Credit for other dependents: the $500 credit for teens, students and relatives

What is the credit for other dependents?

The credit for other dependents is a flat $500 tax credit for each person you claim as a dependent who cannot be used for the child tax credit. The IRS describes it as nonrefundable on its child tax credit page, so it lowers the tax you owe but never creates a refund by itself.

You claim it on the same form as the child tax credit. On Form 1040 you check the Credit for other dependents box next to the person's name in the Dependents section, and Schedule 8812 multiplies the count on line 6 by $500 on line 7. The draft 2026 Schedule 8812 still uses the $500 figure.

Who counts as an other dependent?

Anyone who passes the dependency tests but misses a child tax credit requirement can qualify, as long as they are a US citizen, US national or US resident alien. They fall into two groups.

Qualifying children who miss the CTC

• Children age 17 or 18 at the end of the year who still live with you.
• Full-time students under 24 at the end of the year.
• Children of any age who are permanently and totally disabled.
• Children under 17 who have an ITIN or ATIN instead of a Social Security number valid for employment.

Qualifying relatives

A qualifying relative is someone who is not anyone's qualifying child, for whom you pay more than half of total support for the year, and who is either related to you in one of the ways the IRS lists (parent, grandparent, sibling, in-law, aunt, uncle, niece, nephew and others) or lived with you all year as a member of your household.

You cannot claim yourself or your spouse, and you cannot check both the child tax credit box and the ODC box for the same person.

Qualifying relative gross income limit for 2026

For 2026, a qualifying relative must have gross income under $5,300, per Rev. Proc. 2025-32. Gross income is taxable income before deductions: wages, taxable interest, taxable pension payments, rental income and similar items. Income that is exempt from tax, such as Social Security benefits that are not taxable, is not included.

The limit does not apply to qualifying children. A 20-year-old full-time student who earns $9,000 at a summer job can still be your dependent and bring in the $500 credit, provided the student did not pay more than half of their own support.

Is the $500 dependent credit refundable?

No. The $500 dependent credit can only offset income tax, and unlike the child tax credit it has no refundable portion. If your tax is $300, a single ODC saves you $300 and the other $200 is lost. It is never carried to another year.

This matters for lower-income families. A household that owes no income tax after the standard deduction gets nothing from the ODC, even though it can still count the person as a dependent for head of household status or the earned income credit where they qualify. The head of household requirements page covers the filing status side.

Income phaseout shared with the child tax credit

The ODC begins to shrink once modified AGI passes $200,000, or $400,000 on a joint return. Schedule 8812 adds your child tax credit and ODC together on line 8, then cuts the total by $50 for each $1,000 or part of $1,000 above the threshold. A single filer with two other dependents and modified AGI of $212,400 is $12,400 over, rounded up to $13,000; 5% of that is $650, so the $1,000 credit falls to $350.

Credit for other dependents 2026 examples: teens, students and parents

These cases assume you owe enough tax to use the credit and your income is under the phaseout.

1. A 17-year-old high school senior who lived with you all year: not eligible for the child tax credit because of age, but a qualifying child for dependency. You get $500.
2. A 21-year-old full-time college student who lives in a dorm most of the year: time at school counts as a temporary absence, so the student still lived with you. You get $500, and you may also qualify for an education credit; see the education tax credits guide.
3. A 25-year-old son who is not a student or disabled and earned $6,000: too old to be a qualifying child, and his gross income exceeds $5,300, so he cannot be a qualifying relative. No credit.
4. Your 74-year-old mother who lives in her own apartment, receives nontaxable Social Security plus a $3,000 taxable pension, and relies on you for over half her support: parents do not need to live with you. You get $500.
5. A 10-year-old child with an ITIN who is a US resident alien and lived with you all year: not eligible for the child tax credit without an SSN, but eligible for $500.
6. A niece who lives in Mexico and qualifies as your dependent: she is not a US citizen, national or resident alien, so no ODC.

How to claim the ODC and adjust your paycheck

1. Make sure the dependent has an SSN, ITIN or ATIN issued on or before your return's due date, including extensions. Apply early; the SSN rules page explains the timing.
2. List the person in the Dependents section of Form 1040 and check the Credit for other dependents box.
3. Complete Schedule 8812 Part I. Lines 6 and 7 hold the ODC count and dollar amount.
4. To see the benefit in each paycheck instead of at filing, enter $500 per other dependent in Step 3 of Form W-4. The W-4 withholding guide shows how.