(UNITED STATES) The federal Credit for Other Dependents (ODC) remains in place for the 2025 filing season, providing support when a family member is a qualifying dependent but does not meet the Child Tax Credit rules. For tax years 2018 through 2025, the credit is a nonrefundable credit of $500 per qualifying dependent. It can reduce a filer’s tax bill to zero but will not generate a refund beyond tax owed.
Income limits mirror the Child Tax Credit: the combined value of the Child Tax Credit and the ODC phases out once modified adjusted gross income (MAGI) rises above $400,000 for married filing jointly and $200,000 for all other filers. There is no inflation adjustment through 2025.
A key rule for immigrant households: the dependent must be a U.S. citizen, U.S. national, or U.S. resident alien to qualify. Relatives who live abroad and are not U.S. residents—such as a child living in Mexico—do not qualify for this specific benefit.
Who the credit was designed for
Lawmakers intended the ODC to cover “other dependents” who fall outside the Child Tax Credit age limit, including:
- Teenagers who turn 17 during the tax year
- College students
- Elderly parents who depend on adult children for care
This is particularly important for immigrant and multigenerational families where extended family members commonly share housing and expenses.
The IRS allows the dependent’s identification to be an SSN, ITIN, or ATIN for the ODC, which is less strict than the Child Tax Credit’s SSN-only requirement.
Core eligibility tests
Eligibility turns on several core questions:
- Citizenship/residency:
- The dependent must be a U.S. citizen, U.S. national, or U.S. resident alien.
- If the person is outside the country and does not meet U.S. residency, the credit is not available.
- Dependent type:
- The person may not qualify as a Child Tax Credit qualifying child, but can still be a qualifying dependent under the IRS’s broader rules (e.g., parent, grandparent, adult child) if the relationship and support tests are met.
- Support:
- The tax filer must provide more than half of the dependent’s support.
- Exclusivity:
- Only one taxpayer may claim a dependent in a given year.
- The dependent generally cannot file a joint return with a spouse unless that return is only to claim a refund of withheld tax.
Important: The dependent must have a TIN (SSN, ITIN, or ATIN) reported on the return to claim the ODC.
Identification differences from the Child Tax Credit
- ODC: SSN, ITIN, or ATIN accepted for the dependent.
- Child Tax Credit: requires an SSN valid for employment for each qualifying child.
This means:
– A 17‑year‑old who aged out of the Child Tax Credit may qualify for the ODC.
– A 20‑year‑old full‑time student could qualify for the ODC.
– A 65‑year‑old parent with an ITIN who lives with the taxpayer and relies on them for support could qualify for the ODC.
Income phaseout mechanics
Income phaseouts operate the same for the Child Tax Credit and the ODC. The IRS instructs filers to:
- Determine how much MAGI exceeds the threshold ($400,000 joint / $200,000 others).
- Round the excess up to the nearest $1,000.
- Reduce total credits (Child Tax Credit + ODC combined) by $50 for every $1,000 (or fraction of $1,000) of excess income.
Example calculations:
– Married filing jointly with $412,300 MAGI:
– Excess = $12,300 → rounded up = $13,000 → reduction = $650.
– Reduction applies to the combined credits; in practice, the ODC is often trimmed first.
- Single filer with $211,200 MAGI and one 18‑year‑old dependent:
- Excess = $11,200 → rounded up = $12,000 → reduction = $600.
- Because ODC = $500, the entire ODC is eliminated by phaseout.
- Married couple with three ODC-eligible dependents (combined ODC = $1,500) and MAGI of $405,100:
- Excess = $5,100 → rounded up = $6,000 → reduction = $300.
- Remaining ODC = $1,200.
How to claim the credit
- List each qualifying dependent on Form 1040 and provide their SSN, ITIN, or ATIN.
- Follow the IRS form instructions for definitions of qualifying dependent and support tests (e.g., who paid for housing, food, medical care, education).
- If an adopted child doesn’t yet have an SSN, an ATIN is acceptable for the ODC.
- If a parent does not qualify for an SSN, an ITIN can be used if all other dependency rules are met.
Practical examples
- Example 1: Married couple supports an 18‑year‑old with an SSN and a 65‑year‑old mother with an ITIN. Both qualify as dependents → ODC = $1,000 (subject to the $400,000 phaseout).
- Example 2: Single parent with a 17‑year‑old adopted daughter who has an ATIN and aged out of the Child Tax Credit → ODC = $500, and it can be combined with the Earned Income Credit (EIC) if eligible.
- Example 3: U.S. worker supports a 10‑year‑old nephew who lives in Mexico. Nephew may meet general dependency tests but is not a U.S. citizen/national/resident alien → ODC not available.
Records and documentation
Keep basic records to support dependency claims:
- A worksheet listing rent, groceries, utilities, medical costs, tuition, and who paid for them.
- Bank statements and receipts.
- Proof of college enrollment for students.
- Insurance premium and out‑of‑pocket medical cost records for elderly parents.
These help if the IRS questions a claim or if multiple family members might try to claim the same dependent.
Interaction with the Earned Income Credit (EIC)
- The EIC is a refundable credit aimed at low- and moderate-income workers and depends heavily on the number of qualifying children and income.
- To claim EIC with qualifying children, filers complete Schedule EIC (Form 1040), Earned Income Credit, which requires each child’s name, SSN, relationship, and months lived with the taxpayer.
- The EIC and ODC can be claimed together if the taxpayer meets both sets of rules; they serve different policy goals and calculate differently.
- Separated spouses who meet special rules may use single/HOH/qualifying surviving spouse EIC phaseout amounts even if not filing jointly—this affects EIC but not the fixed $500 ODC.
Common pitfalls for mixed‑status and immigrant families
- Misreading the residency requirement: a dependent abroad who is not a U.S. citizen/national/resident alien cannot qualify for the ODC.
- Confusing support tests or assuming someone else can be claimed without confirming who provides more than half the support.
- Not having the dependent’s TIN at filing time (if no TIN, ODC cannot be claimed until it is issued).
These limitations can feel harsh to families who provide support across borders; the tax code ties many dependent-based credits to citizenship/residency.
Practical tax planning tips
- Review each dependent’s status by December: age, residency, and support.
- Confirm identification numbers: SSN, ITIN, or ATIN for each dependent you plan to claim.
- Estimate income against phaseout thresholds and adjust withholding or estimated tax if you expect to lose part or all of the ODC due to higher income.
- For college students, track and save tuition and housing payment records.
- For elderly parents, tally medical premiums, pharmacy costs, and household support you provide.
- For mixed‑status families, verify immigration status and residency for any dependent connected to the ODC rules.
Important warnings and reminders
The ODC is nonrefundable: if it exceeds the tax owed, the unused portion is lost — it does not create a refund.
The ODC remains at $500 per qualifying dependent through tax year 2025, with the same phaseout thresholds. Changes would require congressional action and updated IRS guidance.
Also be mindful that the IRS will disallow duplicate claims if more than one taxpayer tries to claim the same dependent; this can delay refunds while the IRS resolves disputes.
Official resources
- IRS page on the Child Tax Credit and the Credit for Other Dependents:
- Official Form 1040 information:
- Schedule EIC (Form 1040) information:
Final takeaway
The ODC provides modest but meaningful relief for households supporting dependents who don’t qualify for the Child Tax Credit. It is straightforward to claim when eligibility is clear, but the citizenship/residency rule and phaseout math can trip up filers—especially in mixed‑status families.
If you’re unsure whether a relative counts as a qualifying dependent for the ODC, check the official IRS rules or consult a trusted tax advisor to avoid missteps that could delay refunds or trigger IRS notices. With attention to support tests, residency, and TINs, the ODC can be a steady part of a family’s yearly tax plan.
This Article in a Nutshell
The Credit for Other Dependents (ODC) remains available for tax years 2018–2025 as a nonrefundable $500 credit per qualifying dependent. It targets dependents who don’t qualify for the Child Tax Credit, including 17‑year‑olds, college students, and elderly parents. Dependents must be U.S. citizens, nationals, or resident aliens and must have a TIN (SSN, ITIN, or ATIN). The ODC is combined with the Child Tax Credit for income phaseouts, which begin at MAGI $400,000 for married filing jointly and $200,000 for other filers; credits shrink by $50 for every $1,000 (or fraction) over the threshold. Claim the ODC on Form 1040, keep records proving support, and verify residency and identification to avoid disallowed claims—especially important for mixed‑status families.
