Tax Guide 

Other Topics

Dependents, Child Tax Credit, Dependent Care Credit, Child Tax Return, Nanny Tax

Dependents

All dependents must have a Social Security number (SSN). If your dependent is a nonresident alien who is not eligible for an SSN, you must list the dependent’s Individual Taxpayer Identification Number (ITIN). To apply for an ITIN, file Form W‑7 with your tax return.

Children generally have the same citizenship or residency status as their parents. If you were a U.S. citizen when your child was born, your child is generally a U.S. citizen—even if born abroad, even if the other parent is a nonresident alien, and even if the child lives abroad.

General Rules for All Dependents

A person may be claimed as a dependent only if:

• They are a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Mexico or Canada

• They are not claimed as a dependent by anyone else

• They did not file a joint return unless only to claim a refund and neither spouse would owe tax filing separately

• They are either a qualifying child or a qualifying relative

If a person meets all qualifying child tests, they are a qualifying child even if they also meet the relative rules. If they fail the qualifying child tests, check the qualifying relative rules. If they fail both, they cannot be claimed.

Qualifying Child vs. Qualifying Relative

College Students Living Away from Home

A college student is still a qualifying child if:

• Time away at school is a temporary absence, so they are treated as living with you.

• They are under age 24 at year‑end and a full‑time student for at least 5 months.

• They did not provide more than half of their own support.

Foreign students

Students on an F, J, M or Q visa are not considered tax residents for their first 5 years on the visa, and so cannot be claimed as dependents.

Nonresidents (Form 1040NR)  

Nonresident aliens generally cannot claim dependents except certain residents of Canada or Mexico, and certain students/apprentices from South Korea or India under treaty rules.

Child Tax Credit (2025)

• Maximum credit: $2,200 per qualifying child under age 17

• Up to $1,700 may be refundable as the Additional Child Tax Credit

• Full credit available if MAGI is:
      $400,000 or below (married filing jointly)
      $200,000 or below (all other filers)

• Credit phases out by $50 per $1,000 of income above the threshold

• Child must have an SSN issued before the return due date

• Child must be a U.S. citizen, U.S. national, or U.S. resident alien

• Child must meet relationship, residency, and support rules

• Child must not have provided more than half of their own support

Child Tax Credit for Americans Abroad

To qualify for the Child Tax Credit while living abroad:

• You must have taxable earned income on your U.S. return

• If you exclude all income using the Foreign Earned Income Exclusion (FEIE), you cannot claim the credit

• If you exclude some but not all income, you may claim the nonrefundable portion but not the refundable Additional Child Tax Credit

• Using the Foreign Tax Credit (FTC) instead of FEIE may allow access to the refundable portion

• Revoking the FEIE triggers a 5‑year restriction on re‑claiming it, so the decision must be evaluated carefully

Credit for Other Dependents

A $500 nonrefundable credit is available for dependents who are not qualifying children. This includes:

• Children age 17 or older

• Parents and other qualifying relatives

• Dependents with an ITIN

• Individuals meeting the qualifying relative rules

Phase‑out thresholds (same as the Child Tax Credit)

Dependent Care Credit (2025)

If you paid for care so you could work, look for work, or attend school, you may claim:

• Up to $3,000 of expenses for one child under 13

• Up to $6,000 for two or more children under 13

The credit is nonrefundable in 2025.

Qualifying Expenses

• Paid in 2025 for 2025 care, or prepaid in 2024 for 2025 care

• Both spouses must have earned income unless one is a full‑time student for at least 5 months or disabled

• Child must be under 13 or unable to care for themselves

• Eligible expenses include preschool, nursery school, day camp, before/after‑school care, babysitters, vacation care programs

• School tuition above preschool does not qualify

Example 1. 
Joe is 20, single, full-time college student, not blind, and claimed as a dependent.

Interest income:  $200
Wages:  $2,750
Earned income + $450 = $3,200
Gross income = $2,950

Since $2,950 is less than $3,200, Joe does not need to file a return.

Example 2. 
Same facts, except Joe has $600 interest income.

Gross income = $3,350
Earned income + $450 = $3,200

Since $3,350 is greater than $3,200, Joe must file a return.

Election to Report Child's Income on Parent's Tax Return (Form 8814)

You may elect to report your child’s income on your own return if all of the following are true:

• Child is under age 19, or under 24 if a full‑time student, at the end of 2025.

• Only income was from interest and dividends, including capital gain distributions and Alaska Permanent Fund dividends.

• Child’s gross income for 2025 was less than $13,500.

• Child otherwise must file.

• Child does not file a joint return.

• No estimated tax payments or withholding

• You meet Form 8814 requirements.

This election may result in up to $135 more tax due to how income between $1,350 and $2,700 is taxed.

Kiddie Tax (2025)

• The first $1,350 of a child’s unearned income is covered by the standard deduction.

• The next $1,350 is taxed at the child’s rate.

• Any unearned income over $2,700 is taxed at the parent’s marginal tax rate.

Adoption Credit

Tuition Credits for Dependents

Nanny Tax