Financial Literacy Update: Spring 2025

The Office of the Comptroller of the Currency's (OCC) Financial Literacy Update is a quarterly e-newsletter that lists events, initiatives, and other resources offered by the OCC and other government agencies and organizations. (View disclaimer)

• Spotlight – Tax Season: Consider These Tax Credits and Resources
• Upcoming Financial Literacy Events
• New Resources and Initiatives

Spotlight

Tax Season: Consider These Tax Credits and Resources 

Generally, individuals are required to file a federal tax return for tax year 2024 by April 15, 2025. The Internal Revenue Service (IRS) provides a site where people can check to see if they need to file a tax return. The IRS also has published tax relief provisions for taxpayers affected by disaster situations. For example, people and businesses impacted by the wildfires in California will have until October 15, 2025, to file their tax return and pay any federal taxes due.

Tax return forms (electronic or paper) help taxpayers calculate their adjusted gross income (AGI) to determine an individual’s or household’s tax bracket and compute the amount of taxes they owe or the amount of a refund they will receive. The AGI is the total sum of an individual’s or household’s income (depending on whether a taxpayer files jointly or individually), less certain adjustments (e.g., deductible individual retirement account and health savings account contributions). Tax return forms also instruct taxpayers how to calculate qualifying exemptions, tax credits, and other deductions.

Tax Credits

Tax credits can reduce the income tax bill, dollar-for-dollar, that a taxpayer owes. Some credits are refundable and may result in or increase a taxpayer’s refund. Some examples of tax credits that may assist individuals and families include the following:

• Adoption Credit – Families that adopt children and meet the income requirements can claim the Adoption Credit (amount varies by year). The adopted child must be under 18 years old or unable to care for themselves, among other eligibility requirements. The adoption credit is not refundable, so taxpayers cannot get back more than they owe in taxes.
• Child Tax Credit (CTC) – Taxpayers qualify for the full amount of the 2024 CTC for each qualifying child if they meet all eligibility factors and their annual income is not more than $200,000 ($400,000 if filing a joint return). There are several eligibility factors including the child being under the age of 17 and living with the taxpayer for at least one-half of the tax year. To see the full list of eligibility requirements for the CTC, visit the IRS CTC page. The CTC credit is not refundable so taxpayers cannot get back more than they owe in taxes.
• Earned Income Tax Credit (EITC) – The EITC is a refundable tax credit for eligible low- to moderate-income taxpayers. Income and family size determine the amount of the EITC received. Taxpayers can check online to see if they qualify for the EITC.
• Higher education tax credits – The American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) each provide a credit for qualified expenses paid for an eligible student to pursue a specified college-level education. The IRS provides a comparison chart for the LLC and AOTC.
  • The AOTC is a partially refundable credit (up to 40 percent of any remaining amount not to exceed $1,000 can be refunded) for qualified education expenses paid for an eligible student for the first four years of an undergraduate education.
  • The LLC is a credit for qualified tuition and related expenses for an eligible student enrolled in undergraduate, graduate, or professional degree courses—including courses to acquire or improve job skills. There is no limit on the number of years a taxpayer can claim the credit. This tax credit is not refundable, so taxpayers will not get back more than they pay in taxes.

Filing for all possible deductions and tax credits can amount to significant savings on tax payments and, if a credit is refundable, it may increase the amount of the taxpayer’s refund.

Additional Resources for Taxpayers Who Need Assistance With Filing Their Taxes

Avoiding Tax Scams – This IRS page provides tips on how to spot and avoid common tax scams and steps for individuals who were scammed.

Direct File – Taxpayers in 25 states can file their taxes directly to the IRS, online, for free.

Earned Income Tax Credit Fact Sheet – This OCC publication describes the EITC and provides examples of what national banks and federal savings associations (collectively, banks) can do to promote EITC awareness.

Free Tax Return Preparation for Qualified Individuals – The IRS's Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals.

Free Tax Services for Military Members and Veterans – This page provides information on special situations that members of the military may encounter related to federal taxes.

How to File Your Federal Tax Return – This page provides IRS guidance on how to file a tax return.

Tax Relief in Disaster Situations – This IRS page provides the current and prior years’ list of IRS disaster relief guidance for eligible localities that were given extensions or other tax relief provisions because they experienced disasters.

Upcoming Financial Literacy Events  

New Resources and Initiatives 

Academy of Financial Education
The Academy of Financial Education’s mission is to narrow the wealth gap for communities and individuals by providing activities, education, coaching, and instruction on a variety of financial literacy topics.

Digital Asset Frauds
This Commodity Futures Trading Commission (CFTC) website contains resources for market participants and customers about digital assets and the CFTC's oversight role.

NEFE Strategic Partnership Initiative: Interim Report
This research report by the National Endowment for Financial Education (NEFE) and the Appalachian College Association studies the financial habits that college students form and the decisions they make as they begin to live independently full-time.

New Infographic on Check Fraud
In partnership with the United States Postal Inspection Service, the American Bankers Association Foundation released a new infographic to help businesses detect check fraud scams.

New Infographic on Money Mules
In partnership with the United States Postal Inspection Service, the American Bankers Association Foundation released a new infographic to help individuals avoid falling victim to a money mule scam.

Personal Finance Ecosystem
The Personal Finance Ecosystem created by NEFE is a research-informed framework that describes the factors influencing an individual’s state of financial well-being.

Protect Your Money: How to Avoid Investment Scams
New and developing technologies like mobile trading apps and artificial intelligence can provide benefits to investors, but they also create opportunities for scammers. This U.S. Securities and Exchange Commission (SEC) publication describes some of the red flags of investment fraud and steps for how to avoid them.

Relationship Investment Scams—Protect Yourself
Relationship investment scams can be devastating and cause investors to lose billions of dollars each year. This SEC publication explains how consumers can protect themselves.

Resources for Nonprofit Groups Starting Pro Bono Financial Planning Programs
The Foundation for Financial Planning works with nonprofit groups to develop programs that use Certified Financial Planner (CFP) professional volunteers to provide free, high-quality financial guidance to clients. Resources such as Pro Bono Financial Planning: An Overview for Nonprofits and 7 Steps Nonprofits Can Use to Get Started can help nonprofit groups understand how CFP professionals can help their constituents.

Safe Money: Guarding Against Financial Frauds and Scams
Safe Money is a series of informational fact sheets developed by the OCC to help consumers recognize and avoid common financial frauds and scams. Consumer fraud affects millions of Americans every year and often results in financial harm. These fact sheets describe the most common types of consumer fraud, how each type works, the warning signs, and how individuals can protect themselves and others.

Veterans Benefits Banking Program
The Association of Military Banks of America and the U.S. Department of Veterans Affairs developed the Veterans Benefits Banking Program, which provides veterans with a safe, reliable, and low-cost way to receive and manage benefits by depositing funds directly into new or existing bank accounts offered by participating banks. The program offers veterans a free session of financial or credit counseling and access to financial education resources.

What to Know About Cryptocurrency and Scams
This Federal Trade Commission website explains how cryptocurrency differs from other payment methods and describes the warning signs of compromised cryptocurrency accounts.

OCC Community Affairs: Learn More

• See other OCC Community Affairs publications.
• Have a financial literacy event worth noting? Rolling out a new financial education initiative or product? Contact OCC Community Affairs.