People across America continue to seek different methods to grow their tax refund amounts and minimize their tax expenses during the ongoing tax season. Rarely discussed as an option is the Credit for Other Dependents (ODC). The non-refundable tax credit delivers monetary help to taxpayers who support dependents ineligible for the Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC). The following guide details all the necessary information to claim the Credit for Other Dependents in 2025.
The tax credit benefits those who care for dependents who cannot get the CTC.
Union lawmakers established the Credit for Other Dependents (ODC) Act while implementing the Tax Cuts and Jobs Act 2017. The tax provision serves those dependents who cannot benefit from the Child Tax Credit or Additional Child Tax Credit programs. The credit extends benefits that can deliver a maximum payment of $500 for each qualifying dependent to assist with tax reduction. CTC’s partial refundability ODC cannot generate any tax return beyond the total tax amount you owe.
The ODC provides benefits to families that maintain dependents aged 17 or older, such as school-aged teens, elderly relatives supported financially, and disabled dependents. The dependence credit provides substantial financial assistance to people who support their dependents. The ODC tax relief program is available through the IRS, as stated on their official website.
People who meet all eligibility standards will receive more monthly payment funds.
To receive the ODC, you must satisfy the particular specifications outlined by the IRS. First, the person must be listed in your tax return and be ineligible for the ACTC and CTC while being either a citizen, U.S. national, or resident alien. All dependents must possess a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Adoption Taxpayer Identification Number (ATIN), which was issued before the official tax filing period and all included extensions.
Families with dependents aged 17 and older who need financial support obtain significant benefits from the ODC to cover expenses. This credit applies particularly well to teenage students and young adults in school and elderly relatives depending on your support, along with dependents with disabilities. The credit acts to decrease financial responsibilities for families caring for dependents in need.
Your yearly income could result in less than $500 from the credit.
The Credit for Other Dependents carries income-related limits for its eligibility. The Additional Child Tax Credit reduces your Adjusted Gross Income when it exceeds $200,000 or $400,000 for Joint Married couples. Too low an income makes you ineligible for complete coverage under this credit program. An analysis showed that around one-quarter of qualified dependents cannot get the $500 benefit because their family incomes fall below a certain threshold.
The tax planning decisions depend heavily on these income thresholds. You should calculate your income to stay within the designated levels because it will ensure you maximize your ODC benefits. To determine your credit qualification, you should seek advice from a tax professional who can help optimize this benefit.
Filing your 2025 taxes? The procedure to claim the Credit for Other Dependents includes these steps.
The ODC becomes accessible only after you confirm your dependent meets IRS qualifying standards. You must include your dependent’s social security number, individual taxpayer identification number, or industry tax identification number on your tax return while using IRS Form 1040 to claim the Other Dependents Credit. The full credit amount becomes available only when your income exceeds the phase-out limits.
The Official Dependents Deduction requires precise tax filing and complete information inclusion to receive the deduction benefit. Tax software or professional tax help will ensure you benefit from this valuable credit. The IRS Free File tool is an important support for people who want to optimize their tax benefits.
