How to Claim a Dependent Child for Tax Purposes

Claiming a dependent child can reduce your tax liability.

Claiming a dependent child for tax purposes is a straightforward procedure. It is a smart tax strategy because it affords you a number of tax benefits not available to taxpayers without children. It increases the number of dependents you can claim and, if you are unmarried, having a child allows you to claim "head of household" filing status. These tax benefits decrease your taxable income, which decreases the amount of tax you owe.

Things You'll Need

• Child's Social Security number
• Receipts for expenses

Instructions

1. Gather all your receipts related to the child's expenses that you paid during the tax year. To claim a child as your dependent, you must be able to prove that you contributed more than 50 percent of the child's support. According to the Internal Revenue Service, support includes food, clothing, housing, money for transportation to school and medical benefits. In addition, the child must not be claimed as a dependent on any other person's tax return.

2. Add the child to the number of dependents you are claiming in the box labeled "Dependents" on your Form 1040, 1040A or 1040EZ tax return. For example, if you are single and have one child, you claim yourself as one dependent and your child as another. In this scenario, you would enter the number "2" in the "Dependents" box.

3. Enter the name of the child and the child's Social Security number. The name must exactly match whatever appears on the child's Social Security card.

4. Check the box marked "head of household," if you are a single parent, in the "Filing Status" section on the form. The choices are single, married filing jointly, married filing separately, qualified widow(er) with dependent child and head of household.

5. Complete the form for child care expenses, if you paid any during the tax year. You must have the provider's Social Security number. Additionally, certain rules regarding dependent children must be followed. The child must be your natural or adopted son or daughter, foster child or stepchild. You can also claim their descendants, your nieces, nephews and grandchildren. The child must be under age 19 and younger than you are; under age 24, younger than you are and a full-time student; or any age and permanently disabled. If the child files a tax return, you cannot claim him as a dependent. You can't claim the child if he is a non-relative and age 17 or older, regardless of your support.

Tips & Warnings

• Review the IRS instructions for dependent tests. A questionnaire is provided that will help you determine whether you can claim a child as a dependent.

References

• IRS: Form 1040 (U.S. Individual Income Tax Return)
• IRS: Form 1040 Instructions