026, take a moment to review 10 tax breaks available to middle-class taxpayers and their families.

1. Child Tax Credit (CTC)

If you cared for dependents in 2025, then you may be eligible for the Child Tax Credit (CTC), which is worth up to $2,200 per qualifying child (with up to $1,700 of that being refundable). In order to be considered a qualifying dependent, children must have lived with you for more than half the tax year and be under the age of 17 by the end of the year. This credit does start to phase out if your taxable income is $200,000 filing single/$400,000 married, filing jointly, or more.

2. Family Tax Credit

If your family has dependents that don’t necessarily qualify for the CTC, you may still want to look into the family tax credit. This credit allows taxpayers to claim up to $500 for each dependent, including adult dependents, for those with an income below $200,000 (for single filers) and $400,000 (for joint filers).

3. Adoption Credit

If you adopted a child in 2025, you may also be eligible for the adoption credit. This credit allows families to offset some of the costs related to adopting a child, offering a maximum credit of $17,280 for each eligible child and partially refundable up to $5,000. This amount is adjusted for inflation each year and is available to families earning less than $299,190 per year.

4. Child and Dependent Care Credit

Did you have childcare expenses in 2025? If so, then you may be able to claim the child and dependent care credit, which is designed to help offset some of the costs related to securing childcare while a parent is working or actively looking for work. Under this credit, families can claim up to $3,000 per child or $6,000 for two or more children of eligible expenses, for a 20% – 30% credit of those eligible expenses.

5. Lifetime Learning Credit

If you returned to school to pursue additional skills in 2025, you might be eligible for the Lifetime Learning Credit (LLC), which allows you to claim up to $2,000 per tax return (or 20% of $10,000 of qualified education expenses). Some examples of qualified expenses include books, tuition and applicable fees (such as registration or enrollment fees). This credit phases out for those earning $80,000 – $90,000 filing single, $160,000 – $180,000 married, filing jointly.

6. American Opportunity Tax Credit

Another education credit you should be aware of if you (or any dependents) attended college in 2025 is the American Opportunity Tax Credit (AOTC). The AOTC is worth up to $2,500 per eligible student (100% of the first $2,000 of qualified expenses plus 25% of the next $2,000) and up to $1,000 may be refundable. Credit eligibility phases out at $80,000 – $90,00 filing single and $160,000 – $180,000 married, filing jointly. Unlike the Lifetime Learning Credit, however, the AOTC can only be claimed during a student’s first four years of higher education.

7. Tip Income Deduction

If you work in a job where you regularly receive tips, then you should be aware of recent changes to taxes under the One Big Beautiful Bill Act (OBBBA). Specifically, OBBBA allows for a deduction of qualified tips from taxable income for the tax years 2025 through 2028, allowing taxpayers to claim up to $25,000 of tips each tax year. Qualified tips are defined as voluntary customer tips in occupations that customarily receive tips. Mandatory service charges don’t qualify. It’s important to note that these tipped wages may still be subject to other taxes (like payroll and state income tax) and does not reduce Social Security and Medicare responsibilities. Phase out for this credit starts at $150,000 filing single and $300,000 married, filing jointly.

8. Overtime Income Deduction

Like tipped income, OBBBA has also created new rules when it comes to taxation on overtime income. Specifically, for many taxpayers receiving overtime wages, a temporary deduction will be available through 2028 that allows taxpayers to claim up to $12,500 (single) (or $25,000 for joint filers) in overtime income. This deduction only applies to the “premium” portion over the regular rate. This tax benefit is available to single filers with an income of less than $150,000 and jointly filing couples with an income of less than $300,000. This deduction applies even with the standard deduction.

9. Student Loan Interest Deduction

If you paid interest on any student loans in 2025, be sure to claim this amount as a deduction on your taxes, assuming you meet certain qualification limits. Specifically, taxpayers can deduct up to $2,500 in student loan interest — although this amount is phased out for taxpayers who make more than $85,000 per year (or $170,000 for those filing jointly). This deduction applies even with the standard deduction.

10. Car Loan Interest Deduction

You may also be eligible for a deduction if you paid interest on a car loan in 2025. Specifically, the car loan interest deduction introduced by OBBBA is worth up to $10,000, but the vehicle must be new, primarily for your personal use, and final assembly must be in the U.S. You will need your vehicle’s VIN number. Amounts are phased out for those with an income of more than $100,000 (or $200,000 for those filing jointly). This deduction applies even with the standard deduction.

Ready to Maximize Your Tax Savings?

Navigating the ins and outs of tax credits, deductions and other benefits can be complicated. The Corrigan Krause Tax Team is here to help you navigate any individual tax credit opportunities you might be eligible for. Click here to request more information about becoming a Corrigan Krause client and sign up for our newsletters.