Aging Out of the Child Tax Credit | What You Should Know

May, 06 2025 by Karen Thomas-Brandt, EA

The other day, my neighbor and I were discussing her tax return, and she expressed concern over the fact that she was losing a dependent this year. I know her well and know her oldest child is only 17, so I was surprised and asked her more about it. It turns out she assumed that because her child turned 17 last year and no longer qualified her for the child tax credit, she could not claim him as a dependent anymore. I explained to her that this is not the case, and she said, “But if I can’t get child tax credit for him, what’s the benefit of claiming him?” Great question!

While it is true that once your child turns 17, they no longer qualify you for the child tax credit (or additional child tax credit), CTC (or ACTC), many tax benefits can still be claimed with that child as your dependent.
 

When does my child age out of the child tax credit?

The year your child turns 17, you will no longer be eligible to receive a child tax credit (or additional child tax credit) for that child. Unfortunately, age is an all-or-nothing qualification, which means you cannot get the credit for part of the year (e.g., if your child turns 17 in December, they are considered 17 for the whole year). For many of us, this is a significant loss of up to $2,000! Losing this credit could result in a balance due rather than a refund for some taxpayers.
 

So why should I still claim my child?

When your child turns 17, they will likely still live with you, and you will support them. Most likely, this means they will be your dependent, and you are the only one entitled to claim them as a dependent on your tax return. Generally, you can claim your child as a dependent up until age 19 (or age 24, if they are a full-time student), and any age if your child is permanently and totally disabled.

Before the Tax Cuts and Jobs Act (TCJA), you could get a dependency exemption if you had a dependent on your return (even after they turned 17), which could lower your taxable income. However, TCJA suspended the dependency exemption for tax years 2018 through 2025.

So why should I still claim my child, you may ask? Even though you can’t get a child tax credit (or additional child tax credit) or dependency exemption, you may be able to take advantage of other tax benefits, including:

• Other Dependent Credit (ODC) or Credit for Other Dependents
• Head of Household filing status (HOH)
• Earned Income Credit (EIC)
• American Opportunity Credit (AOC) or
• Lifetime Learning Credit (LLC)

Let’s review each of these.
 

Other Dependent Credit (ODC) or Credit for Other Dependents

With the removal of the dependent exemption deduction, the Tax Cuts and Jobs Act of 2017 implemented a tax credit for tax years 2018 through 2025 for “other dependents” to replace the loss of the exemption. The ODC allows the taxpayer to claim a $500 tax credit for qualifying dependents who are not qualifying children for purposes of the child tax credit (or additional child tax credit). Please note that not only is the amount of the ODC smaller than the CTC, but it is also a non-refundable credit. This means you can only benefit from the ODC if you have a tax liability.
 

Head of Household filing status (HOH)

A child who ages out of the child tax credit (or additional child tax credit) can still qualify you for the Head of Household filing status. This can mean a larger standard deduction and a more favorable tax bracket (compared to the Single filing status) for you.
 

Earned Income Credit (EIC)

A child who ages out of the child tax credit (or additional child tax credit) can still qualify you for the Earned Income Credit. This is a refundable credit (meaning you can receive it, even if you have no tax liability) and can be substantial, if you qualify.
 

American Opportunity Credit (AOC)/Lifetime Learning Credit (LLC)

Education credits are another tax benefit you may be able to claim, even after your child ages out of the child tax credit (or additional child tax credit). As a matter of fact, most kids won’t qualify for these credits until after age 18, as these credits generally apply for higher education expenses. The AOC can be as much as $2,500, a portion of which can be refundable; the LLC can be as much as $2,000, which is non-refundable.

While it can be a big financial hit when a child ages out of the child tax credit (or additional child tax credit), there are other valuable tax deductions and credits available to taxpayers. If you find yourself facing an audit for the child tax credit (or additional child tax credit), don't hesitate to contact us. TaxAudit’s Audit Defense provides taxpayers with peace of mind if they receive a notice from the IRS or state tax agency or if their return is selected for audit. To learn more about TaxAudit’s prepaid Audit Defense, please click here. 

To learn more about some of the tax benefits listed in this blog, please see the following blogs:

What is a Refundable Tax Credit?

What is a Nonrefundable Tax Credit?

Can I Deduct Education Expenses for My Dependent?

When Should I Stop Claiming My Child as a Dependent?