If My Baby Was Born in September Can I Claim on Taxes?

Welcoming a new baby brings joy and new experiences, including navigating tax implications. New parents often wonder how a newborn impacts their tax situation, especially if born later in the year. Understanding how to claim a new dependent can help you access valuable tax benefits. This guide covers eligibility, available credits, necessary preparations, and steps for claiming your child on federal income taxes.

Eligibility Requirements for Claiming a Child

To claim a child as a dependent for tax purposes, the child must meet several criteria to be considered a “qualifying child.” These include relationship, age, residency, support, and joint return tests. For the relationship test, 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.

For the age test, the child must be under 17 years old at the end of the tax year. An exception applies if the child is permanently and totally disabled, with no age limit. The residency test requires the child to have lived with you for over half of the tax year. A child born at any point during the tax year, even on December 31, is considered to have lived with the taxpayer for the entire year for this requirement. This means a baby born in September, or any other month, qualifies for the full year.

The support test dictates the child must not have provided more than half of their own financial support. The joint return test specifies the child cannot file a joint tax return, unless it is solely to claim a refund of withheld income tax or estimated tax paid.

Understanding Available Tax Benefits

Claiming a qualifying child can unlock several federal tax benefits, primarily tax credits. The Child Tax Credit (CTC) provides up to $2,200 per qualifying child for the 2025 tax year. To qualify, the child must be under 17 at year-end and have a valid Social Security Number (SSN). A portion, the Additional Child Tax Credit (ACTC), may be refundable, meaning you could receive money back even if you owe no tax. The refundable amount can be up to $1,700 per child for 2025, based on earned income thresholds.

The Credit for Other Dependents (ODC) offers a nonrefundable credit of up to $500 for each qualifying dependent not meeting CTC criteria. This credit applies to U.S. citizens, nationals, or resident aliens with an SSN or Individual Taxpayer Identification Number (ITIN). As a nonrefundable credit, it can reduce your tax liability to zero but will not generate a refund.

The Child and Dependent Care Credit helps recover childcare expenses if care was necessary for you (and your spouse, if filing jointly) to work or look for work. This credit ranges from 20% to 35% of qualified expenses, depending on your adjusted gross income. The maximum expenses considered are $3,000 for one qualifying person or $6,000 for two or more. To qualify, the care recipient must be a dependent under age 13 or a dependent of any age physically or mentally unable to care for themselves.

Families with qualifying children may also be eligible for the Earned Income Tax Credit (EITC). This refundable credit is designed for low- to moderate-income working individuals and families. The EITC amount varies based on income, marital status, and the number of qualifying children. For example, in 2024, the maximum credit for families with three or more children was $7,830.

Essential Information and Preparations

Before filing your tax return, gather specific information and documents to claim your new dependent and associated tax benefits. A valid Social Security Number (SSN) for your child is mandatory for claiming the Child Tax Credit and listing them as a dependent.

The easiest way to obtain an SSN for a newborn is by applying at the hospital when completing the birth registration form. If not applied for at the hospital, complete Form SS-5, Application for a Social Security Card, and submit it to the Social Security Administration (SSA). You will need to provide original documents proving your child’s age, identity, and U.S. citizenship, such as a birth certificate, along with proof of your own identity and relationship. The Social Security card usually arrives within one to six weeks. If you have not received the SSN by the tax filing deadline, you can file an extension using Form 4868.

If claiming the Child and Dependent Care Credit, collect specific information about your childcare provider. This includes their name, address, and Taxpayer Identification Number (TIN), which is either their Social Security Number or Employer Identification Number (EIN). Beyond dependent-specific details, ensure you have all income records, such as W-2s and 1099s, as your income level impacts eligibility for many tax credits.

Steps to Claiming on Your Tax Return

Once you have gathered all necessary information, claiming your new dependent on your tax return involves several steps. Your child will be listed as a dependent on your Form 1040, U.S. Individual Income Tax Return. In the designated dependent section, enter your child’s full name, Social Security Number, and their relationship to you.

To claim the Child Tax Credit and the Credit for Other Dependents, use Schedule 8812, Credits for Qualifying Children and Other Dependents. This schedule calculates your eligible credit amount, considering income limitations. The calculated credit is then transferred to your Form 1040, reducing your overall tax liability.

If you incurred qualified childcare expenses, claim the Child and Dependent Care Credit using Form 2441, Child and Dependent Care Expenses. On this form, report expenses paid and your care provider’s details. Form 2441 determines the credit amount, which is then reported on your Form 1040.

For the Earned Income Tax Credit, if you have a qualifying child, complete Schedule EIC, Earned Income Credit. This schedule confirms your child meets the EITC qualifying child rules. The calculated EITC amount is then reported on your Form 1040, potentially leading to a refund. Tax software or professional tax preparers can streamline this process, guiding you through entering information and ensuring correct forms are completed.