Quick Answer
The credit for each qualifying relative is $500 per person. This Credit for Other Dependents applies to dependents who don't qualify for the $2,000 Child Tax Credit, including elderly parents, adult children, siblings, and other relatives you support. The credit phases out starting at $200,000 income (single) or $400,000 (married filing jointly).
Best Answer
Robert Kim, CPA
Best for anyone supporting relatives who don't qualify for the Child Tax Credit
How much is the credit for qualifying relatives?
The credit for each qualifying relative is exactly $500 per person through the Credit for Other Dependents. According to IRS Publication 972, this non-refundable credit reduces your tax liability dollar-for-dollar for each qualifying relative you claim as a dependent.
Who counts as a qualifying relative?
A qualifying relative must meet these tests:
Example: Supporting multiple relatives
The Johnson family supports several relatives and qualifies for multiple credits:
Johnson family situation:
Total credits: $3,500
This saves the Johnsons $3,500 in taxes they would otherwise owe.
Income limits and phase-out rules
Phase-out example: If you're single with $205,000 income and one qualifying relative, your credit reduces from $500 to $250 ($50 × 5 = $250 reduction).
Support calculation details
To claim the credit, you must provide more than half of the relative's total support. Here's what counts:
Support you provide:
What doesn't count as support:
Complex family situations
Multiple support agreements: If you and siblings together support a parent, but no one provides more than 50% individually, you can use Form 2120. The person contributing more than 10% can claim the dependent if others agree in writing.
Divorced parents: The custodial parent typically claims children, but non-custodial parents can claim them with Form 8332.
Foster children: Placed by authorized agencies count as qualifying relatives if they live with you all year.
What you should do
First, calculate the total support you provided for each relative. Keep detailed records of expenses — housing costs, medical bills, groceries, utilities. If you provided more than 50% of their support and they meet the income test, claim them as dependents and take the $500 credit for each.
If you've been supporting relatives but not claiming them, you can amend previous tax returns for up to three years to claim missed credits.
[Use our refund estimator to see how much claiming qualifying relatives could increase your refund →]
Key takeaway: Each qualifying relative you support can reduce your tax bill by $500 through the Credit for Other Dependents — potentially saving thousands if you support multiple family members.
*Sources: [IRS Publication 972](https://www.irs.gov/pub/irs-pdf/p972.pdf), [IRS Publication 501](https://www.irs.gov/pub/irs-pdf/p501.pdf)*
Key Takeaway: The Credit for Other Dependents provides exactly $500 per qualifying relative you support, potentially saving thousands for families caring for elderly parents, adult children, or other relatives.
Credit amounts for different types of dependents
| Dependent Type | Credit Amount | Age Requirement | Income Limit | Must Live With You? |
|---|---|---|---|---|
| Qualifying Child | $2,000 | Under 17 | No limit | Yes (with exceptions) |
| Qualifying Child 17-18 | $500 | 17-18 | No limit | Yes (with exceptions) |
| College Student | $500 | 19-24 | Under $5,050 | No |
| Elderly Parent | $500 | No limit | Under $5,050 | No |
| Other Qualifying Relative | $500 | No limit | Under $5,050 | Yes (unless related) |
More Perspectives
Diana Flores, EA
Best for homeowners who have adult children, elderly parents, or other relatives living in their home
Housing support for relatives living with you
As a homeowner supporting relatives who live in your home, calculating the "support test" requires special attention to housing costs. The fair rental value of housing you provide counts as support — often the largest component.
Calculating housing support
If your relative lives with you, the support you provide includes:
Example: Your elderly father lives with you
Income limits for relatives in your home
Your relative's gross income must be under $5,050 to qualify. This is often the limiting factor for:
Documentation you should keep
Maintain records showing:
Multiple relatives in your home
If you support multiple relatives living with you, you can potentially claim $500 for each:
Each person must individually meet all five tests for qualifying relatives.
Key takeaway
Homeowners supporting relatives in their home often easily meet the "more than 50% support" test through housing costs alone, making the $500 credit per relative very attainable.
*Sources: [IRS Publication 501](https://www.irs.gov/pub/irs-pdf/p501.pdf)*
Key Takeaway: Homeowners can often easily claim the $500 credit for relatives living with them, as housing costs typically constitute more than half of the relative's total support.
Robert Kim, CPA
Best for adult children supporting elderly parents, whether living together or separately
Credit for supporting elderly parents
Many adult children unknowingly qualify for the $500 Credit for Other Dependents by supporting elderly parents. The credit applies whether your parent lives with you, in their own home, or in assisted living.
Common elderly parent scenarios
Scenario 1: Parent in assisted living
Scenario 2: Parent living independently
Scenario 3: Parent living with you
Income test complications
Your parent's gross income must be under $5,050. This creates challenges:
What counts as income:
What doesn't count:
Strategy tip: If your parent's income is slightly over $5,050, consider timing of IRA distributions or other income to qualify in alternating years.
Multiple support agreements
When siblings share parent support costs, use Form 2120:
Documentation for elderly parent support
Keep detailed records of:
Key takeaway
Supporting elderly parents often qualifies for the $500 Credit for Other Dependents per parent, but requires careful attention to the income test and support calculation.
*Sources: [IRS Publication 972](https://www.irs.gov/pub/irs-pdf/p972.pdf), [Form 2120](https://www.irs.gov/pub/irs-pdf/f2120.pdf)*
Key Takeaway: Adult children supporting elderly parents can claim a $500 credit per parent, provided the parent's income is under $5,050 and the adult child provides more than half the support.
Sources
- IRS Publication 972 — Child Tax Credit and Credit for Other Dependents
- IRS Publication 501 — Dependents, Standard Deduction, and Filing Information
- Form 2120 — Multiple Support Declaration
Related Questions
Reviewed by Robert Kim, CPA on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.