5 Tax Credits

U.S. Tax Law Fundamentals · 3:39

Listen on 93

Lyrics

[Verse 1]
When you file your taxes every year
There are credits that can make them disappear
Not deductions that just reduce your pay
But dollar-for-dollar credits that take tax away

Child Tax Credit gives you cash back home
Two thousand dollars for each child you own
Under seventeen and living with you
Additional credit if your income's low too

[Chorus]
Tax credits pay you back, they're better than deductions
Dollar for dollar off your tax productions
Child and Earned Income, Education too
Care and Premium credits working just for you
Remember the codes, twenty-one through thirty-six
These tax credits are your money-saving tricks

[Verse 2]
Earned Income Credit helps the working poor
Section thirty-two opens up the door
The more you earn, the more credit you get
Until it phases out, but don't forget

American Opportunity for college costs
Twenty-five-A makes sure hope's not lost
Four thousand dollars per student each year
Lifetime Learning keeps your path clear

[Chorus]
Tax credits pay you back, they're better than deductions
Dollar for dollar off your tax productions
Child and Earned Income, Education too
Care and Premium credits working just for you
Remember the codes, twenty-one through thirty-six
These tax credits are your money-saving tricks

[Verse 3]
Child and Dependent Care when you work away
Section twenty-one helps you through the day
Daycare costs and summer camps count too
Up to three thousand coming back to you

Premium Tax Credit for your health insurance plan
Thirty-six-B helps every woman and man
Marketplace coverage with advance pay
Reconcile it right on filing day

[Bridge]
Clean energy credits for your solar roof
Twenty-five-D gives you money proof
Electric vehicles get their share
Thirty-D for new, twenty-five-E with care
Adoption credit, Saver's too
These credits are working hard for you

[Chorus]
Tax credits pay you back, they're better than deductions
Dollar for dollar off your tax productions
Child and Earned Income, Education too
Care and Premium credits working just for you
Remember the codes, twenty-one through thirty-six
These tax credits are your money-saving tricks

[Outro]
Nine main credits in the tax code game
Learn them well, they're worth the claim
From children's care to college dreams
Tax credits flow like money streams

← 4 Deductions — Below the Line | 6 Filing Status, Rates, and the AMT →