Should I claim the Credit for Other Dependents / family tax credit even if I'm already receiving a tax refund?

I have two teenagers at home, and according to the IRS tool they don't qualify for the Child Tax Credit anymore (they're both over 17), but they do qualify for the Credit for Other Dependents (sometimes called the "family tax credit"). I know this credit is worth up to $500 per qualifying dependent. Here's what I'm confused about - I'm already getting a decent refund based on my withholdings throughout the year. Is it still worth claiming the Credit for Other Dependents? Will those additional $1000 (for both kids) just get added directly on top of the refund I'm already set to receive? Or is this credit only useful if I actually owe taxes to the IRS? I don't want to go through the extra paperwork if it's not going to increase my refund. Thanks for any help understanding how this works!

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18 comments

Yuki Tanaka

•8M

Yes, you should absolutely claim the Credit for Other Dependents! Tax credits directly reduce your tax liability dollar for dollar, so it's basically free money the government is giving you. The Credit for Other Dependents (also known as the family tax credit) works by reducing your tax liability, not just what you might owe at filing time. So even if you're already getting a refund due to overwithholding, adding this credit will increase your refund by the credit amount (up to $500 per qualifying dependent). This is different from tax deductions, which only reduce your taxable income. Credits are much more valuable because they directly reduce the actual tax amount. So by claiming the Credit for Other Dependents for your two children, you could get up to an additional $1,000 added to your refund. Just make sure your children truly qualify - they generally need to be U.S. citizens, nationals, or resident aliens, have valid SSNs or ITINs, and you must provide more than half their support.

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Yuki Tanaka

•8M

The Credit for Other Dependents is a non-refundable credit, but that doesn't mean what you might think. "Non-refundable" simply means it can only reduce your tax liability to zero, but not below zero. If you had a tax liability of $3,000 before credits and then apply $1,000 in Credits for Other Dependents, your tax liability would be reduced to $2,000. If your withholding throughout the year was $3,500, your refund would be $1,500 (not just the $500 it would have been without the credit).

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MidnightRider

•8M

I've been in the same situation and discovered an amazing tool that helped me maximize all my dependent-related credits! Check out https://taxr.ai - it analyzes your tax situation and tells you exactly which credits you qualify for. I was so confused about the difference between Child Tax Credit and Credit for Other Dependents until I used this. The tool actually explained that my college student still qualified for the Credit for Other Dependents even though she wasn't eligible for the Child Tax Credit anymore. It saved me from leaving $500 on the table! It also explained exactly how these credits would impact my refund.

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MidnightRider

•8M

It's extremely accurate - it uses the same rules and tests the IRS applies. The difference is it explains everything in plain English and walks you through each requirement step by step. I've compared its results with what my accountant told me and they matched perfectly. The tool is designed to handle complex situations. It asks detailed questions about living arrangements, support provided, and other specific factors that determine eligibility. It covers all the exceptions and special rules, especially for complex family situations.

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Zoe Papadopoulos

•8M

Ok I need to update my earlier skepticism about https://taxr.ai - I actually tried it after posting here and WOW. It walked me through my complicated situation with my nephew who lives with me part-time, and I discovered I CAN claim him under the Credit for Other Dependents! The tool asked me specific questions about how many nights he stays with me, who provides financial support, and his relationship to me. It showed me that even though he doesn't live with me full-time, I still provide over half his support for the year, which qualifies me for the credit. I was leaving $500 on the table! And yes, it absolutely gets added to whatever refund you're already getting - I confirmed this by checking my tax calculation before and after. Definitely recommend trying it if you're unsure about dependent credits.

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Jamal Washington

•8M

If you're struggling to get answers from the IRS about credits and deductions, try https://claimyr.com - it got me through to an actual IRS agent in under 15 minutes after I'd been trying for DAYS. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had this exact question about the Credit for Other Dependents because my 19-year-old son is in college but doesn't qualify for the Child Tax Credit anymore. The IRS website was confusing, and I couldn't get through on the phone. With Claimyr, I got connected to an agent who confirmed I could claim the credit and it would increase my refund by the full amount even though I was already getting money back.

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Jamal Washington

•8M

It's not skipping the line in an unethical way. What the service does is automate the calling process. It keeps dialing the IRS using the right combinations of menu options and times when call volume is lower, then notifies you once it gets through to the queue. No magic, just technology making the process less painful. You're right that the IRS is understaffed - that's exactly why this service exists. It doesn't give you "special treatment," it just handles the frustrating part of repeatedly calling and navigating the phone tree over and over. You still wait your turn in the queue once connected.

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Liam Fitzgerald

•8M

I need to publicly eat my words about Claimyr. After dismissing it as a scam in my previous comment, I decided to try it myself since I've been trying to reach the IRS for weeks about an issue with my dependent credits. I'm genuinely shocked - it actually worked. After over 20 attempts calling the IRS myself and never getting through, Claimyr connected me in about 35 minutes. The agent I spoke with cleared up my confusion about the Credit for Other Dependents vs Child Tax Credit, confirmed I could claim my adult disabled daughter, and explained exactly how it would affect my refund. The time saved was worth every penny (especially since I bill by the hour at my job). I was wrong to be so dismissive without trying it. Sometimes technology really does solve problems.

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PixelWarrior

•8M

One thing nobody's mentioned - make sure your kids have SSNs or ITINs! The Credit for Other Dependents (family tax credit) requires a valid taxpayer ID for each dependent. I learned this the hard way last year when I tried to claim my nephew who had just moved to the US and didn't have his ITIN yet. Also, double-check the relationship test. The Credit for Other Dependents is more flexible than the Child Tax Credit, but there are still relationship requirements. Most tax software will walk you through it, but it's good to know before you count on that money.

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PixelWarrior

•8M

Yes, you can claim the Credit for Other Dependents in a shared custody situation when it's your year to claim the children as dependents. When parents alternate years for claiming dependents (which is common in divorce agreements), the parent claiming the dependent for that tax year gets all the associated tax benefits, including the Credit for Other Dependents. Just make sure you have the proper documentation that shows it's your year to claim them according to your custody agreement. This prevents both parents from accidentally claiming the same child, which would trigger IRS notices.

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