How to Claim the “Other Dependent” Credit for Parents, Adult Children, and Relatives in 2026
Most taxpayers know about the Child Tax Credit, but far fewer are aware of its companion benefit: the Credit for Other Dependents, commonly referred to as the $500 non-child dependent credit. It is one of the most frequently overlooked tax benefits, especially for households supporting elderly parents, college-age children, or family members with disabilities.
This credit may not be refundable, but it directly reduces your tax bill by up to $500 per eligible dependent, which can significantly increase your refund—especially when multiple dependents qualify.
For millions of families caring for relatives, this credit is a valuable boost that should never be forgotten at tax time.
What Is the $500 Credit for Other Dependents?
The IRS provides a non-refundable tax credit of up to $500 for dependents who do not qualify for the Child Tax Credit.
It applies to:
- Elderly parents
- Disabled adult children
- College students age 17 or older (if still dependents)
- Other relatives who meet support and residency rules
- Qualifying members of your household
Because the credit is non-refundable, it reduces your tax liability but cannot generate a refund by itself. However, it can stack with refundable credits to increase your final refund amount.
Who Qualifies as a Non-Child Dependent?
To claim the $500 credit, the dependent must meet IRS-defined criteria.
A qualifying non-child dependent must:
1. Be a U.S. citizen, U.S. national, or resident alien
Foreign dependents generally do not qualify.
2. Have a valid taxpayer identification number
This can be a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
3. Be claimed as your dependent
You must provide more than half of their total support for the year.
4. Not qualify for the Child Tax Credit
This typically applies when the dependent is:
- Age 17 or older
- An adult child with a disability
- A parent or grandparent
- A sibling or relative meeting IRS support tests
5. Not have gross income above dependency limits (in some cases)
Parents and relatives usually must have limited income unless they meet the “member of household” rule.
If all criteria are met, you can claim the $500 credit for each qualifying dependent.
The Most Common Dependents That Qualify
Here is who most frequently qualifies for the credit:
1. Elderly Parents
If you pay more than half the cost of living for a parent—whether they live with you or not—you may qualify.
2. Adult Children With Disabilities
Children who are permanently disabled can remain dependents at any age.
3. College Students Age 17 or Older
Many parents support students who are too old for the Child Tax Credit.
This credit helps fill that gap.
4. Relatives Who Live With You
Grandparents, siblings, nieces, nephews, and in-laws may qualify if you support them.
5. Low-Income Family Members
Relatives with limited earnings who rely on you financially can be claimed.
This credit is especially valuable in multigenerational households.
How Much Is the Credit Worth?
The maximum value is $500 per qualifying dependent, and there is no limit on how many dependents you can claim.
Example:
A taxpayer supporting two elderly parents and a 19-year-old college student could claim:
3 dependents Ă— $500 = $1,500 reduction in tax liability
This can meaningfully increase the final refund amount.
Non-Refundable Doesn’t Mean “Useless”
While non-refundable credits cannot generate a refund by themselves, they are powerful when combined with other credits or withholding.
The $500 credit can:
- Reduce your tax bill before refundable credits are applied
- Increase the remaining balance available for refundable credits
- Boost your overall refund
- Help offset income from part-time jobs, benefits, or retirement distributions
For families already expecting a refund, the credit increases the final amount they receive.
Income Phase-Out Rules
The Credit for Other Dependents is subject to the same Modified AGI phase-outs as the Child Tax Credit:
- Begins to phase out at $200,000 for Single filers
- Begins at $400,000 for Married Filing Jointly
For most low- and moderate-income families, the full credit remains available.
How to Claim the Credit
To claim the dependent bonus:
- List the dependent on your tax return
- Confirm they meet IRS tests (support, relationship, residency)
- Provide the dependent’s SSN or ITIN
- Complete the dependents section of Form 1040
- Software will automatically calculate the $500 credit
Unlike education credits or child credits, no separate form is required.
Documentation You Should Keep
Although you do not submit documents with your return, the IRS may request proof during a review. Keep:
- Support records
- Residency or household records
- Tuition or medical statements for adult dependents
- Proof of relationship
- Evidence of financial assistance
This is especially important if more than one family member could claim the same dependent.
When You Cannot Claim the Credit
You cannot claim the $500 dependent credit if:
- The dependent files a joint return with their spouse
- The dependent provides more than half of their own support
- Another taxpayer claims them
- They do not meet residency or relationship rules
Checking these rules carefully ensures your return processes without delays or TC 570 holds.
The $500 Credit for Other Dependents is one of the most overlooked tax benefits, yet it provides meaningful financial relief for:
- Parents supporting elderly relatives
- Families caring for disabled adult children
- Households with college students over age 17
- Anyone financially supporting relatives who rely on them
If you support a dependent who does not qualify for the Child Tax Credit, do not miss this opportunity to reduce your tax bill and increase your refund in 2026.
Review the dependency rules, identify qualifying relatives, and take full advantage of this valuable credit.
