7 Tax Credits You May Have Earned During the Holidays (Don’t Forget to Claim Them)

The holiday season is often associated with higher spending, but some of those purchases may come with tax benefits. From upgrading your home to enrolling in health insurance, certain year-end decisions can translate into valuable credits at tax time. Understanding what qualifies can help you avoid wasting money by overlooking benefits you may already qualify for. Many of these credits are tied to actions people take naturally during the holidays.

Here are some common tax credits worth reviewing before you file.

Energy-efficient home improvement credit

If you replaced windows, doors, insulation, or installed energy-efficient heating systems in an existing, primary home before year-end, you may qualify for the Energy Efficient Home Improvement Credit. This credit allows eligible homeowners to claim up to 30% of qualifying improvement costs, such as home energy efficiency improvements and home energy audits. Improvements must meet specific efficiency standards set by the IRS, and keeping documentation and receipts is important when claiming the credit.

However, after December 31, 2025, this credit is going away; the improvements must be made by or before this date in order to qualify for the credit.

New clean vehicle credit for electric or plug-in hybrids

The New Clean Vehicle Credit can be worth up to $7,500 for eligible new plug-in electric vehicles (EVs) or fuel cell vehicles (FCVs), depending on battery sourcing, assembly location, and income limits—eligibility depends on both the vehicle and the buyer.

However, as a result of the One Big Beautiful Bill (OBBB), the vehicle must have been acquired by or before September 30, 2025, to qualify for the tax credit. Anyone who acquires an EV or FCV after that date will not be eligible to claim the tax credit.

Child and dependent care credit for holiday childcare

Holiday childcare expenses may qualify for the Child and Dependent Care Credit.

To qualify, you and your spouse — if filing jointly — must have earned income, and the care must have been necessary so you could work or actively seek employment. Eligible taxpayers can claim between 20% and 35% of qualifying care expenses, capped at $3,000 for one dependent or $6,000 for two or more dependents for tax year 2025.

Adoption credit for finalized adoptions

Families who finalized an adoption during the year may qualify for the Adoption Tax Credit. The credit helps offset qualified adoption expenses, including legal fees, court costs, and travel. For tax year 2025, qualifying expenses are capped at $17,280 per qualifying child, and a portion of the credit is refundable up to $5,000.

Income phaseouts apply at higher earnings levels. Special rules apply to adoptions of children with special needs, which may allow the full credit even with lower expenses.

Education credits tied to year-end tuition payments

Paying college tuition or related expenses before the year ends may qualify you for an education credit. The American Opportunity Tax Credit (AOTC) (which is partially refundable) and the Lifetime Learning Credit (LLC) (which is non-refundable) apply to eligible students and expenses. Only one of these credits can be claimed per qualifying student.

These credits differ in value, eligibility, and refundability. Timing matters, as expenses must be paid during the tax year to count. Choosing between the two credits depends on factors such as enrollment status, degree progress, and income limits.

Saver's Credit for retirement contributions made before year-end

If you made last-minute contributions to a 401(k), IRA, or other eligible retirement account before the end of the year, you may qualify for the Saver's Credit. This credit can be worth up to $1,000 for individuals or $2,000 for married couples filing jointly.

Eligibility depends on income, filing status, and contribution amount. Unlike a deduction, this credit directly reduces your tax bill dollar-for-dollar if you qualify.

Qualifying charitable contributions made before year-end

Donations made to eligible charities before December 31 may help reduce your 2025 tax bill if you itemize deductions. Qualifying contributions generally include cash donations and certain noncash gifts to IRS-recognized nonprofit organizations.

While the higher standard deduction means fewer filers itemize, charitable giving can still provide tax value for those who do. Proper documentation, such as receipts or acknowledgment letters, is required to claim the deduction.

Why holiday spending often creates tax opportunities

Many tax credits are triggered by life events rather than deliberate tax planning. Home upgrades, family-related expenses, and education costs may happen during the holidays.

Reviewing year-end spending carefully can help ensure nothing is missed. Small, overlooked expenses can sometimes unlock credits worth hundreds or potentially even thousands of dollars.

Bottom line

Holiday spending can sometimes create unexpected tax benefits, especially when purchases align with federal credit programs. Energy upgrades, education costs, and family-related expenses should not be overlooked, since many of these may reduce your tax liability.

Taking time to review receipts, eligibility rules, and IRS guidance before filing can help you make money moves that turn last year's spending into meaningful tax savings.

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