Life Tax Benefits for Having Dependents Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Ginita Wall Published Jun 7, 2024 3 min read Reviewed by Jotika Teli, CPA Lena Hanna, CPA Even though the dependency exemption was eliminated under the tax reform, there are still some tax benefits you can take advantage of to maximize your tax refund if you have dependents. These tax benefits can significantly reduce or even eliminate your tax liability. Some of the credits discussed are refundable, which means that even if you don’t have any tax liability to offset, you will receive a refund. While we’ll help you to understand the tax benefits of having dependents below, don’t worry about remembering these rules come tax time. TurboTax will ask you simple questions about you and give you the tax deductions and credits you’re eligible for based on your answers. Child Tax Credit: You may be eligible for the Child Tax Credit, which is a tax credit that you get for your dependent kids. It’s even better than a tax deduction because it reduces your taxes dollar-for-dollar. For tax year 2024 (the taxes you file in 2025), the Child Tax Credit is worth up to $2,000 per qualifying child under age 17. You will be eligible for the full credit if your modified adjusted gross income is $400,000 or under for those who are married filing jointly and $200,000 or under for all other filers. For tax year 2024, $1,700 of this credit is refundable, up $100 from tax year 2023. Other Dependent Credit: If you don’t qualify for the Child Tax Credit and your dependent child is over 17 or you support a friend or a relative, you may still be able to claim the Other Dependent Credit of up to $500 per qualifying person. The credit begins to phase out if your adjusted gross income is greater than $200,000 (or $400,000 for married filing joint couples). For tax year 2024, this credit is nonrefundable. Child and Dependent Care Credit: If you pay for childcare, there is a tax credit that you may qualify for at tax time. If you are working or actively seeking work, and you pay childcare for your dependent who is under the age of 13 (no age limit if disabled), you can claim the Child and Dependent Care Credit. Nursery school, private kindergarten, after-school programs, daycare, and even summer and winter day camps are all qualifying expenses. This credit is a dollar-for-dollar reduction of your taxes based on your childcare expenses and is a nonrefundable credit. The expense limit for tax year 2024 is $3,000 for one qualifying individual and $6,000 for two or more qualifying individuals. The percentage used to calculate the credit is up to 35% of expenses, so the maximum credit is up to $1,050 for one qualifying individual or up to $2,100 for two or more qualifying individuals. This credit is reduced for taxpayers with income over $15,000. Earned Income Tax Credit (EITC): There’s a special tax credit available if your wages or self-employment income are below a certain income level. The amount of credit you receive is based on your income, filing status, and how many qualifying kids you have. The refundable tax credit you can receive ranges from a maximum of $7,830 if you have three or more children to $632 if you have no children for tax year 2024. Unlike some other tax credits, the Earned Income Tax Credit is refundable, so if the credit is greater than the tax you owe, you can still receive the difference as a tax refund. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed. Previous Post How to File Taxes in Multiple States After Moving Next Post Happy National Children’s Day! Here’s What Having a Child Means… Written by Ginita Wall More from Ginita Wall 92 responses to “Tax Benefits for Having Dependents” « Older Comments Newer Comments » My daughter got her 1099 , when she filed she owes the irs and gets no credits for her 2 girls o op r head of house hold and single, why is that can someone enlighten me Reply Jan 2016…I havent worked in 2 years can my girlfriend claim me? Im 30 years old how much can she get by claimimg we been been together for 4 years we are not married but she has been taking care of me can she claim head of household to? We been at our place for 6 months or so let me know thanks Reply So I heard that claiming 2 kids is the same as claiming 3..??? Or that I can claim however many but only get amount of claiming2 or something like that…I just had my 3rd baby last year so just wanna know…also what’s the max for each child under the age of 7 Reply Hey so I have made 9,686.44 I claimed 2 all year because I did need more in my checks I am claiming 2 children when I file I only had 114.92 taken out on my federal and 289.44 in state how much do you think I will get back also I pay 50$ a week for childcare please help let me know Reply I only worked for 3 months in filing head of household and I have two kids. Do you think I will get back more then 4,000 Reply Hi, It’s hard to say without knowing your income, other tax deductions and credits, and how much taxes were withheld. If you have 2 dependents you will be eligible for a dependent exemption of $4,000 for each child which will be deducted from your income. You will also be eligible for a Child Tax Credit of up to $1,000 per child. You may be eligible for the Earned Income Tax Credit of up to $5,548. There are many tax credits and deductions that may get you more money back. TurboTax walks you through all of the tax deductions and credits you are eligible for. Thank you, Lisa Greene-Lewis Reply I got to file a 1099 for 12,535 it only me and my 11 year old. how much should I get back Reply On what line item under deductions do you put child support paid and expenses that I paid for my son Reply Hi Betty, Child support payments are not deductible by the payee and are not taxable to the person receiving them. You can deduct alimony paid and the person receiving alimony has to include it in their taxable income. If your son meets the age qualifications to be a qualifying child (under 19 and 24 if a student) and he does not provide over half of his own support and lives with you for more than half of the year then you can claim a dependent exemption for him and may be eligible for other credits and deductions related to your child like the Earned Income Tax Credit, Child Tax Credit, and the Child and Dependent Care Credit. Thank you, Lisa Greene-Lewis Reply I worked & earned some income but filed exempt so no taxes were actually taken but can I still claim my girlfriends child as a dependent & get some money back? Reply If I’m not claiming my son this year, I’m letting his dad claim him, can I still deduct childcare expenses? I thought I could but if so, how do I do that on Turbo Tax online? When I select Child and Dependent Care Credit, it will not let me select a name to enter the expenses because it shows my son’s status as “Nondependent”. Reply So can my bf file and have my baby as a dependent and my brother in law he only made like 2,000 or is that not enough tgis was only 1 w2 form ?? Btw my baby is 8months first year using him as a dependent also herd we can get 2,300 ? Is it truee Reply « Older Comments Newer Comments » Leave a ReplyCancel reply Browse Related Articles Income Tax by State Arkansas State Income Tax in 2025: A Guide Family Child Tax Benefits: How Parents Can Save on Taxes Family What Is a Dependent? An Introductory Guide to Dependents Income Tax by State Illinois State Income Tax in 2025: A Guide Tax Deductions and Credits Tax Credits and Deductions for Families Tax Deductions and Credits Multigenerational Families: Top Family Tax Deductions and Credits You Should Not Miss Tax Deductions and Credits Family Taxes: Take Advantage of Tax Savings Family How Child Support Affects Your Taxes Family Can I Claim My Parent as a Dependent? Tax Planning 8 Last Minute Tax Tips to Make the Tax Extension Deadline
My daughter got her 1099 , when she filed she owes the irs and gets no credits for her 2 girls o op r head of house hold and single, why is that can someone enlighten me Reply
Jan 2016…I havent worked in 2 years can my girlfriend claim me? Im 30 years old how much can she get by claimimg we been been together for 4 years we are not married but she has been taking care of me can she claim head of household to? We been at our place for 6 months or so let me know thanks Reply
So I heard that claiming 2 kids is the same as claiming 3..??? Or that I can claim however many but only get amount of claiming2 or something like that…I just had my 3rd baby last year so just wanna know…also what’s the max for each child under the age of 7 Reply
Hey so I have made 9,686.44 I claimed 2 all year because I did need more in my checks I am claiming 2 children when I file I only had 114.92 taken out on my federal and 289.44 in state how much do you think I will get back also I pay 50$ a week for childcare please help let me know Reply
I only worked for 3 months in filing head of household and I have two kids. Do you think I will get back more then 4,000 Reply
Hi, It’s hard to say without knowing your income, other tax deductions and credits, and how much taxes were withheld. If you have 2 dependents you will be eligible for a dependent exemption of $4,000 for each child which will be deducted from your income. You will also be eligible for a Child Tax Credit of up to $1,000 per child. You may be eligible for the Earned Income Tax Credit of up to $5,548. There are many tax credits and deductions that may get you more money back. TurboTax walks you through all of the tax deductions and credits you are eligible for. Thank you, Lisa Greene-Lewis Reply
On what line item under deductions do you put child support paid and expenses that I paid for my son Reply
Hi Betty, Child support payments are not deductible by the payee and are not taxable to the person receiving them. You can deduct alimony paid and the person receiving alimony has to include it in their taxable income. If your son meets the age qualifications to be a qualifying child (under 19 and 24 if a student) and he does not provide over half of his own support and lives with you for more than half of the year then you can claim a dependent exemption for him and may be eligible for other credits and deductions related to your child like the Earned Income Tax Credit, Child Tax Credit, and the Child and Dependent Care Credit. Thank you, Lisa Greene-Lewis Reply
I worked & earned some income but filed exempt so no taxes were actually taken but can I still claim my girlfriends child as a dependent & get some money back? Reply
If I’m not claiming my son this year, I’m letting his dad claim him, can I still deduct childcare expenses? I thought I could but if so, how do I do that on Turbo Tax online? When I select Child and Dependent Care Credit, it will not let me select a name to enter the expenses because it shows my son’s status as “Nondependent”. Reply
So can my bf file and have my baby as a dependent and my brother in law he only made like 2,000 or is that not enough tgis was only 1 w2 form ?? Btw my baby is 8months first year using him as a dependent also herd we can get 2,300 ? Is it truee Reply