If you claim dependents on your tax return, you may qualify for federal tax credits that can lower your tax bill — and in some cases, even increase your refund. Which credits you can claim depends on your dependent’s age, relationship to you, and your income.
First, a quick note on refundable vs. non-refundable credits
Not all tax credits work the same way.
Some tax credits can actually give you money back. These are called refundable credits. Even if you owe $0 in taxes, a refundable credit can still increase your refund.
Other tax credits can only help if you owe taxes. These are non-refundable credits. They can lower your tax bill to $0, but if you don’t owe anything, they don’t add money to your refund.
This matters when you’re claiming dependents because some dependent credits work in stages — one part lowers what you owe, and another part may turn into a refund if there’s anything left over.
Common dependent-related tax credits
The most common dependent-related credits are:
Child Tax Credit (CTC)
Additional Child Tax Credit (ACTC)
Credit for Other Dependents (ODC)
Each credit has different rules, income limits, and eligibility requirements.
If you’re unsure which credits apply to you, the IRS eligibility tool can help determine what you can claim on Schedule 8812.
What is the Child Tax Credit (CTC)?
The Child Tax Credit (CTC) helps families with qualifying children reduce the amount of tax they owe.
2025 Child Tax Credit basics
Amount: Up to $2,200 per qualifying child
Refundable?: No (it can reduce your tax bill to $0, but won’t create a refund by itself)
Age limit: Child must be under age 17 at the end of the tax year
Income phaseout begins at:
$200,000 for single filers
$400,000 for married filing jointly
If you qualify for the full Child Tax Credit but don’t owe enough in taxes to use all of it, the leftover amount doesn’t automatically get added to your refund. On its own, the Child Tax Credit can only lower what you owe.
What is the Additional Child Tax Credit (ACTC)?
The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit. It applies if the CTC reduces your tax bill to zero and you still have remaining credit.
2025 ACTC basics
Refundable amount: Up to $1,700 per qualifying child
Earned income requirement: At least $2,500
Income limits: Same phaseout thresholds as the CTC
Unlike the regular Child Tax Credit, the ACTC can increase your refund even if you don’t owe any federal income tax.
If you claim the ACTC, the IRS generally delays refunds until mid-February for 2025 tax returns, as required by law.
Who qualifies for the CTC and ACTC?
To qualify for the Child Tax Credit (and the ACTC), the child must:
Be under age 17 at the end of the tax year
Be a U.S. citizen, U.S. national, or resident alien
Have lived with you for more than half the year
Not have provided more than half of their own support
What is the Credit for Other Dependents (ODC)?
If your dependent doesn’t qualify for the Child Tax Credit, you may still qualify for the Credit for Other Dependents (ODC).
2025 ODC basics
Amount: Up to $500 per qualifying dependent
Refundable?: No
Income limits: Same phaseout thresholds as the CTC and ACTC
This credit commonly applies to:
Children age 17 or older who don’t qualify for the CTC
College-age dependents
Certain relatives you support
Who qualifies for the Credit for Other Dependents?
You may qualify for the Credit for Other Dependents if you claim a dependent who doesn’t qualify for the Child Tax Credit. This usually includes either an older child or a qualifying relative.
Option 1: Older children who don’t qualify for the Child Tax Credit
Your dependent may qualify for the ODC if they:
Are age 17 or older, or
Are under 19, or under 24 if a full-time student, or
Are any age if permanently and totally disabled
They must also:
Have lived with you for more than half the year
Be a U.S. citizen, U.S. national, or resident alien
Not have provided more than half of their own support
Option 2: Qualifying relatives (like a parent or other family member)
A dependent may qualify for the ODC as a qualifying relative if they meet all of these rules:
They are not your qualifying child (and not anyone else’s qualifying child)
They are related to you or lived with you all year as a member of your household
Their gross income was under $5,050 for the year
You provided more than half of their financial support
They are a U.S. citizen, U.S. national, or resident alien
Common examples include a parent, grandparent, sibling, or other supported relative.
How do these dependent credits compare?
Credit | Max amount | Refundable? | Who it’s for |
Child Tax Credit (CTC) | $2,200 | $1,700 | Children under 17 |
Additional Child Tax Credit (ACTC) | Up to $1,600 | Yes | Same qualifying children as CTC |
Credit for Other Dependents (ODC) | $500 | No | Dependents who don’t qualify for CTC |
Quick recap: which dependent credits can increase your refund?
Some dependent-related credits can only reduce what you owe. Others may increase your refund.
Can increase your refund:
Additional Child Tax Credit (ACTC), if you meet the income requirements
Cannot increase your refund:
Child Tax Credit (CTC)
Credit for Other Dependents (ODC)
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
Any third-party links are provided for informational purposes only. The third parties and their sites are not endorsed by April and April is not responsible for, and has no control over, their content, privacy policies, or terms of service.
Article searchable by terms: Child tax credit, CTC, Credit for other dependents, ODC, Additional child tax credit, ACTC,