$500 Credit You Can Claim In March — IRS Makes It Official

With tax season in full swing, many families are looking for ways to maximize their refunds and reduce their tax liability. While the Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC) remain popular options, those who don’t qualify for these credits may still be eligible for a $500 tax credit through the Other Dependents Credit.

Child Tax Credit: Who Qualifies for $2,000 Per Child?

The Child Tax Credit (CTC) allows eligible families to claim $2,000 per qualifying child under age 17. To qualify, your adjusted gross income (AGI) must be below:

• $200,000 for single filers
• $400,000 for married couples filing jointly

Of the $2,000 credit per child, up to $1,700 is refundable through the Additional Child Tax Credit (ACTC). This means that if the CTC reduces your tax liability to zero, you could still receive a refund for the leftover amount through the ACTC.

However, the $2,000 Child Tax Credit may not last beyond this year. It was increased from $1,000 per child as part of pandemic-era tax relief, but there is uncertainty about whether the higher amount will continue in 2026.

$500 Tax Credit: What Is the Other Dependents Credit?

If you don’t qualify for the Child Tax Credit, you may still be able to claim the Other Dependents Credit. This credit allows taxpayers to claim $500 per dependent who does not meet the requirements for the Child Tax Credit but still relies on them for financial support.

Who Qualifies for the $500 Credit?

Your dependent must meet at least one of the following criteria:

• Dependents of any age, including those 18 or older
• Dependent parents or relatives supported by the taxpayer
• Dependents living with the taxpayer who are not related
• Dependents must have a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)

Income limits are the same as the Child Tax Credit:

• $200,000 or less for single filers
• $400,000 or less for married couples filing jointly

How to Claim the $500 Tax Credit

1. Check Your Dependents: Review IRS guidelines to confirm your dependent qualifies.
2. File Your Tax Return: Use Form 1040 or 1040-SR and include your dependents’ information.
3. Submit Required Documentation: The IRS may request proof of dependency, such as birth certificates or financial support records.
4. Claim the Credit on Schedule 8812: This form helps determine eligibility for both the Child Tax Credit and the Other Dependents Credit.

Will You Get a Refund This Year?

Filing taxes doesn’t always guarantee a refund. If you have already filed, you can check your refund status through the IRS “Where’s My Refund?” tool. The IRS may also contact you if additional information is needed to process your return or issue a refund.

Even if you don’t qualify for the Child Tax Credit, the $500 Other Dependents Credit could help reduce your tax bill or increase your refund. With the tax filing deadline approaching, it’s essential to check your eligibility and ensure your dependents are correctly listed on your tax return.

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