topic Other Dependents Tax Credit in Deductions & credits

Other Dependents Tax Credit

CARLSOME81 — Mon, 01 Mar 2021 19:54:04 GMT

I have a son who's older than 17, who did not work all of last year - he lived the entire year in a house I own, and I supplied 100% of his financial support - the Turbotax description of situations that allow the other dependents tax credit seems to imply that I am eligible for this credit, but when I try to get it, the S/W is telling me I'm not eligible because I don't have child dependents - this seems to make no sense... Can someone explain if I'm eligible for the credit, and if not, why not?

Re: Other Dependents Tax Credit

HelenC12 — Mon, 01 Mar 2021 20:31:54 GMT

@Opus 17 Thank you.

@CARLSOME81 From your post, it looks like you should get the $500 credit. You may have answered something incorrectly when you were entering him as a dependent. Carefully review how you answered each question, in the Personal Info section of TurboTax. Select the Edit next to your son.

To be eligible for the $500 Credit for Other Dependents ("Family Tax Credit"), the person(s) being claimed must fit the definition of a qualifying child or a qualifying relative, as defined here:

Qualifying child

They are your biological child, stepchild, adopted child, eligible foster child, sibling or half-sibling, stepsibling, or an offspring of any of these;
They haven’t already been claimed for the Child Tax Credit or Credit for Other Dependents, either by you or by anyone else;
They are a U.S. citizen, U.S. resident alien, or U.S. national;
They aren’t filing a joint return with their spouse;
They are under the age of 19 (24 for full-time students; no age limit for permanently and totally disabled children);
They live with you for more than half the year (exceptions apply); and
They didn't provide more than half of their own support for the year.

Despite the name, a qualifying relative doesn’t have to be related to you. However, a nonrelative must have lived with you for the entire year.

On the other hand, a true relative isn’t required to live with you the entire year, as long as they are your:

Biological child, stepchild, adopted child, foster child, sibling, half-sibling, stepsibling, or an offspring of any of these; or
Biologically-related direct ancestor (parent, grandparent, etc.), stepparent, aunt, uncle, son- or daughter-in-law, father- or mother-in-law, brother- or sister-in-law.

Related or not, the person you’re claiming as a qualified relative must also fit these criteria:

They haven’t already been claimed for the Child Tax Credit or Credit for Other Dependents, either by you or by anyone else;
They are a U.S. citizen, U.S. resident alien, or U.S. national;
They aren’t filing a joint return with their spouse;
They either lived with you for the entire year or are related to you;
They have less than $4,300 gross income in 2020 (nontaxable Social Security doesn't count); and
You provided more than half of their financial support. More info

The credit is $500 per qualifying dependent as long as the adjusted gross income (AGI) doesn’t exceed $200,000 ($400,000 if filing jointly). The credit goes down $50 for every $1,000 that the AGI exceeds the $200,000/$400,000 limit.

[Edited 3/1/2021|12:31 PM PST]

Re: Other Dependents Tax Credit

Opus 17 — Mon, 01 Mar 2021 20:23:31 GMT

@HelenC12 I think your answer was cut off. This person is not a QC dependent, but they may be a qualifying relative dependent.

@CARLSOME81 , Turbotax may be asking you,

can this person be claimed as a dependent by someone else?
Is this person filing a joint tax return with a spouse?
do you provide more than half this person's support?
did this person live with you for all of 2020?

Your son is eligible even if he did not live with you all the year, because he is one of the types of relatives who do not have to live with you all year to be claimed as a "qualifying relative" dependent. I would expect Turbotax to pick up the relationship from that question, so make sure the relationship is correct. Also, check the child's birthdate and social security number.

You may need to delete the dependent and re-enter it.