Can I Claim My Unborn Child as a Dependent?
Navigate tax rules for claiming dependents. Discover the specific requirements and timing for a child to qualify for tax benefits.
Taxpayers often seek to understand how life events, such as pregnancy, impact their tax obligations and potential benefits. A common question arises regarding the ability to claim an unborn child as a dependent on a tax return. Tax laws provide specific guidelines for who qualifies as a dependent, which is important for accurate tax filing and claiming available credits and deductions.
General Requirements for Claiming a Dependent
To claim a person as a dependent for tax purposes, the Internal Revenue Service (IRS) outlines specific criteria. The IRS differentiates between a “qualifying child” and a “qualifying relative.” For children, the “qualifying child” criteria apply, involving five main tests.
The first is the relationship test, which requires the child to be your son, daughter, stepchild, eligible foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of them, such as a grandchild.
The age test specifies that the child must be under age 19 at the end of the tax year, or under age 24 if a full-time student, and younger than you (or your spouse if filing jointly). There is no age limit if the child is permanently and totally disabled.
The residency test requires the child to have lived with you for more than half of the year. Exceptions exist for temporary absences due to special circumstances like education, illness, military service, or vacation. The support test stipulates that the child must not have provided more than half of their own support for the year. This means the taxpayer must have contributed more than 50% of the child’s financial needs. Finally, the joint return test states that the child cannot file a joint tax return for the year.
The Birth Requirement for Dependent Status
A common misconception among expectant parents is whether an unborn child can be claimed as a dependent. For a child to be considered a dependent for tax purposes, they must be born alive and live for at least some portion of the tax year. The IRS requires proof of a live birth, typically shown by an official document such as a birth certificate.
To claim a child as a dependent, they must have a valid Social Security number (SSN). Without an SSN, a child generally cannot be claimed for certain tax credits, such as the Child Tax Credit. In some cases, an Adoption Taxpayer Identification Number (ATIN) or Individual Taxpayer Identification Number (ITIN) may be used.
Tax Credits and Filing Status Related to Dependents
Once a child meets the criteria to be a qualifying dependent, taxpayers may become eligible for specific tax provisions. The Child Tax Credit (CTC) is a benefit, offering up to $2,000 per qualifying child for the 2024 tax year, provided they are under age 17 at the end of the tax year and have a valid SSN. This credit begins to phase out for higher income levels, specifically when modified adjusted gross income exceeds $200,000 for single filers or $400,000 for those married filing jointly.
For dependents who do not qualify for the Child Tax Credit, such as older children or other relatives, the Credit for Other Dependents (ODC) may be available. This credit can provide up to $500 for each qualifying dependent. Eligibility for the ODC requires the dependent to be claimed on the taxpayer’s return and not qualify for the CTC. This credit also has income phase-out thresholds.
Having a qualifying child can also impact a taxpayer’s filing status, potentially allowing them to file as Head of Household. This filing status generally provides a lower tax rate and a higher standard deduction compared to filing as single. To qualify for Head of Household, the taxpayer must be unmarried or considered unmarried on the last day of the tax year, pay more than half the cost of keeping up a home, and have a qualifying person, such as a child, live with them in that home for more than half the year.