Money on the Table: The Credits and Deductions Louisville Families Miss Most

Every tax season, we sit across from families who did nothing wrong — they just never got told what they qualified for. Credits and deductions don't arrive automatically; you have to claim them, and most require a document somebody forgot to keep. Here's the money we see left on the table most often, for the tax year 2026 return you'll file in early 2027.

For 2026, the Child Tax Credit is $2,200 for each qualifying child under 17, and up to $1,700 per child can come back as a refund through the Additional Child Tax Credit even if you owe no tax. A dependent who doesn't qualify for the full credit — a 17-year-old, a parent you support — can still bring a $500 Credit for Other Dependents. Families miss this by not filing at all, or by a mismatch in a child's name or Social Security number. Bring the Social Security cards; we match everything before we file.

The EITC is the largest refundable credit for working families, and the IRS's own estimates have long said roughly one in five eligible taxpayers doesn't claim it. For tax year 2026, the maximum credit is $8,231 for a family with three or more qualifying children, with smaller amounts for one or two children — and a modest credit even for workers with no children at home. The common miss: your income was low, you figured you "didn't need to file," and the credit sat unclaimed. If you worked and earned under the limits, file. It's that simple.

If you pay someone to watch your child under 13 so you can work — daycare, after-school care, a summer day camp — you may claim a credit of 20% to 35% of up to $3,000 in expenses for one child, or $6,000 for two or more. The miss is almost always paperwork: you need the provider's name, address, and tax ID number. Get it in January, while you're still on good terms and the office is open. Money you pay a relative can count, too, with rules — ask us before you assume it doesn't.

Paying college costs for yourself, your spouse, or your child? The American Opportunity Tax Credit is worth up to $2,500 per student for the first four years of college, and up to $1,000 of it is refundable. The Lifetime Learning Credit (up to $2,000) covers courses at any stage — including job-skills classes. And student loan interest is deductible up to $2,500, even if your parents are the ones who took the loan out in some arrangements. Bring the 1098-T from the school and the 1098-E from the loan servicer.

The newest misses are the deductions created by the One, Big, Beautiful Bill Act, claimed on Schedule 1-A whether or not you itemize: up to $25,000 of qualified tips, up to $12,500 of overtime premium pay ($25,000 joint), up to $10,000 of interest on a loan for a new U.S.-assembled vehicle (you'll need the VIN), and an extra $6,000 for each taxpayer 65 or older. These expire after 2028 — every year you skip one is a year you can't get back.

Your Kentucky return starts from your federal numbers, but it has its own math: a flat 3.5% rate for 2026, a $3,360 standard deduction, and full exemption of Social Security benefits. Retirees: Kentucky also excludes a significant chunk of other retirement income — bring your 1099-Rs and let us run it rather than assuming Louisville taxes it all.

Notice what every item on this list has in common: the money is real, the rules are knowable, and the difference between claiming it and missing it is usually one document or one question asked in time. That's the whole philosophy at Do The Math Tax Pros — we've been doing this in Louisville since 2019, we're open year-round, and we'd rather spend twenty minutes finding your money in November than apologize for missing it in April.

Call (502) 835-8535 and let's look at your picture before filing season opens.

This post is general information about tax year 2026, not tax advice for your specific situation. Credit amounts are maximums; your eligibility depends on income, filing status, and family details, which we verify on your actual return.