Additionally, taxpayers will now be eligible to receive a tax credit of up to $500 for each dependent other than children qualifying for the child tax credit. Examples of dependents who will qualify for this credit include, but are not limited to, children under the age of 19 (who don’t qualify for the child tax credit), full-time students under the age of 24, disabled children of any age, or other non-child relatives that meet the dependency tests.
The phase-out amounts for these credits have also been increased, meaning taxpayers who were previously ineligible for the credit due to high income levels may now be eligible going forward. Phase-out amounts for married filing jointly taxpayers increase from $110,000 to $400,000 while all other taxpayers will see an increase in the phase-out from $75,000 (single and head of household) and $55,000 (married filing separately) to $200,000. In addition, a larger amount of the child tax credit is now refundable, meaning that even if a taxpayer has no tax liability, they are eligible to receive a refund of up to $1,400 per child. The credit for dependents other than qualifying children is not refundable.