You can use credits and deductions to help lower your tax bill or increase your refund. Credits can reduce the amount of tax due. Deductions can reduce the amount of taxable income. Credits and deductions are available for individuals and businesses. The Inflation Reduction Act of 2022 provides new and extended credit and deductions for individuals and businesses, tax-exempt and government entities. Family, dependents and students Earned income tax credit Child tax credit Education credits Inflation Reduction Act credits and deductions Clean vehicle credits Home energy credits Elective pay and transferability Standard, retirement and contributions deductions Itemized versus standard deduction IRA deduction limits Charitable contributions All credits and deductions for individuals: Dependent care, healthcare, home expenses, work related expenses and more. Employment credits Employee retention credit—for businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic. Work opportunity tax credit—tax credit available to employers for hiring and employing individuals from certain targeted groups. Business credits Forms for business credits Business credits and deductions Opportunity zones—an economic development tool that allows people to invest in distressed areas in the United States.
