The now passed GOP/Trump tax bill contains a little known but important $500 credit for non-child dependents – e.g elderly or disabled dependents or children over 17. This credit is to provide some relief to those families who will lose the now defunct personal exemption and are not eligible for the expanded Child Tax Credit (CTC). Both the CTC and non-child credit can be claimed for eligible dependents from 2018 onwards (taxes filed in 2019).
Like the CTC, this $500 “non-child” credit is subject to income eligibility thresholds and will phase out (reduce in value) for for those with incomes (AGI) above $200,000 (single) and $400,000 (married).
This credit was originally $300 in the house and Senate bills (where it was called a flexibility credit), but was increased to $500 in the final bill sent to the President for signing into law. Note however that the CTC and non-child credit both expire at the end of 2025, unless further extended by the Congress at that time.
This article was updated on December 21