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7 Employer Benefits and Tax Credits Worth Thousands (That Most People Miss)
July 1, 2025
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Nearly 3 in 10 workers leave their employer's full 401(k) match unclaimed, according to recent data from Empower. That's just one example of how thousands of dollars slip through the cracks each year—not because people don't qualify, but because they never opt in.
From workplace benefits to tax credits to credit card rewards, free money sits waiting to be claimed. The catch? You have to actively pursue it. Here's where to look and how to maximize what you're entitled to.
1. Maximize Your Health Savings Account (HSA) Contributions
What it is: If you have a high-deductible health plan, an HSA lets you save pretax dollars for medical expenses while growing your money tax-free.
Why it matters: HSAs offer a triple tax advantage—tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. Many employers contribute to your HSA, adding free money on top of your own contributions.
How to claim it:
- Enroll through your employer's benefits portal during open enrollment
- Contribute up to the annual IRS limit (adjusted yearly for inflation)
- Use funds for qualified medical expense,s including copays, prescriptions, and medical equipment
- Roll over unused funds year after year—there's no "use it or lose it" rule
Pro tip: Unlike flexible spending accounts, HSA funds can be invested in stocks, bonds, and other assets, making them powerful long-term savings vehicles.
2. Use Your Flexible Spending Account (FSA) Before Year-End
What it is: An FSA allows you to set aside pretax dollars for healthcare and dependent care expenses throughout the year.
Why it matters: FSA contributions lower your taxable income, and your employer may contribute additional funds to your account. However, most FSA plans require you to use funds within the plan year or lose them.
How to claim it:
- Calculate your expected healthcare costs for the year
- Enroll during open enrollment and set your contribution amount
- Track your spending throughout the year to avoid forfeiting unused funds
- Submit reimbursement claims for qualified expenses before the deadline
Important: Check whether your employer offers a grace period or allows a small carryover amount—some plans do provide limited flexibility.
3. Capture Your Full 401(k) Employer Match
What it is: Many employers match your 401(k) contributions up to a certain percentage of your salary. If you contribute 3% and your employer matches 3%, that's an instant 100% return on your investment.
Why it matters: Employer matching is literally free money. Yet nearly 30% of workers don't contribute enough to capture their full match, leaving thousands on the table annually.
How to claim it:
- Review your employer's matching formula (often 50-100% of contributions up to 3-6% of salary)
- Contribute at least enough to max out the match
- Aim for a total savings rate of 15%, including your employer's contribution
- Increase your contribution percentage during raises or bonuses
Example: On a $60,000 salary with a 5% match, contributing the full 5% means your employer adds $3,000 annually—$30,000 over 10 years before any investment growth.
4. Evaluate Your Employee Stock Purchase Plan (ESPP)
What it is: An ESPP allows you to purchase company stock at a discount, typically 5-15% below market price. Some plans include a "lookback" feature that applies the discount to whichever stock price was lower—at the beginning or end of the offering period.
Why it matters: Even a 10% discount represents an immediate return on investment. Combined with potential stock appreciation, ESPPs can be valuable wealth-building tools.
How to claim it:
- Enroll during your company's offering period
- Set your payroll deduction percentage (typically 1-15% of pay)
- Review holding period requirements to optimize tax treatment
- Diversify by selling shares and investing proceeds elsewhere to avoid overconcentration
Caution: Always diversify beyond company stock to protect against company-specific risk.
5. Discover Hidden Workplace Perks
What they are: Beyond the standard benefits package, many employers offer underutilized perks that can save you hundreds or thousands annually.
Common overlooked benefits:
- Tuition reimbursement and professional development stipends for courses, certifications, and conferences
- Commuter benefits covering public transit, parking, or rideshare services
- Wellness programs, including gym membership reimbursements, mental health resources, and healthy meal stipends
- Employee assistance programs (EAPs) provide free counseling, legal advice, and financial planning services
How to claim them:
- Review your complete benefits package annually
- Ask HR about perks that require separate enrollment
- Set calendar reminders for benefits that expire or require annual reapplication
- Check for family benefits—some programs extend to spouses and dependents
6. Claim Every Tax Credit You Qualify For
What they are: Unlike tax deductions that reduce taxable income, tax credits directly reduce the amount of tax you owe—dollar for dollar.
Commonly missed credits:
- Earned Income Tax Credit (EITC): For low to moderate-income workers and families, potentially worth thousands
- Saver's Credit: Up to $1,000 ($2,000 for married couples) for contributing to retirement accounts
- Child Tax Credit: Up to $2,000 per qualifying child
- Child and Dependent Care Credit: Covers a percentage of childcare costs for working parents
- Residential Energy Credits: For energy-efficient home improvements like solar panels, heat pumps, and insulation
- Education Credits: American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for tuition and education expenses
How to claim them:
- Review IRS eligibility requirements for each credit
- Maintain documentation of qualifying expenses
- Use tax software that identifies credits based on your situation
- Consider consulting a tax professional to ensure you're not missing anything
- File your taxes even if your income is low—you may qualify for refundable credits
7. Maximize Credit Card Rewards (The Smart Way)
What it is: Rewards credit cards return a percentage of your spending as cash back, points, or miles. The best cards offer 1.5-5% back on purchases you're making anyway.
Why it matters: On annual spending of $30,000, a 2% cash-back card returns $600—year after year. Sign-up bonuses can add several hundred dollars more in the first year.
How traditional rewards programs fall short:
Most credit card users face three major challenges when trying to maximize rewards:
- Tracking which card offers the best rewards for each purchase becomes overwhelming when you carry multiple cards
- Missing out on rotating category bonuses and limited-time offers because you can't keep up with constantly changing promotions
- Leaving rewards on the table by using a flat-rate card when a category-specific card would earn 3-5x more
How Kudos Solves the Rewards Problem
Kudos is an AI-powered browser extension and mobile app that automatically identifies which credit card in your wallet earns the highest rewards for every purchase.
Here's how Kudos helps you claim more free money:
- Real-time card recommendations: Before you check out online or in-store, Kudos analyzes your cards and shows you which one maximizes rewards for that specific merchant and purchase category.
- Boost opportunities: Kudos highlights limited-time offers where you can earn elevated cashback rates—sometimes 5-15% back at popular retailers, travel sites, and restaurants. These Boosts turn ordinary purchases into significant savings.
- Automatic tracking: No need to remember rotating quarterly categories or special promotions. Kudos monitors all your cards' programs and alerts you to the best earning opportunities.
- Intelligent optimization: Whether you're booking travel, ordering groceries, or shopping for electronics, Kudos ensures you're always using your highest-earning card for that transaction.
Example: You're booking a hotel for $800. Without Kudos, you might use your 2% flat-rate card, earning $16. Kudos identifies that your travel card offers 5x points (worth 5%) on hotel bookings, earning you $40 instead—a $24 difference on one transaction.
Best Practices for Credit Card Rewards
Regardless of how you manage your cards, follow these rules:
- Pay your balance in full every month to avoid interest charges that erase your rewards
- Choose cards aligned with your spending patterns (travel, dining, groceries, etc.)
- Set up autopay to ensure you never miss a payment
- Track annual fees and ensure your rewards exceed the fee
- Take advantage of sign-up bonuses by timing applications with planned large purchases
- Use tools like Kudos to ensure you're always earning maximum rewards without the mental overhead
The bottom line on rewards: A 2% cashback card is great. A 5% category card is better. But using the wrong card means leaving money on the table with every swipe. Kudos ensures you're always making the optimal choice.
Start Claiming What's Yours
Free money isn't hidden because it's secret—it's hidden because it requires action. Review your workplace benefits, check your tax credit eligibility, optimize your retirement contributions, and make sure every dollar you spend earns you the best possible rewards.
Quick action checklist:
- ✓ Verify you're contributing enough to capture your full 401(k) match
- ✓ Enroll in your HSA or FSA during the next open enrollment period
- ✓ Review hidden workplace perks with HR
- ✓ Check your eligibility for overlooked tax credits
- ✓ Evaluate your ESPP participation
- ✓ Optimize your credit card rewards strategy (consider Kudos for automatic optimization)
The common thread across all seven sources: you have to opt in. The money is there, waiting. Don't leave it unclaimed.
Ready to maximize your credit card rewards? Download Kudos and let AI handle the work of choosing the right card every time you shop.
Unlock your extra benefits when you become a Kudos member
Turn your online shopping into even more rewards
Join over 400,000 members simplifying their finances
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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