Can Non-U.S. Citizens Qualify for the Credit for Other Dependents?

Navigating the U.S. tax system can be complex, especially for non-citizens who may have dependents living abroad or in the U.S. One common question is whether non-U.S. citizens can claim the Credit for Other Dependents (ODC)—a tax benefit designed to provide financial relief for taxpayers supporting dependents who don’t qualify for the Child Tax Credit (CTC).

This article explores eligibility requirements, recent policy changes, and how global trends like immigration and economic displacement impact tax filings for non-citizens.

Understanding the Credit for Other Dependents

The Credit for Other Dependents (ODC) is a non-refundable tax credit worth up to $500 per qualifying dependent for tax years where it applies. Unlike the CTC, this credit isn’t restricted to children under 17—it can apply to older dependents, such as college students, elderly parents, or disabled relatives.

Who Qualifies as a Dependent?

For a non-U.S. citizen taxpayer to claim the ODC, the dependent must meet IRS criteria:

1. Relationship Test: The dependent must be a U.S. citizen, national, or resident alien (or a resident of Canada/Mexico).
2. Support Test: The taxpayer must provide over half of the dependent’s financial support.
3. Gross Income Test: The dependent’s gross income must be below $4,700 (2023 threshold).

Exception: Dependents with disabilities may bypass the gross income limit.

Can Non-Citizens Claim the ODC?

The short answer: It depends on residency status.

1. Resident Aliens (Green Card Holders & Substantial Presence Test)

• Eligible: If they meet IRS residency rules, they can claim the ODC like U.S. citizens.
• Dependent Location: Dependents can live abroad if they meet citizenship/residency requirements.

2. Nonresident Aliens (NRA)

• Generally Ineligible: NRAs cannot claim most U.S. tax credits, including the ODC.
• Exceptions: NRAs married to U.S. citizens/residents may elect to file jointly and qualify.

3. Mixed-Status Families

• A growing issue due to global migration trends.
• Example: A taxpayer with ITIN (Individual Taxpayer Identification Number) and a U.S.-citizen child may qualify for CTC but not ODC for a non-resident spouse.

Global Context: How Immigration Policies Affect Tax Credits

Recent geopolitical crises—like the Ukraine war, Venezuelan displacement, and Afghan evacuations—have increased the number of non-citizen dependents in the U.S. tax system.

Case Study: TPS Holders & Dependents

• Temporary Protected Status (TPS) recipients are often tax residents.
• If their dependents lack SSNs/ITINs, they may lose ODC eligibility.

IRS Enforcement Challenges

• Fraud concerns (e.g., inflated dependent claims) have led to stricter documentation rules.
• The 2025 IRS funding boost aims to improve oversight but may delay refunds for immigrant filers.

Practical Tips for Non-Citizen Taxpayers

1. Verify Dependent Residency Status

• Use IRS Form W-7 to obtain an ITIN for non-SSN dependents.
• Ensure dependents meet the "resident alien" definition if living abroad.

2. File the Right Forms

• Form 1040: Resident aliens use this to claim ODC.
• Form 1040-NR: NRAs typically can’t claim ODC but should check treaty exceptions.

3. Seek Professional Help

• Cross-border tax issues (e.g., supporting parents in India or Mexico) often require CPA guidance.

The Future of Dependent Credits in a Mobile World

With remote work globalization and climate migration rising, tax policies may adapt. Proposals include:
- Expanding ODC to non-resident dependents in allied countries.
- Creating a "global dependent" credit for multinational families.

For now, non-citizens must navigate existing rules carefully—every $500 credit counts.