If you do not qualify for the Child Tax Credit or the Additional Child Tax Credit, the Tax Cuts and Jobs Act (TCJA) introduced the Other Dependent Care Credit (ODC).
Here’s how to qualify:
- The individual is the taxpayer’s older child, parent or cousin or someone who isn’t related to the taxpayer. However, they must have lived with the taxpayer for the entire tax year
- The maximum credit is $500 per qualifying dependent
- The dependent must be a U.S. citizen, a U.S. national, or a U.S. resident alien
- Taxpayers must list the name and Social Security number or individual taxpayer identification number per qualifying dependent
- The credit phases out beginning at $200,000 of the modified adjusted gross income and $400,000 for joint filers
The worksheet on page 6 of Publication 972, Child Tax Credit , can help determine if you can claim your credit.