That “tax write-off” might not save you what you think it will.

In this episode of MKE Tax Dad, Steve breaks down the difference between tax deductions and tax credits, explains refundable versus nonrefundable credits, and gives practical examples of how each one affects your return.

We also talk about the Child Tax Credit cliff when a dependent turns 17...including why this is Steve’s final year claiming the $2,200 credit for his 16-year-old daughter and whether charging her rent might make up the difference. Spoiler: her Starbucks gift cards are not legal tender.

Plus, in Ask Your Tax Dad:

• How long can you claim a child who is in college?
• Can AI do your tax return?
• Why did your tax professional put you on extension?

School is starting, summer is ending, and this is your reminder to save those daycare and day-camp records. Because the difference between a deduction and a credit can be the difference between “that helped a little” and “that changed the bill.”

Have a question for Ask Your Tax Dad? Email steve@mketax.com or send a message on Instagram @mketaxdad.

Taxes. Coffee. Dad jokes. Actual answers.

MKE Tax Dad provides general tax education and entertainment, not individualized tax advice. Rules and dollar limits discussed are based on 2026 federal tax law and may change.