Can You Claim a Baby Born in December on Your Taxes?

Parents often wonder if they can claim a newborn, especially one born late in the year, for the entire tax year. For tax purposes, a child born on December 31st is treated the same as a child born on January 1st. A baby born on the last day of the tax year is considered to have lived with you for the entire year, making you eligible for various tax benefits.

Qualifying a Child as a Dependent

To claim a child as a dependent, they must meet specific IRS criteria as a “qualifying child.” The qualifying child tests include relationship, age, residency, and support, along with a joint return test.

The relationship test requires the child to be your:
Son, daughter, stepchild, or foster child;
Brother, sister, half-brother, half-sister, stepbrother, or stepsister;
Or a descendant of any of them, such as a grandchild.
An adopted child is considered your own child for this purpose. The age test requires the child to be under age 19 at the end of the tax year, or under age 24 if they were a full-time student for at least five months of the year. There is no age limit if the child is permanently and totally disabled.

For the residency test, the child must have lived with you for more than half of the tax year. For newborns, a child born during the tax year is considered to have lived with you for the entire year. Temporary absences for special circumstances like medical care or school do not count against this requirement. The support test requires the child not to have provided more than half of their own financial support.

The joint return test stipulates that the child cannot file a joint tax return for the year. An exception applies if the child files a joint return solely to claim a refund of withheld income tax or estimated tax paid. Meeting these criteria allows you to claim your baby as a dependent.

Key Tax Benefits for Dependents

Claiming a qualifying child as a dependent offers several tax benefits. One of the most common is the Child Tax Credit (CTC). For the 2024 tax year, the Child Tax Credit can be worth up to $2,000 for each qualifying child.

A portion of the Child Tax Credit, known as the Additional Child Tax Credit (ACTC), is refundable, meaning you could receive money back even if it exceeds your tax liability. For 2024, the refundable portion of the ACTC is limited to $1,700 per qualifying child. To qualify for the full amount, your income must be at or below $200,000 for single filers or $400,000 for married couples filing jointly; the credit begins to phase out above these thresholds.

Another benefit is the Credit for Other Dependents, which provides a non-refundable credit of up to $500 for each dependent who does not qualify for the Child Tax Credit. This credit is available for dependents of any age, including those 18 or older, provided they have a Social Security number or Individual Taxpayer Identification Number. The credit begins to phase out for incomes above $200,000, or $400,000 for married couples filing jointly.

The Earned Income Tax Credit (EITC) can also be increased by having a qualifying child. This refundable credit is designed for low- to moderate-income workers and its amount varies based on income, filing status, and the number of qualifying children. For 2024, the maximum EITC ranges from $632 to $7,830, depending on your filing status and the number of children.

Parents may also be eligible for the Child and Dependent Care Credit if they pay for care so they can work or look for work. For 2024, you can count up to $3,000 in expenses for one qualifying person or up to $6,000 for two or more. The credit amount ranges from 20% to 35% of these expenses, depending on your adjusted gross income, with a maximum credit of $1,050 for one dependent and $2,100 for two or more.

Information Required for Claiming a Dependent

Claiming your baby on your tax return requires specific information. A Social Security Number (SSN) for the child is mandatory for tax purposes. The easiest way to obtain an SSN for a newborn is to apply at the hospital when providing information for the birth certificate. If not obtained at the hospital, you can apply at a Social Security Administration office by completing Form SS-5, Application for a Social Security Card, and providing proof of the child’s age, identity, and citizenship, as well as your own identity.

In addition to the SSN, you will need the child’s full name and date of birth. The relationship of the child to the taxpayer, such as son or daughter, is also a required data point. A birth certificate serves as proof of birth and age and should be kept for your records. For those claiming the Child and Dependent Care Credit, you will need the name, address, and Taxpayer Identification Number (TIN) of the care provider.

Steps for Claiming on Your Tax Return

Claiming your dependent on your tax return involves specific forms. You will enter your dependent’s information, including their name, Social Security Number, and relationship, in the “Dependents” section of Form 1040, U.S. Individual Income Tax Return.

To calculate and claim the Child Tax Credit and the Credit for Other Dependents, you will need to complete and attach Schedule 8812, Credits for Qualifying Children and Other Dependents, to your Form 1040. This schedule helps determine the exact amount of credit you are eligible to receive based on your income and the number of qualifying children. If you are eligible for the Earned Income Tax Credit with a qualifying child, you must also complete and attach Schedule EIC, Earned Income Credit, to your Form 1040. This schedule provides the IRS with details about your qualifying child or children to calculate your credit amount.

For taxpayers claiming the Child and Dependent Care Credit, Form 2441, Child and Dependent Care Expenses, is required. This form is used to report the expenses paid for care that allowed you to work or look for work, and it calculates the amount of the credit you can claim. Tax preparation software, professional tax preparers, or the IRS Free File program can assist in accurately completing and submitting these forms.