What are the Child and Other Dependent Tax Credits?
These credits include of the Child Tax Credit and the Credit for Other Dependents. If you have a child or someone you support almost entirely, there's a good chance you're eligible for one of these tax breaks.
The Child Tax Credit is a tax break that can benefit people with children under the age of 17. You can get up to $2,000 for each child you claim. That's money in your pocket.
The Other Dependent Tax Credit is a new $500 tax break for people with dependents who are 17 or older, not necessarily related to them, or have an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number. Same deal here - you'll get $500 for each dependent you claim.
This is what Turbo tax states:
One thing to note about the Child Tax Credit - it can come with something called a "refundable credit" depending on your income and how many children you claim.
Here's an example of how refundable credits work:
Jane owes $1,675 in taxes and received a Child Tax Credit of $2,000. The tax she owed was reduced to zero, and the remaining $325 was converted to another credit called the Additional Child Tax Credit, which was refunded to her. If Jane didn't qualify for the Additional Child Tax Credit, the remaining $325 would have been lost.
We'll automatically figure out if you qualify for the Additional Child Tax Credit, and then figure out how much you're getting back.
TurboTax states he is eligible.
