Taxpayers who have dependents that do not qualify for the child tax credit can still claim a credit for other dependents. Other dependents can mean adult children, relatives or children who are too old to qualify for the child tax credit. This is a nonrefundable credit so it can help to reduce your tax liability, but the IRS will not refund you any portion that is left over.
The maximum credit amount is $500 for each dependent that meets certain criteria:
- Dependents who are age 17 or older
- Dependents who have an individual taxpayer identification number
- Dependent parents or other qualifying relatives supported by the taxpayer
- Dependents living with the taxpayer who are not related to the taxpayer
The credit will begin to phase out for single taxpayers if their income is more than $200,000 and the credit will begin to phase out for married couples filing a joint return at $400,000.
A taxpayer can claim this credit if:
- 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 can claim the credit for other dependents in addition to the child and dependent care credit and the earned income credit. To find out if an individual qualifies as a dependent, the IRS provides an interactive tool to determine the eligibility of the individual. Please contact your Henry+Horne advisor with any questions.