Credit for Other Dependents (2024 Guide)
The Credit for Other Dependents offers a valuable tax benefit for those with dependents who don’t qualify for the Child Tax Credit. This guide will help you understand how to qualify, claim the credit, and maximize your tax benefits.
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Key Takeaway
- The Credit for Other Dependents provides tax relief for individuals that you financially support.
What Is a Dependent?
To claim someone as a dependent, they must meet certain criteria set by the IRS. Specifically, all of the following must be true:
- They must be related to you or live with you for an entire year
- They must be US citizens or residents (or residents of Canada or Mexico)
- You must provide at least half of their financial support
- They cannot be claimed as a dependent by anyone else
If someone meets all these standards, you can claim them as a dependent on your annual tax return.
In most cases, a dependent is a qualifying child or relative who relies on you for financial support. This would allow you to claim the Child Tax Credit on their behalf. But what if a dependent isn’t your child? In that case, you can still claim the Credit for Other Dependents.
How to Qualify and Claim the Credit for Other Dependents
The purpose of the Credit for Other Dependents is to provide tax support for taxpayers with dependents who cannot claim the standard Child Tax Credit. To claim this credit, you must have someone you can claim as a dependent on your taxes but who is NOT eligible for the standard Child Tax Credit.
What Information You’ll Need
To apply for the Credit for Other Dependents, you’ll need:
- Evidence that the person qualifies as a dependent
- Evidence that the person does not qualify for the Child Tax Credit
- Social Security Number or Individual Taxpayer Identification for the dependent in question
Available Filing Methods
You can claim the Credit for Other Dependents when you file your US expat tax return. Complete Schedule 8812 and attach it to your return to request this credit. (Your Greenback accountant will take care of this for you!)
How to Calculate and Declare the Credit
The Credit for Other Dependents gives a maximum credit of $500 per qualifying dependent. This credit is non-refundable, meaning it will reduce your tax liability (or erase it completely) but will not give you a refund if it exceeds your tax bill.
The instructions provided with Schedule 8812 will help you calculate your credit.
Key Tax Considerations for US Expats
The Role of Foreign Tax Credits
As an American living abroad, you can claim several tax credits to help lighten your US tax burden. These include:
…and of course, the Child Tax Credit and Credit for Other Dependents.
Understanding Residency and Physical Presence Requirements
To benefit from these expat tax credits, you will have to qualify under the Physical Presence Test or Bona Fide Residence Test. Using these tests, you can establish that you live outside the US and are eligible for overseas tax breaks.
The Importance of Maintaining Accurate Records
Keeping accurate records is vital for claiming tax benefits and maximizing your savings. For at least 4 years, hang onto your:
- Receipts
- Financial statements
- Travel logs
- IRS communications
- Any other documents that will help support your claims
Greenback Can Help You Save More on Your Expat Taxes!
The Credit for Other Dependents is just one of several tax breaks you may be entitled to as an American living overseas. We can help you optimize your taxes to maximize your savings.
Greenback Expat Tax Services is an American company founded by and for US expats. Since 2009, we’ve helped more than 18,000 expats in 193 countries file over 60,000 returns — accurately and on time. Many of our CPAs and Enrolled Agents are expats themselves, with firsthand knowledge of the challenges of living abroad.
If you’re ready to be matched with a Greenback accountant, click the get started button below. For general questions on expat taxes or working with Greenback, contact our Customer Champions.
FAQs About the Credit for Other Dependents
What are the differences between the Child Tax Credit and the Credit for Other Dependents?
The Child Tax Credit is for qualifying children under 17, while the Credit for Other Dependents applies to any dependents who are not eligible for the Child Tax Credit.
How many Credits for Other Dependents can you claim?
You can claim as many credits as you have qualifying dependents. The only limit is a credit cap of $500 per dependent.
What does “other dependents” mean on a W-4 form?
“Other dependents” refers to dependents who don’t qualify for the Child Tax Credit but meet the criteria for the Credit for Other Dependents.
Can you claim an adult as a dependent?
Yes, you can claim an adult as a dependent as long as they meet the other IRS criteria for dependents.
Who is ineligible to be claimed as a dependent?
Any individuals who provide more than half of their own support, file a joint return, or are not US citizens, nationals, or resident aliens are ineligible for dependent status. They do not need to be a family member.
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