Today marks the official start of filing season, meaning millions of taxpayers across the country are starting to gather tax-related documents ahead of a visit with their tax preparer. For their part, the Internal Revenue Service is hard at work providing helpful tips about necessary forms and tax credits.

One of the latest IRS reminders focuses on the credit for other dependents. In the press release, the agency notes that taxpayers with dependents who no longer qualify for the child tax credit may still be able to claim the credit for other dependents.

Worth up to $500, the credit for other dependents—like the child tax credit—begins to phaseout when individual filers make more than $200,000 and married couples filing jointly make more than $400,000. Provided the filing taxpayer’s income does not enter the phaseout threshold and their dependent is in one of the following categories, the IRS says they may be able to claim the full credit:

• Dependents who are age 17 or older.
• Dependents who have individual taxpayer identification numbers.
• Dependent parents or other qualifying relatives supported by the taxpayer.
• Dependents living with the taxpayer who aren't related to the taxpayer.

When claiming a qualifying dependent on their return, the IRS also reminds taxpayers to make sure that the dependent is “a U.S. citizen, national, or resident alien” and cannot also be used “to claim the child tax credit or additional child tax credit.” However, the agency notes there are two other dependent-related credits that are still available for taxpayers who claim the credit for other dependents.

“Taxpayers can claim the credit for other dependents in addition to the child and dependent care credit and the earned income credit,” explains the IRS. “They can use the IRS Interactive Tax Assistant, Does My Child/Dependent Qualify for the Child Tax Credit or the Credit for Other Dependents?, to help determine if they are eligible to claim the credit.”

The IRS also recommends reviewing Publication 972, Child Tax Credit and Credit for Other Dependents and Publication 501, Dependents, Standard Deduction and Filing Information for more information.

Source: Tax Tip 2021-18