Can You Claim a Child While Pregnant?

Expecting a new addition to your family brings many questions, especially about finances and taxes. Understanding the Internal Revenue Service (IRS) guidelines for claiming dependents is an important part of preparing for your child’s arrival.

The “Born Alive” Rule for Dependents

The ability to claim a child as a dependent for tax purposes hinges on the federal “born alive” rule. This rule states that a child must be born alive during the tax year to be claimed. An unborn child, regardless of how far along the pregnancy is, cannot be claimed as a dependent. A child is considered born alive if state or local law treats them as such, which is verified by a document like a birth certificate.

Even if a child is born on December 31st, they are considered to have lived with you for the entire year for dependency purposes. The rule also addresses the difficult circumstance of a child who is born alive but passes away before the end of the tax year. In this situation, the parents are still permitted to claim the child as a dependent. For tax filing in this case, you may be instructed to write “DIED” in the space for the child’s Social Security number on Form 1040 if one was not issued.

Qualifying Child Tests for Tax Credits

Once the “born alive” rule is met, a child must also meet four additional tests to be considered a “qualifying child” for various tax credits. These tests are relationship, age, residency, and support. Meeting these criteria allows you to claim tax benefits like the Child Tax Credit and the Earned Income Tax Credit.

The relationship test requires the child to be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these individuals. 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 for at least five months of the year. There is no age limit for a child who is permanently and totally disabled.

The residency test requires that the child must have lived with you for more than half of the tax year. The support test stipulates that the child cannot have provided more than half of their own financial support during the year.

Pregnancy-Related Medical Expense Deductions

While an unborn child cannot be claimed as a dependent, expectant parents may find tax relief through the medical expense deduction. You can include payments for prenatal care, labor and delivery services, hospital stays, and prescribed medications as qualified medical expenses. This also extends to diagnostic tests, ultrasounds, breast pumps, and lactation supplies.

To benefit from this, you must itemize your deductions on Schedule A of your Form 1040 instead of taking the standard deduction. You can only deduct the amount of total medical expenses that exceeds 7.5% of your Adjusted Gross Income (AGI). For example, if your AGI is $60,000, you can only deduct medical expenses over $4,500. You must keep records of all out-of-pocket costs, as you cannot deduct any expenses reimbursed by insurance.

Obtaining a Social Security Number for Your Newborn

A Social Security Number (SSN) is required to claim your child as a dependent and access related tax credits. Failing to provide a valid SSN will result in the disallowance of the dependency claim.

The most convenient way to obtain an SSN for your baby is at the hospital when you provide information for the birth certificate. The birth registration form typically includes a question asking if you want to apply for an SSN. By checking “yes” and providing the parents’ SSNs, the information is forwarded to the Social Security Administration (SSA) automatically.

If you do not apply at the hospital, you must apply directly with the SSA. This involves completing Form SS-5, Application for a Social Security Card, and providing original documents that prove your baby’s age, identity, and U.S. citizenship. You will also need to provide proof of your own identity.