Tax season is in full swing, and millions of families across the U.S. are expecting rebates, credits, and refunds. In addition to Social Security payments, the IRS is currently sending out Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC) payments.
However, if you don’t qualify for these, there’s still hope—you can apply for the Other Dependents Credit (ODC) this month. Let’s break down these credits and how you can claim them.
Table of Contents
Child Tax Credit
The child tax credit (CTC) is one of the biggest tax benefits available to families, designed to ease the financial burden of raising children. To qualify, both your income and children must meet IRS requirements:
- Single filers must earn less than $200,000
- Married couples filing jointly must earn less than $400,000
Currently, the CTC provides $2,000 per qualifying child, with up to $1,700 of that amount being refundable. To qualify, children must:
- Be under 17 years old
- Be fully dependent on the taxpayer
- Have a valid Social Security Number (SSN)
One thing to note—the enhanced credit introduced during the COVID-19 pandemic is set to be cut in half next year, reducing benefits for families. If you qualify, expect your refund within 21 days of filing, unless there are issues like IRS audits or incorrect claims.
Other Dependents Credit
Not everyone qualifies for the CTC, but you may still be eligible for the other dependents credit (ODC). This credit provides $500 per qualifying dependent who doesn’t meet the CTC criteria. The ODC was introduced in 2017 under the Tax Cuts and Jobs Act and is an option for dependents who are:
- Claimed on your tax return
- Not eligible for the CTC or ACTC
- U.S. citizens, resident aliens, or U.S. nationals
- Holders of an SSN, ITIN, or ATIN issued before the tax filing deadline
Unlike the CTC, the ODC applies to any dependent, not just children. However, income limits remain the same: $200,000 for single filers and $400,000 for joint filers.
Earned Income Tax Credit
Another key tax credit available this month is the earned income tax credit (EITC). This credit helps low-income individuals and families by reducing tax liability. It is available with or without children, but income limits apply:
| Number of Children | Maximum Income to Qualify |
|---|---|
| 0 | $25,511 |
| 1 | $49,309 |
| 2 | $55,768 |
| 3+ | $66,819 |
The EITC can be claimed retroactively for up to three years. For example, you have until April 15, 2025, to claim for 2021.
Don’t Forget to File
Even if your income falls below the taxable threshold, always file a tax return. Many credits, like the EITC and CTC, require filing to receive refunds. The IRS typically processes refunds within 21 days, so ensure your tax return is accurate to avoid delays.
FAQs
Who qualifies for the Child Tax Credit?
Children under 17, dependents of taxpayers, and those with valid SSNs qualify.
How much is the Other Dependents Credit?
The Other Dependents Credit provides $500 per qualifying dependent.
Can I claim the Earned Income Tax Credit without kids?
Yes, but your annual income must be below $25,511 to qualify.
When is the deadline to claim past EITC credits?
You can claim for up to three years; for 2021, the deadline is April 15, 2025.
How long does it take to get a tax refund?
Typically, refunds are processed within 21 days unless there are errors or audits.
