While millions of taxpayers claim the Child Tax Credit (CTC) when filing taxes, there is another little-known benefit that allows some to receive money if they care for someone who does not qualify for the CTC.
And it is that according to the Internal Revenue Service (IRS for its acronym in English), the so-called Credit for Other Dependents allows taxpayers to receive up to $500 for each dependent on their returns if they claim as a dependent someone who does not qualify for receive the popular CTC.
How can taxpayers claim this credit and who is eligible?
The IRS explains that taxpayers can claim the Credit for Other Dependents if:
- They cannot use the dependent to claim the Child Tax Credit
- The dependent is a US citizen
- The taxpayer claims the person as a dependent on their tax return
Who is eligible to be claimed under this credit?
- Dependent parents or other qualifying relatives supported by the filer
- Dependents of any age, including those over 18 years of age
- Dependents living with the taxpayer who are not related to the taxpayer
- Dependents who have Social Security numbers (SSNs) or Individual Taxpayer Identification numbers (ITINs).
Are there salary restrictions to receive the credit?
According to the IRS, couples who filed joint taxes and earned more than $400,000 will not be able to receive the benefit. Singles who earned more than $200,000 will also not be able to claim it.
Don’t know if you qualify?
The IRS has an interactive tool where taxpayers can find out if they qualify for this benefit and other credits.