For Universal Credit (UC), a child is generally defined as anyone under 16, or a "qualifying young person" aged 16 to 19 (up to 31 August after their 19th birthday) who is in full-time, non-advanced education or approved training. The child must live with you to qualify for the child element.
Child Tax Credit and Universal Credit can include an amount for a 16-19 year old as your dependent child if they count as a 'Qualifying Young Person'. Only include a 16-19 as a child in the calculator if they are covered by the rules below.
As well as the monthly standard allowance, you may receive an amount, called the child element, for children who live with you. The child element of your Universal Credit payment will depend on how many children you have and the date they were born.
Credit for Child and Dependent Care Expenses – a qualifying child must be under the age of 13 or permanently and totally disabled. A qualifying child is determined without regard to the exception for children of divorced or separated parents and the exception for kidnapped children.
If you get Universal Credit, you could get an extra amount to help support your children if they normally live with you. Universal Credit pays the extra amount for your first and second children. You are only entitled to extra payments for third or subsequent children if exceptions apply.
Key Takeaways
The IRS defines a dependent as a qualifying child (under age 19 or under 24 if a full-time student, or any age if permanently and totally disabled) or a qualifying relative. A qualifying dependent cannot provide more than half of their own annual support.
All claimants must provide evidence of childcare costs to claim them in Universal Credit, except claimants who have been paid upfront childcare costs through Page 5 Flexible Support Fund (FSF).
UCRs assess the entitlements and circumstances of Universal Credit (UC) claims that are at risk of being incorrect, detecting unreported changes in circumstances and correcting claims retrospectively to ensure claimants are receiving the right payment and support. This can include finding over and underpayments.
Universal Credit uses the Child Benefit System (CBS) and LEV to determine if the claimant has responsibility for a child in order to avoid delays to payments for children. However, not all children can be verified in this way which is when further evidence will be required.
You need to be able to verify childcare expenses in case of an audit. If you don't have proof that you paid these expenses, you can't claim the credit. You don't have to bring the receipts to your tax pro or mail them with your return. Just keep them with your personal records for at least three years.
Report any changes to your child's circumstances (e.g. leaving education, starting work, moving out) in your Universal Credit online account. If your child leaves education or training, or turns 20, your support will change, so it's a good idea to try to plan ahead where possible.
You generally cannot claim the main Child Tax Credit (CTC) for an 18-year-old because they must be under 17, but you may qualify for the Credit for Other Dependents (ODC), which provides a nonrefundable credit of up to $500 for dependents who don't meet CTC rules, including those age 17 and older, like your 18-year-old. For the ODC, the dependent must still meet tests like being your relative, living with you for over half the year (with exceptions), and not providing more than half their own support, and they need a Social Security Number (SSN).
Yes, you likely can claim your daughter as a dependent even if she made over $4,000, as long as she qualifies as a Qualifying Child (usually under 24 and a student), because income isn't a strict limit for Qualifying Children, but you must provide over half her support. If she isn't your Qualifying Child (e.g., over 24 and not disabled), she'd need to meet the Qualifying Relative test, which does have a gross income limit (less than $5,050 for 2024, $5,200 for 2025), meaning she'd likely be disqualified.
Yes, you can claim your child as a dependent in the year they turn 18, provided they meet the IRS Qualifying Child tests, especially the age, residency, and support rules, which generally allow claiming a child under 19 or a full-time student under 24 at year-end, living with you, and receiving more than half their support from you. The key is that they must meet the age requirement at the end of the calendar year, so if they are 18 on December 31st and meet the other tests, they're generally good to go.
You can get Universal Credit if you're living with other people but it might affect how much you get. For example, living with parents might mean you get less help with housing costs. You can get Universal Credit if you're self-employed - the application process is the same.
When Universal Credit rates take effect (2025/26) Benefit rates change each year in April. This year benefit rates officially go up on 6 April (beginning of 2025/26 tax year). For many benefits, the new rates will take effect from 7 April.
Universal Credit
Yes, U.S. citizens and green card holders living abroad can claim the Child Tax Credit if they meet all eligibility requirements. Your physical location doesn't disqualify you from this benefit.
What can I claim when I have a child?
You must have earned income of at least $2,500 to be eligible for the ACTC. You qualify for the full amount of the Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return).
You lose the Child Tax Credit (CTC) at age 17 because federal tax law specifies the credit applies to children under age 17 at the end of the tax year; once a child turns 17, they "age out" of this specific credit, though they might qualify for the smaller Credit for Other Dependents ($500) or remain a standard dependent for other tax benefits. This age cutoff isn't based on student status or living situation (which allow them to remain dependents), but is a strict IRS rule for the CTC.
Qualified expenses include amounts paid for household services and care of the qualifying person while you worked or looked for work. Child support payments are not qualified expenses.