Can You Claim an Unborn Child on Your Taxes?

Federal tax laws regarding a growing family can be complex, especially concerning the timing of tax benefits. This article clarifies how tax regulations consider an unborn child for various deductions and credits. Understanding these rules helps ensure compliance and maximize eligible benefits.

Eligibility for Tax Benefits

Under federal tax law, an unborn child does not qualify as a dependent for tax purposes. To be claimed as a dependent, a child must be born alive and have a Social Security number (SSN) by the end of the tax year for which the claim is made. This means that even if a pregnancy is well into its final stages on December 31st, the child cannot be claimed until they are born. The Internal Revenue Service (IRS) defines a qualifying child based on several criteria, including age, relationship, residency, and support. If a child is born, for instance, on December 31st, they are considered to have lived with the taxpayer for the entire year for dependent purposes, allowing them to be claimed for that tax year.

Tax Benefits for Newborns

Once a child is born and meets dependent qualifications, parents may be eligible for significant federal tax benefits. The Child Tax Credit (CTC) is a primary benefit, offering up to $2,000 per qualifying child for the 2024 tax year. This credit helps offset the costs of raising children and reduces a family’s tax liability. To qualify, the child must be under age 17 at the end of the tax year, have a valid Social Security number, and generally live with the taxpayer for more than half the year.

A portion of this credit, up to $1,700 per child for 2024, may be refundable through the Additional Child Tax Credit (ACTC) if certain income thresholds are met, meaning families could receive a refund even if they owe no tax. The full $2,000 CTC begins to phase out for single filers with a modified adjusted gross income (MAGI) exceeding $200,000, and for married couples filing jointly with a MAGI over $400,000.

If a child does not meet all the criteria for the Child Tax Credit, such as being age 17 or older, parents might still qualify for the Credit for Other Dependents. This non-refundable credit can provide up to $500 for each qualifying dependent and has similar income phase-out limits.

Another important benefit is the Earned Income Tax Credit (EITC), which provides a refundable credit for low- to moderate-income working individuals and families. Having a qualifying child significantly increases the potential EITC amount. For 2024, the maximum EITC ranges from $632 for those without children to $7,830 for families with three or more qualifying children, depending on income and filing status.

For the EITC, a qualifying child must meet specific relationship, age, and residency tests, typically living with the taxpayer for more than half the year. The child must be under age 19, or under 24 if a full-time student, unless permanently and totally disabled.

Tax Considerations for Pregnancy Expenses

Medical expenses incurred during pregnancy and childbirth can be considered for a tax deduction. These expenses are includible as medical care costs for the taxpayer, their spouse, or a dependent. To deduct these expenses, taxpayers must itemize deductions on their federal income tax return.

Only the amount of qualified medical expenses exceeding 7.5% of the taxpayer’s adjusted gross income (AGI) is deductible. For example, if a taxpayer’s AGI is $50,000, only medical expenses over $3,750 would be potentially deductible. This threshold applies to the total medical expenses for the household, not just those related to pregnancy.

Information and Documentation for Claiming a Child

To successfully claim a born child as a dependent on a federal tax return, specific information and documentation are necessary. The easiest way to obtain a Social Security number (SSN) for a newborn is by applying at the hospital when completing the birth registration form. The hospital can forward the information to the Social Security Administration (SSA), and the SSN card is typically mailed within a few weeks.

If not applied for at the hospital, parents can complete Form SS-5, Application for a Social Security Card, and submit it with required identity and citizenship documents to a local SSA office. In addition to the SSN, taxpayers will need the child’s full legal name, date of birth, and their relationship to the child to accurately complete tax forms. Maintaining records of the child’s birth certificate and SSN card is crucial for tax filing and other administrative purposes.