Claiming the Credit for Other Dependents - March 2021
Money
Contributed by : Mukesh Makker
|
|
Taxpayers with dependents who don't qualify for the child tax credit may be able to claim the credit for other dependents. The maximum credit amount is $500. To take the credit, your dependent must meet certain conditions.
For example, the dependent you are claiming must be age 17 or older and have an individual taxpayer identification number. Other dependents also include dependent parents or other qualifying relatives supported by the taxpayer and dependents living with the taxpayer who aren't related to the taxpayer.
Here are some additional facts about the credit for other dependents:
1. The credit begins to phase out when the taxpayer's income is more than $200,000 ($400,000 for married couples filing a joint tax return).
2. Taxpayers can claim the credit for other dependents in addition to the child and dependent care credit and the earned income credit.
3. The dependent must be a U.S. citizen, national or resident alien.
4. A taxpayer can claim this credit if they claim the person as a dependent on the taxpayer's return.
5. The dependent cannot be used to claim the child tax credit or additional child tax credit.
For more information about this and other tax credits that could lower your taxes this year, please contact the office.
| About Author |
|
Mr. Maker is a certified Public Accountant and serving the South Asian community since 1993.
|
Website: https://taxprofessionalsnw.com/newsletter.php#8
Disclaimer: Please use this channel at your own discretion. These articles are contributed by our users. We are not responsible or liable for any problems related to the utilization of information of these articles.
View All Contributions
|
