There are multiple tax relief programs available through the IRS that could reduce your tax burden, including credits, deductions, payment plans and negotiated settlements.
Wondering if you qualify? You can check what tax relief you qualify for directly on the IRS website or by reviewing your notices from the IRS. If you have a complex situation, you may choose to work with a tax professional or tax relief company for help with navigating your options.
Here's what you need to know about qualifying for and receiving tax relief, including some of the most common credits and deductions.
What qualifies as tax relief?
Tax relief refers to a variety of ways you can lower your tax bill or make paying your taxes more manageable. Some lower your tax bill, like credits and deductions,
while others help you manage unpaid taxes, like payment installment plans or negotiated settlements.
"Tax relief refers to legitimate programs and strategies that help reduce a taxpayer's burden to the IRS," explains Josh Katz, a CPA and founder of Universal Tax Professionals.
Whether you're filing a standard tax return or working to resolve back taxes, knowing what tax relief you're eligible for can help reduce the amount you owe.
How to check what tax relief you qualify for
There are several ways to check what tax relief you qualify for:
- Head to the IRS website: Visit IRS.gov for guides on tax relief programs and calculator tools like the tax withholding estimator and sales tax deduction calculator.
- Review your notices from the IRS: Read over notices you've received from the IRS that may contain information about tax relief or instructions for requesting help.
- Speak with a tax professional: Consult a certified tax professional or tax relief company to learn about tax relief and assess your individual situation.
Connect with a tax relief professional
Common types of tax relief you may be eligible for
From tax deductions to credits to payment plans, there are various forms of tax relief you may qualify for.
Here's a closer look at your options:
Tax credits
Tax credits directly reduce the amount of tax you owe and are applied dollar for dollar against your tax bill. Some common tax credits include:
- Earned Income Tax Credit: This tax credit is designed for low- to moderate-income families and is based on your income, filing status and number of qualifying children. The maximum amount for the 2025 tax year is $8,046 for families with three children.
- Child Tax Credit: If you have one or more kids who are 17 or younger, you could get a tax credit of up to $2,000 per child. The full amount of the Child Tax Credit starts phasing out if your income exceeds $200,000 as a single taxpayer or $400,000 if filing jointly.
- American Opportunity Tax Credit: If you paid college expenses for an eligible student over the year, you may qualify for a tax credit up to $2,500. The full amount starts to phase out after incomes of $80,000 for single filers and $160,000 for married filing jointly.
Some tax credits are refundable, meaning they can result in a tax refund if they lower your tax bill below zero. Others are nonrefundable — if they reduce the amount you owe below zero, you won't get a refund for the excess amount.
Tax deductions
Tax deductions lower your income tax by reducing your taxable income. You can either take the standard deduction or itemize your deductions, meaning you deduct individual qualifying expenses.
For 2025, the standard deduction is $15,750 for single taxpayers and $31,500 for married couples who file jointly. If you choose to itemize, you can deduct expenses like mortgage interest, charitable donations and out-of-pocket medical costs that exceed 7.5% of your adjusted gross income.
Most people use the standard deduction, but you should go with whichever option lowers your taxable income more.
IRS penalty relief
Penalty relief can waive or reduce fees you owe on unpaid taxes. You have to request it and generally must show you were prevented from paying due to circumstances beyond your control, such as a natural disaster or illness. The IRS may also offer a first-time abatement to taxpayers who haven't had any penalties in the past three years.
IRS payment plans
If you're facing a high tax bill, you may arrange to pay it off in installments. If you owe less than $100,000 in taxes, penalties and interest, you can apply for a short-term payment plan up to 180 days. If you owe less than $50,000 in taxes, penalties and interest, you can request a long-term payment plan up to six years.
A payment plan can help you avoid collections like wage garnishment or bank account levies, but you'll have to pay interest and fees until you've paid off what you owe.
Offer in Compromise
If you owe more than you can afford, you may be able to negotiate a settlement for a reduced amount with the IRS, called an Offer in Compromise. This partial tax forgiveness option is designed for taxpayers who are facing financial hardship, but approval isn't guaranteed. The IRS will evaluate your income, assets, expenses and overall ability to pay before deciding whether to grant your settlement request.
How the IRS determines eligibility
The IRS determines your eligibility for tax relief based on several factors:
- Income: Most tax credits and deductions phase out or disappear above certain income levels. The IRS also considers your income if you're requesting certain types of relief, like Offers in Compromise.
- Filing status: Whether you're a single filer, head of household or married filing jointly influences your eligibility and the amount of tax relief you can receive.
- Financial hardship: The IRS considers your financial situation if you request a payment plan or similar type of relief.
- Compliance history: Your prior tax payments may also influence what tax relief you're eligible for.
- Type of tax owed: The type of tax you owe, such as income tax or payroll tax, could impact what relief measures are available to you.
Tax relief for specific situations
Your individual situation may affect your tax relief options. Here are a few examples.
Self-employed and freelancers
If you're self-employed or freelance, you have to pay your own estimated taxes on a quarterly basis. If you pay too little, you could get charged a penalty. Keeping a solid record of your income and expenses is crucial if you need to request a payment plan or a similar type of tax relief. You also want to keep records of any deductions you take for business expenses or your home office.
Financial hardship
If you experience financial hardship due to job loss, medical expenses or another emergency, you may qualify for relief like a payment plan or reduced settlement. The IRS reviews your financial hardship when determining your eligibility for these kinds of tax relief.
Seniors and retirees
Seniors and retirees will have extra considerations when filing their taxes, including Social Security benefits and retirement account withdrawals. The IRS may consider all your sources of income if you request hardship-based tax relief.
When professional tax relief may make sense
The IRS provides tax relief options to everyone who qualifies, but understanding the ins and outs can be overwhelming, especially if you have a complex situation. If you'd like additional support, a tax relief company could offer assistance.
"Professional help becomes crucial when you receive an IRS notice you don't understand, face collection actions like liens or levies, have unfiled tax returns or owe a significant amount, often over $10,000, that you cannot pay," says Katz.
Tax relief companies can help you navigate your tax relief options and negotiate with the IRS on your behalf. Some companies that operate in this space include Optima Tax Relief, Anthem Tax Services, Alleviate Tax, BC Tax and Priority Tax Relief.
"A reputable firm provides expertise in IRS negotiation," says Katz. "It [can help] if you feel overwhelmed, lack the time to navigate IRS processes or need representation in dealing with the agency," says Katz.
Be cautious with tax relief claims
If you're considering hiring a tax relief service, be wary of overblown promises for tax relief.
"The industry has bad actors who charge high upfront fees for empty promises," warns Katz. "Avoid any company that guarantees a specific result or demands a large fee before reviewing your case."
Be on the lookout for tax relief scams, as well. Unsolicited calls, texts or social media messages could be scammers looking to steal your money or identity. The IRS primarily contacts taxpayers via official letters in the mail.
"Seek help from an enrolled agent, CPA or tax attorney with a proven track record, and always check their credentials and reviews," recommends Katz.
Bottom line
The IRS offers various tax relief measures to make paying your taxes more manageable, but eligibility is personal and situational. Whether you qualify often depends on factors like your income, family size and tax history. By learning what tax relief options are available to you, you can make informed decisions about your individual situation and potentially reduce your tax bill.
FAQs about tax relief eligibility
Does tax relief mean my tax debt will be forgiven?
No, tax relief doesn’t automatically mean your tax will be forgiven. Tax relief actually refers to various programs from the IRS that can reduce your tax liability, including credits, deductions and penalty abatement. You may qualify for partial tax forgiveness if you negotiate an Offer in Compromise, which lets you settle your tax debt for less than you owe.
Can self-employed or freelance workers qualify for tax relief?
Self-employed and freelance workers can qualify for various types of tax relief, including tax credits, deductions and payment plans. Some tax relief options are specifically designed for self-employed workers, such as the qualified business income deduction and home office deduction.
Should I contact the IRS directly or work with a tax relief company?
You can contact the IRS directly for free about your tax relief options, or hire a reputable tax relief company for a fee. A tax relief company can help you navigate your options and negotiate on your behalf, which could be helpful for complex tax situations. However, there are no guaranteed outcomes; the IRS always makes final approvals.
Who qualifies for IRS tax relief?
What tax relief you qualify for through the IRS depends on the program. Every tax credit, tax deduction and penalty relief program has its own requirements based on income, filing status, financial hardship, compliance history and type of tax owed. You can communicate with the IRS directly or work with a tax professional to see exactly what you qualify for.
This article originally appeared on USA TODAY: Do you qualify for IRS tax relief? Here's how to check
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