The Credit for Other Dependents (ODC) is a non-refundable tax credit designed for taxpayers who have qualifying dependents that do not meet the criteria for the Child Tax Credit (CTC) or Additional Child Tax Credit (ACTC). This credit was introduced as part of the Tax Cuts and Jobs Act of 2017 (TCJA) to provide additional financial relief to families. Unlike the ACTC, which allows families to receive a refundable amount, the ODC simply reduces the amount of tax owed, up to a maximum of $500 per qualifying dependent.
Eligibility
To claim the Credit for Other Dependents, the IRS has outlined specific requirements that must be met:
- The dependent must be listed on your tax return.
- The dependent cannot qualify for the CTC or ACTC.
- The dependent must be a U.S. citizen, U.S. national, or U.S. resident alien.
- The dependent must 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.
Amount
The maximum ODC available is $500 per qualifying dependent. However, this credit begins to phase out if your adjusted gross income (AGI) exceeds:
| Filing Status | Phase-Out Threshold |
|---|---|
| Single or Head of Household | $200,000 |
| Married Filing Jointly | $400,000 |
If your AGI exceeds these limits, the amount of credit you can claim will be reduced gradually.
Claiming
To claim the ODC, you need to report your qualifying dependents on your tax return and complete the necessary sections of Form 1040. The IRS recommends using their Interactive Tax Assistant tool to determine eligibility for the CTC, ACTC, or ODC. If you qualify for multiple credits, this tool can help ensure you claim the one that provides the greatest tax benefit.
Maximizing
Want to maximize your tax refund and minimize what you owe? Here are three ways to make the most of the ODC and other tax credits:
- Check all available credits – You may qualify for other tax benefits like the Earned Income Tax Credit (EITC) or education credits.
- File electronically – E-filing reduces errors and ensures quicker processing of refunds.
- Use tax software or a professional – Tax software can optimize your return, and a tax professional can help you navigate complex tax rules.
The Credit for Other Dependents provides a valuable tax break for those with dependents who do not qualify for the CTC or ACTC. While it is not refundable, it can still lower your tax bill. Knowing eligibility requirements and income limits can help you maximize your tax benefits and avoid paying more than necessary.
FAQs
Who qualifies for the Credit for Other Dependents?
Dependents who don’t qualify for the CTC or ACTC may be eligible.
How much is the Credit for Other Dependents?
The credit is up to $500 per qualifying dependent.
Is the ODC refundable?
No, the Credit for Other Dependents is non-refundable.
What income limits apply to the ODC?
The credit starts to phase out at $200,000 ($400,000 for joint filers).
How do I claim the ODC?
Report your dependents on Form 1040 and complete the tax credit section.
