Can You Claim a Child Born in December?

Claiming a child on your tax return can offer various benefits for taxpayers. These benefits often come in the form of tax credits, which directly reduce the amount of tax owed, or even result in a refund. Understanding the qualifications for claiming a child is important for accessing these financial advantages. The criteria for a qualifying child are specific, ensuring that tax benefits are applied appropriately based on family circumstances.

General Dependency Rules

To claim a child for tax purposes, the child must generally meet several tests to be considered a “qualifying child.” The Relationship Test specifies that the child must be your son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of them. An adopted child is also included in this definition. The Age Test requires the child to be under age 19 at the end of the tax year, or under age 24 if they are a full-time student. There is an exception for individuals who are permanently and totally disabled, who can qualify regardless of age.

The Residency Test stipulates that the child must have lived with the taxpayer for more than half of the tax year. Temporary absences for reasons such as schooling, medical care, or vacation are typically counted as time lived with the taxpayer. The Support Test mandates that the child must not have provided more than half of their own financial support for the year.

Finally, the Joint Return Test requires 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. All five of these tests must be met for a child to be considered a qualifying child for most tax benefits.

Specific Considerations for Newborns

For tax purposes, a child born at any point during the tax year, even on the very last day, is considered to have lived with the taxpayer for the entire year for the residency test. This means a December birth date does not prevent a child from being claimed as a qualifying child for that tax year, provided all other dependency rules are satisfied.

To claim a newborn for certain tax benefits, such as the Child Tax Credit, the child must have a valid Social Security Number (SSN) by the tax filing deadline, including extensions. An SSN can typically be obtained by applying at the hospital at birth or directly through the Social Security Administration (SSA) by completing Form SS-5 and submitting required documents.

Common Tax Benefits for Qualifying Children

The Child Tax Credit (CTC) is a significant benefit, designed to help families with the costs of raising children. For the 2024 tax year, this credit can be worth up to $2,000 per qualifying child. A portion of this credit, known as the Additional Child Tax Credit, may be refundable, meaning taxpayers could receive a refund even if they owe no tax, up to $1,700 per qualifying child for 2024. To claim the CTC, the child must be under age 17 at the end of the tax year and have a valid SSN.

Another benefit is the Credit for Other Dependents, which provides up to $500 for each qualifying dependent who does not qualify for the Child Tax Credit. This non-refundable credit can apply to older children, adult dependents, or dependents who have an Individual Taxpayer Identification Number (ITIN) instead of an SSN. This credit directly reduces the amount of tax owed.

The Earned Income Tax Credit (EITC) can also be increased by having a qualifying child. This credit is designed to support low- and moderate-income working individuals and families. While the EITC has its own set of income and other eligibility criteria, a qualifying child can significantly raise the amount of credit a taxpayer may receive.

The Child and Dependent Care Credit assists taxpayers who pay for the care of a qualifying child to allow them to work or look for work. This credit is for expenses paid for the care of a dependent under age 13. The credit amount is a percentage of qualifying expenses, with a maximum of $3,000 for one child or dependent, and $6,000 for two or more. This credit is typically non-refundable.