Great News! Older dependents now qualify for a tax credit

When my daughter was 17, she moved from her mother’s house to live with us. The previous year her mother got a $1000 Child Tax Credit; however, we would not get that benefit, as that tax credit did not apply to children older than 16.

The new tax law (TCJA) has a new tax credit of $500 that can reduce your tax owed before taxes paid and refundable credits for all dependents over 16…even aged parents who qualify as your dependents. You must have enough income to generate a tax liability to qualify for this credit.

While we no longer qualify for any of these credits, we are happy for those of you who do! While not something that is going to change your lifestyle, I do not know of anyone who cannot use an extra $500 in his or her pocket.

Tax professionals will need proof that you are the majority supporter of the one for whom you are claiming the tax credit, so be prepared to provide evidence (a summary of expenses paid on your dependent’s behalf, for example) to speed the preparation of your return.

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