The Other Dependents Credit (ODC) is a tax benefit that allows taxpayers to receive up to $500 for each qualifying dependent who does not meet the requirements for the Child Tax Credit (CTC) or the Additional Child Tax Credit (ACTC). This credit was introduced as part of the 2017 Tax Cuts and Jobs Act (TCJA) to provide financial relief for families who support dependents outside the scope of traditional child tax credits.
Who Qualifies for the ODC?
To claim the ODC, the Internal Revenue Service (IRS) has specific criteria that both the taxpayer and the dependent must meet. A qualifying dependent must:
- Be listed as a dependent on the taxpayer’s return.
- Not be eligible for the CTC or ACTC.
- Be a U.S. citizen, U.S. national, or U.S. resident alien.
- Have a valid Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Adoption Taxpayer Identification Number (ATIN) issued before the tax return due date (including extensions).
Eligible Dependents
The ODC provides a tax credit of up to $500 per qualifying dependent. Eligible dependents may include:
- Adult dependents – Children who are 18 years or older and do not qualify for the CTC.
- Relatives supported by the taxpayer – Parents, siblings, or other relatives who rely on the taxpayer for financial support.
- Unrelated dependents – Individuals who live with the taxpayer and qualify as a dependent under IRS rules.
Income Limits
Like many tax credits, the ODC begins to phase out at certain income levels.
| Filing Status | Income Threshold for Phase-Out |
|---|---|
| Single Filers | $200,000 |
| Married Filing Jointly | $400,000 |
If a taxpayer’s income exceeds these limits, the credit amount gradually decreases, reducing the benefit for higher earners.
How to Claim the ODC
To claim the Other Dependents Credit on a tax return, follow these steps:
- Ensure your dependent qualifies – Verify that the individual meets IRS criteria for the ODC.
- Gather required information – Have the dependent’s SSN, ITIN, or ATIN ready for tax filing.
- Complete IRS Form 1040 – Report your dependent on your tax return and calculate the credit based on eligibility.
- Use the IRS tax software or a tax professional – Filing electronically ensures accuracy and speeds up processing.
The ODC provides valuable relief to families supporting dependents who do not qualify for other credits. If you care for an elderly parent, a college-aged child, or a non-relative who depends on you, this credit can reduce your tax liability and help maximize your refund.
FAQs
Who can claim the Other Dependents Credit?
Taxpayers supporting dependents who don’t qualify for the CTC or ACTC.
How much is the ODC worth per dependent?
The maximum credit amount is $500 per eligible dependent.
What is the income limit for claiming the ODC?
The credit phases out at $200,000 ($400,000 for joint filers).
Can I claim ODC for a dependent parent?
Yes, parents and other relatives can qualify if they meet IRS criteria.
What tax form do I use to claim the ODC?
You can claim the ODC on IRS Form 1040 when filing your taxes.
