If you are pregnant or planning to have a child, you might be wondering if you can claim your unborn child as a dependent on your taxes. This can help reduce your tax burden and increase your refund. However, there are certain requirements that must be met in order for you to claim this deduction. Here’s what you need to know:
Who Can Claim an Unborn Child?
To claim an unborn child as a dependent on your taxes, you must meet the following criteria:
- You must be expecting a child within the current tax year.
- The baby must be born alive during the tax year.
- The baby must live with you for more than half of the year.
For instance, if you are expecting a baby in November 2023, you can claim the child on your taxes for the year 2023, provided the baby is born alive and lives with you for the remainder of the year.
The Latest Date a Child Can Be Born to Qualify as a Dependent
You might be surprised to learn that the latest date a child can be born in the tax year to qualify as your dependent for tax purposes is December 31. It’s possible to claim your newborn as a dependent as long as it’s documented as a live birth and they were born at any time during the tax year, even if it’s 11:59 p.m. on the last day of the year. However, your baby must be born to qualify. You can’t claim an unborn child on your federal tax return.
The Residency Rule for a Qualifying Child
The first rule for claiming a qualifying child as a dependent is that the child must live with you for more than half the tax year. This might seem to rule out your New Year’s Eve baby, but the Internal Revenue Code (IRC) makes an exception for newborns. The exception also applies when a child dies during the year. Children who are born or die during the tax year are considered to have lived with you at least half the year if your home was their home during their entire lifetime.
The “Tiebreaker” Rules
The IRS provides detailed criteria for who gets to claim a child as a dependent when parents are divorced or separated. They’re called “tiebreaker rules” because they often come into play when both parents want to claim their child. The IRC rule is that only one of you can do so.
Other Tests for Qualifying Child Dependents
Your baby will also qualify as your dependent more or less by default under the remaining IRS rules for qualifying child dependents. A dependent must be your son or daughter, a brother or sister, or a descendant of one of these individuals. The child must be younger than age 19 on the last day of the tax year, or age 24 if a full-time student. The child cannot have provided more than half of their financial support for the year.
The Child Tax Credit for Pregnant Moms Act of 2022
There are efforts in Congress to extend the child tax credit to unborn babies. A group of lawmakers introduced a bill, the Child Tax Credit for Pregnant Moms Act of 2022, that seeks to expand the existing child tax structure. The backers of the bill say it may reduce the number of kids born into poverty.
Medical Deductions Include Care for Miscarriage and Stillbirth
People often disregard looking at medical deductions as they must be at least 10 percent of your adjusted gross income. However, the expenses you have incurred related to pregnancy loss, especially when added to other family medical and dental expenses, can make itemizing these deductions worthwhile.
Conclusion
This article is not intended to serve as a substitute for professional financial advice regarding the filing of taxes, but rather to bring your attention to an issue you may need to investigate when filing your taxes. If you have any questions about whether or not you qualify for an exemption, you should contact a professional with expertise in taxes, like an attorney, or a certified public accountant (CPA).
