As tax season approaches, expectant parents may wonder if they can claim their unborn child as a dependent on their tax returns. Here is what you need to know:
Understanding Tax Dependents
A dependent is someone who relies on the taxpayer financially, and whom the taxpayer provides with more than half of their support during the year. In addition, a dependent must be a qualifying child or relative according to IRS rules.
Qualifying Child Criteria
For your unborn child to qualify as a dependent for tax purposes, they must meet all five criteria of the “qualifying child” test:
- Relationship: The baby needs to be your biological child, stepchild, adopted child or fostered child.
- Support: The other requirement is that you must provide more than half of his/her expenses over the course of one calendar year.
- Age: The baby needs up be under 19 years old by December 31st or under age 24 if he/she was a full-time student for at least five months out of the year (some age exceptions apply).
- Residency: Your baby has lived with you in your home for at least six months out of the current tax year (exceptions apply here too)
- Joint Return Test – Generally cannot file joint return unless married but there are exceptions.
Note that even if your unborn child doesn’t meet all these criteria yet due to being unborn/undeveloped thus do not have relationship/age restrictions yet – you can still list them on Form W4 which will help ensure proper withholding happens when they are eventually born and able become an official dependant.
Deductions and Credits
If you meet all requirements set forth by IRS regulations and decide to claim an unborn as a dependent during pregnancy many common deductions could now factor into any refunds such as minimum fare wage deduction per pay period etc.. Additionally, because the unborn child counts as a dependent, you may also be eligible for certain tax credits such as:
- Child Tax Credit
- Earned Income Credit
Conclusion
Claiming an unborn child on taxes can have significant tax benefits but it is important to check with your accountant first to ensure compliance and eligibility. With all of this in mind, keep proper records throughout the year and work closely with a professional to maximize deductions while still following IRS regulations.
FAQs
Can I claim my unborn child as a dependent on my taxes?
No, you cannot claim your unborn child as a dependent on your taxes. To qualify as a dependent, the child must be born alive during the tax year and have a social security number or individual taxpayer identification number (ITIN).
Can I get any tax benefits for my pregnancy?
Although you can’t claim an unborn child as a dependent or receive any tax benefits specifically for being pregnant, there may be other deductions and credits that you’re eligible for depending on your situation—for example, medical expenses related to prenatal care.
My baby was born in December of last year – can I still claim them as a dependent?
Yes, if your baby was born alive at any point during the tax year (January 1-December 31), you may still be able to claim them as a dependent if they meet all other qualifying criteria. Be sure to obtain their social security number before filing your taxes so that you can include it when claiming them as a dependent.
