As tax season continues, many Americans may be eligible to claim the Credit for Other Dependents (ODC). This tax credit provides relief for taxpayers who support qualifying dependents but do not qualify for the Child Tax Credit (CTC) or the Additional Child Tax Credit (ACTC).
Credit for Other Dependents
The ODC was introduced in 2017 as part of the Tax Cuts and Jobs Act (TCJA) to provide additional financial support to taxpayers with dependents who do not meet the criteria for the CTC or ACTC.
Unlike the ACTC, which can provide a refundable amount, the ODC is non-refundable, meaning it can reduce tax liability but does not result in a tax refund if it exceeds the taxes owed.
Who Qualifies?
To claim the ODC, your dependent must meet the following requirements:
- Be a declared dependent on your tax return.
- Not qualify for the CTC or ACTC.
- Be a U.S. citizen, U.S. national, or U.S. resident alien.
- Have a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Adoption Taxpayer Identification Number (ATIN) issued before the tax return due date, including extensions.
Maximum Amount
The maximum credit amount you can receive is $500 per qualifying dependent.
| Tax Year | Maximum Credit Per Dependent | Income Phaseout Starts (Single) | Income Phaseout Starts (Married Filing Jointly) |
|---|---|---|---|
| 2018-2025 | $500 | $200,000 | $400,000 |
The credit amount gradually decreases once your adjusted gross income (AGI) exceeds $200,000 for single filers and $400,000 for married couples filing jointly.
When Can You Claim?
- Payments for these credits began in March 2024.
- Taxpayers can claim the credit until the end of the tax season on April 15, 2025.
- The IRS recommends using the Interactive Tax Assistant to check eligibility for the CTC, ACTC, or ODC.
Final Thoughts
The Credit for Other Dependents offers additional tax relief for families who do not qualify for the CTC or ACTC. If you have dependents who meet the IRS requirements, claiming this credit could help reduce your tax bill.
Be sure to file your return before the April 15 deadline to take advantage of this benefit.
FAQs
What is the Credit for Other Dependents?
It’s a $500 non-refundable tax credit for dependents who don’t qualify for the CTC or ACTC.
Who qualifies for the ODC?
Dependents who are U.S. citizens, nationals, or resident aliens and don’t qualify for the CTC or ACTC.
When does the ODC phase out?
The credit begins to decrease when AGI exceeds $200,000 ($400,000 for joint filers).
When is the last day to claim the ODC?
The deadline to file and claim the ODC is April 15, 2025.
How do I check if I qualify for the ODC?
Use the IRS Interactive Tax Assistant to determine your eligibility.
