Parents of College Age Children May Qualify for a Tax Credit
For purposes of the Child Tax Credit for the 2021 tax year, a qualifying child is one who doesn’t turn 18 before January 1, 2022, and who satisfies certain other conditions. Taxpayers who don’t qualify for the Child Tax Credit because their children are too old may have an alternative.
The Credit for Other Dependents maxes out at $500 per dependent if certain conditions are met. To qualify, a dependent must:
- Be age 17 or older;
- Have an individual taxpayer ID number;
- Be a qualifying relative of the taxpayer or if unrelated, must live with the taxpayer.
In addition to an older child, a taxpayer’s dependent parent may also qualify.
The credit begins to phase out when income exceeds $200,000 or $400,000 for married couples who file joint tax returns. It can be claimed in addition to the Child and Dependent Care Credit and the Earned Income Credit. Click here for more information.