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With time left before the April filing deadline, it makes good financial sense to recheck for don't miss deductions and credits that can lower your tax bill. One caveat: You will have to choose between taking the standard deduction and itemizing individual deductions.
BIG BREAKS
One big break is the adoption tax credit, which is up to $14,080 in tax year 2019 for qualified expenses. It increases to $14,300 for tax year 2020. Another significant break for families with children who qualify by income is the earned income credit, which is up to $6,557 in tax year 2019 (rising to $6,660 for tax year 2020). Remember that you subtract credits from your tax liability while you subtract deductions from your taxable income.
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SMALLER SUMS
Don't forget that qualified education expenses can also help reduce your taxes. Joint filers can take up to a $2,000 lifetime Learning Credit (20% of up to $10,000 of costs) or up to a $2,500 American Opportunity Tax Credit if they qualify by income. You can't claim both. You may also be able to deduct up to $2,500 of student loan interest, subject to income qualifications.
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