Every tax season, Americans try to claim one or more of the numerous tax credits made available by the IRS in an effort to reduce their tax burden or increase the size of their refund.
Child Tax Credit VS Credit For Other Dependents – All You Need To Know (Photo: Marca)
As the Child Tax Credit and the Credit for Other Dependents, which, despite appearances, are not the same, are two of the most frequently claimed tax credits, they are related to children.
The credit for other dependents may be available to taxpayers with dependents who don’t qualify for the child tax credit. Your dependent must meet certain requirements in order to receive the credit.
What Types Of Credits Are Available For Other Dependents?
If you have dependents of any age, even those over the age of 18, and want to claim the IRS’ Credit for Other Dependents on your tax return, you can do so.
Even if a dependent lives in the home but is not a taxpayer’s family member, they must have either a Social Security number or an individual taxpayer identification number.
This credit is reduced if the taxpayer’s income exceeds $200,000 per year, and it is increased to $400,000 for married couples who file jointly.
The Credit for Other Dependents and the Child Tax Credit cannot be applied to the same dependent at the same time.
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Claiming the Credit for Other Dependents
The credit for other dependents may be available to taxpayers with dependents who don’t qualify for the child tax credit. For the 2020 tax year, the credit’s maximum amount is $500. Your dependent must meet certain requirements in order to receive the credit.
The dependent you are claiming, for instance, must be at least 17 years old and have a unique tax identification number. Other dependents also include non-related dependents residing with the taxpayer as well as dependent parents or other qualifying relatives who are supported by the taxpayer.
