PaisaTax automatically finds credits and deductions you might miss. Upload your documents and the system does the rest — matching each one to the right tax form and calculating your savings in real time.
Credits vs. Deductions: The One-Sentence Version
A credit reduces your tax bill dollar-for-dollar. A deduction reduces the income that gets taxed. Credits are almost always worth more.
Tip
You do not need to know which form goes where. PaisaTax reads your documents, picks the right forms, and fills them in. This page just shows you what is possible so you know what to upload.
What PaisaTax Can Find for You
1. Child and Dependent Care (Form 2441)
What it is: A credit for paying someone to watch your kids (or a disabled dependent) while you work.
What to upload: Daycare receipts or statements showing the provider name, address, tax ID, and total paid.
How much you could save: Up to $1,050 for one child or $2,100 for two or more, depending on your income. The credit covers 20-35% of what you spent — lower income means a higher percentage.
Info
The maximum qualifying expenses are $3,000 for one child and $6,000 for two or more children. The credit percentage ranges from 20% (income above $43,000) to 35% (income below $15,000).
2. Residential Energy Credits (Form 5695)
What it is: A credit for making your home more energy-efficient — solar panels, heat pumps, insulation, energy-efficient windows, and more.
What to upload: Invoices or receipts from your contractor showing what was installed and how much it cost.
How much you could save:
- Solar panels and battery storage: 30% of the total cost with no cap. A $20,000 solar system gives you a $6,000 credit.
- Efficiency improvements (heat pumps, insulation, windows, doors): 30% of cost, up to $3,200 per year.
Tip
The solar credit has no annual limit and can be carried forward to future years if your tax bill is not large enough to use it all at once.
3. Clean Vehicle Credit (Form 8936)
What it is: A credit for buying an electric or plug-in hybrid vehicle.
What to upload: Your EV purchase agreement or bill of sale showing the vehicle identification number (VIN), purchase price, and date.
How much you could save:
- New EVs: Up to $7,500
- Used EVs: Up to $4,000
Warning
Income limits apply. For new EVs: $150,000 single / $300,000 MFJ. For used EVs: $75,000 single / $150,000 MFJ. The vehicle must also meet price caps — $55,000 for cars, $80,000 for SUVs/trucks (new), and $25,000 (used).
4. EV Charger Credit (Form 8911)
What it is: A credit for installing an electric vehicle charger at your home.
What to upload: The charger installation receipt showing equipment and labor costs.
How much you could save: 30% of the total cost, up to $1,000 for personal use.
5. HSA Deduction (Form 8889)
What it is: A deduction for money you put into a Health Savings Account. This reduces your taxable income dollar-for-dollar — every dollar you contribute is a dollar the IRS does not tax.
What to upload: Your HSA contribution statement — either Form 5498-SA (from your HSA provider) or Form 1099-SA (if you took distributions).
How much you could save:
| Coverage Type | 2025 Contribution Limit | Tax Savings (22% bracket) |
|---|---|---|
| Individual | $4,150 | Up to $913 |
| Family | $8,300 | Up to $1,826 |
Info
You must have a high-deductible health plan (HDHP) to qualify. If your employer contributed to your HSA, those amounts count toward the limit.
6. Itemized Deductions (Schedule A)
What it is: Instead of taking the standard deduction, you list out specific expenses that may add up to more.
What to upload:
- Medical bills that exceed 7.5% of your adjusted gross income
- Charitable donation receipts (cash and noncash)
- Property tax bills
- Mortgage interest statement (Form 1098)
How much you could save: Only worth itemizing if your total exceeds the standard deduction:
| Filing Status | 2025 Standard Deduction |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Head of Household | $22,500 |
Warning
State and local tax (SALT) deductions — including property taxes and state income taxes — are capped at $10,000 total. Even if you paid $25,000 in property taxes and state income taxes combined, you can only deduct $10,000.
Tip
PaisaTax automatically compares your itemized total to the standard deduction and picks whichever saves you more.
7. Education Credits (Form 8863)
What it is: Credits for college tuition and education expenses.
What to upload: Your tuition statement — Form 1098-T from your school.
How much you could save:
| Credit | Max Per Year | Who Qualifies | Refundable? |
|---|---|---|---|
| American Opportunity (AOTC) | $2,500 | First 4 years of college | 40% refundable (up to $1,000 back even if you owe $0) |
| Lifetime Learning | $2,000 | Any year, any level of education | No |
Info
You cannot claim both credits for the same student in the same year. PaisaTax picks whichever is worth more.
8. Student Loan Interest (Form 1098-E)
What it is: A deduction for interest you paid on student loans. This reduces your taxable income before your tax is calculated.
What to upload: Your student loan interest statement — Form 1098-E from your loan servicer.
How much you could save: Deduct up to $2,500 of interest paid. At a 22% tax rate, that is up to $550 in savings.
Warning
This deduction phases out at higher incomes: $80,000-$95,000 for single filers, $165,000-$195,000 for married filing jointly.
Summary: What to Upload
| Document | Credit or Deduction | Potential Savings |
|---|---|---|
| Daycare receipts | Child Care Credit (2441) | Up to $2,100 |
| Solar/energy receipts | Energy Credit (5695) | 30% of cost |
| EV purchase agreement | Clean Vehicle Credit (8936) | Up to $7,500 |
| Charger install receipt | EV Charger Credit (8911) | Up to $1,000 |
| HSA statement (5498-SA) | HSA Deduction (8889) | Up to $1,826 |
| Medical, charity, property tax, mortgage | Itemized Deductions (Sched A) | Varies |
| Tuition statement (1098-T) | Education Credits (8863) | Up to $2,500 |
| Loan interest statement (1098-E) | Student Loan Deduction | Up to $550 |
How PaisaTax Handles It
You do not need to pick forms, fill in line numbers, or figure out which credit applies. Upload what you have and PaisaTax takes care of the rest.