How To Maximize Your Tax Refund in 2026

You can maximize your tax refund in 2026 by claiming tax credits, lowering your taxable income and watching for errors as you're filing. Tax refunds come from overpaying your taxes during the year or qualifying for refundable credits. A bigger refund isn’t always better, but here’s how to make sure you don’t leave money behind.

How Tax Refunds Work

During the year, money is withheld from your paycheck for your federal taxes. Your tax refund equals the taxes you paid minus the actual taxes you owed.

Refundable credits can also generate money back, increasing the amount of your tax refund. Nonrefundable credits will only reduce the amount of taxes you owe.

Claim Tax Credits That Increase Your Refund

You may be able to claim numerous tax credits that increase your tax refund.

Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is a refundable tax credit designed for working individuals and families. Low- to moderate-income individuals and families generally qualify. The EITC credit is higher if individuals or families have one or more qualifying children, but you may still receive a credit if you don’t have children.

People miss claiming he EITC because they’re not aware that they’re eligible. That’s particularly common among taxpayers who don’t have children – they sometimes assume that the credit is only available to people with qualifying children.

Child Tax Credit

The Child Tax Credit is a non-refundable credit that may help reduce your tax liability. The Additional Child Tax Credit, which is a refundable part of the Child Tax Credit, allows you to get a tax refund if your Child Tax Credit exceeds the taxes you owe.

According to the IRS, to get the full Child Tax Credit amount for each qualifying child, an individual’s income can’t exceed $200,000, but those with higher incomes may get a partial credit. The Interactive Tax Assistant tool can help you determine if you’re eligible for the Child Tax Credit.

Education Credits

During your first four years of higher education, you may get an annual credit of up to $2,500 on qualified education expenses with the American Opportunity Tax Credit. The credit is partially refundable, and if it brings your owed taxes to zero, you can receive up to 40% of the remaining credit as a refund.

The Lifetime Learning Credit is a nonrefundable credit that applies to tuition and fees for post-secondary education. You must attend a qualifying institution to receive the credit of up to $2,000 per tax return.

Energy and Home Improvement Credits

The IRS offers energy and home improvement credits for qualified energy-efficient improvements that you make to your home. You can claim this non-refundable credit for 30% of qualified improvements that you make through Dec. 31, 2025.

Tax credits can change annually, so be sure to check your eligibility each year. If you’re not sure which credits you qualify for, consider using tax software or consulting a tax preparation professional.

2. Lower Your Taxable Income Before the Deadline

You can also strategically lower your taxable income to maximize your refund.

Contribute to a Traditional IRA

Contributions to a traditional IRA are generally tax-deductible, so consider maximizing your IRA contributions to lower your taxable income. You can usually make contributions up to the tax filing deadline. Your contributions made up until April 15, 2026 can count toward your 2025 contributions.

Fund an HSA

Funding a Health Savings Account (HSA) can triple your tax advantages. Your HSA contributions are tax-deductible, which lowers your adjusted gross income. Any investment growth your account sees is also tax-deferred. Plus, when you withdraw funds for qualified medical expenses, those withdrawals are tax-free.

Maximize Self-Employed Deductions

If you’re self-employed, look for ways to manage your deductions. If you have a home office and use the space exclusively for your business, you can deduct expenses from your taxable income. You can also track and deduct mileage when you travel for business. Other business expenses, like a laptop, phone, internet service and more may also be deductible.

All of those deductions can lower your taxable income, but it’s important to accurately track and record them. Consider consulting a tax professional to help you identify and track allowable deductions.

Avoid Mistakes That Shrink Your Refund

It’s important to be accurate when you file your taxes. Several common mistakes can actually shrink your refund, and you might have to amend your tax return, delaying your refund:

• Filing under the wrong status

• Missing eligible dependents

• Forgetting side incomes (1099s)

• Not claiming smaller credits

• Errors in bank info (refund delays)

When preparing to file your taxes, take your time, get your documents organized and make sure you understand the questions you’re responding to. If you aren't sure, consider using a guided online tax preparation program or hiring a tax professional. These options might cost a little extra, but they could keep you from making an expensive mistake.

Should You Aim for a Bigger Refund?

Getting a bigger refund isn’t always a good thing. If you’re getting a lot of money back, that means you gave the IRS an interest-free loan during the year. Instead of lending that money to the IRS, it could have generated interest for you if you’d kept it and put it in a high-interest savings account.

If you’re receiving a large refund but want more take-home pay, adjust your W-4. Use the IRS tax withholding estimator tool to see how your refund is affected by your withholding amount, and then adjust your withholding so it works for you.

While you don’t want to owe the IRS money at tax time, changing your withholding can give you access to more cash during the year. Choose what works best for your cash flow.

FAQs

How can I get the biggest tax refund?

To maximize your tax refund, reduce your taxable income, claim any tax credits you’re eligible for, lower your taxable income, and avoid any mistakes that could shrink your refund.

What increases a tax refund the most?

Strategies like maximizing your tax-deductible contributions, such as retirement account and HSA contributions, can significantly reduce your taxable income and increase your refund. Ensuring that you claim any tax credits you qualify for is another solid strategy that can increase your refund.

Is it better to owe or get a refund?

If you owe taxes you might also owe penalties and fees, so it’s better to get a refund than it is to owe. However, if your refund is large, you’ve given the IRS an interest-free loan, so adjust your withholding to minimize the size of your refund.

Sources:

• IRS. "Child Tax Credit."

• IRS. "Does my child/dependent qualify for the child tax credit or the credit for other dependents?"

• IRS. "Energy Efficient Home Improvement Credit."