Taxpayers who have dependents who are not eligible for the child tax credit may have the option to claim the credit for other dependents. Optima Tax Relief reviews what taxpayers will need to be aware of before claiming a credit for other dependents.
The maximum credit amount that the IRS can offer is $500 for each dependent that meets the required conditions. These include:
- Dependents who are age 17 or older.
- Dependents who have individual taxpayer identification numbers.
- Dependent parents or other qualifying relatives supported by the taxpayer.
- Dependents living with the taxpayer who is not related to the taxpayer.
This credit will begin to phase out when a taxpayer’s income is more than $200,000. The phase-out will begin for married couples filing a joint tax return at $400,000.
A taxpayer is eligible to claim this credit if they meet the following criteria:
- They claim the person as a dependent on the taxpayer’s return.
- They cannot use the dependent to claim the child tax credit or additional child tax credit.
- The dependent is a U.S. citizen, national or resident alien.
Taxpayers also have the option to claim the credit for other dependents in addition to the child and dependent care credit and the earned income credit. Taxpayers can also use the Tax Assistant software on the IRS website to see if they qualify for the credit.
Taxpayers looking to see if their child or dependent qualifies for the Child Tax Credit or the Credit for Other Dependents, will need to provide the following:
- Their filing status.
- Whether they can claim the person as a dependent.
- The person’s date of birth.
Taxpayers must also be U.S. citizens or resident aliens for the entire tax year for which they are inquiring. If married, the spouse must also have been a U.S. citizen or resident alien for the entire tax year.