Understanding the "Qualifying Child" for Tax Purposes

This is summary of Part 1, Chapter 3 of the IRS Publication 17, specifically addressing the topic of a "qualifying child" for the purposes of claiming a dependent.

Understanding the "Qualifying Child" for Tax Purposes

Filing taxes can be complicated, especially when it comes to claiming dependents. The tax code has specific rules about who can be claimed as a dependent, and one of the primary categories is the "qualifying child." This post will break down the requirements to help you determine if your child meets the criteria. It's important to note that a qualifying child allows you to claim various tax benefits, including the child tax credit, head of household filing status, and the earned income credit.

The Five Key Tests for a Qualifying Child

To be considered a qualifying child, your child must meet all five of the following tests:

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 (such as your grandchild, niece, or nephew).
Age Test: The child must be under age 19 at the end of the tax year and younger than you (or your spouse if filing jointly), or be a student under age 24 at the end of the year and younger than you (or your spouse if filing jointly), or be permanently and totally disabled at any time during the year, regardless of age.
- For example, if your child turned 19 on December 10th, they would not meet the age test unless they were a student or permanently disabled. If your 23 year-old sibling is a student, but you and your spouse are 21, your sibling is not your qualifying child. However, if your spouse is 25 and you file jointly, your 23 year old sibling would be your qualifying child.
Residency Test: The child must have lived with you for more than half of the tax year.
- There are exceptions for temporary absences due to special circumstances, like school, vacation, medical care, or military service. These absences are still counted as time the child lived with you.
- A child born or who died during the year is treated as having lived with you for more than half the year if your home was their main home for more than half the time they were alive.
- If you adopted a child, or had a child lawfully placed with you for legal adoption, that child is considered to have lived with you for more than half the year if your home was the child’s main home for more than half the time since the adoption or placement. This rule applies if you adopted the child in 2024.
- A kidnapped child may still meet the residency test.
- Special Rule for Divorced or Separated Parents: Generally, the child of divorced or separated parents is the qualifying child of the custodial parent. However, this rule is modified if the noncustodial parent meets certain requirements. In this case, the child may be treated as the qualifying child of the noncustodial parent. See details below.
Support Test: The child must not have provided more than half of their own support for the year.
- This test focuses on whether the child's own resources covered more than half of their living expenses.
- If you're unsure if the child provided more than half of their own support, use Worksheet 3-1 in the publication.
- Funds provided by the state are not included in this calculation but are included in the calculation for qualifying relative.
- A car bought and owned by your child is included in the child's support. For example if your child buys a $4500 car, and you provide $4000 of their other support, your child is not your qualifying child since they have provided more than half of their own support.
Joint Return Test: The child cannot file a joint return for the year unless they are only filing to claim a refund of withheld income tax or estimated tax paid.
- For example, if your child and their spouse file a joint return just to get back taxes withheld from part-time jobs, this exception applies. However, if they file a joint return to claim an American opportunity credit, then the exception does not apply and they cannot be your qualifying child.

Special Considerations for Divorced or Separated Parents

The rules for divorced or separated parents (or parents who live apart) are complex. Generally, the custodial parent (the one with whom the child lives for the greater portion of the year) can claim the child as a dependent. However, there are exceptions:

A noncustodial parent may be able to claim the child as a dependent if the custodial parent signs a written declaration (Form 8332 or a similar statement) that they will not claim the child as a dependent. This declaration allows the noncustodial parent to claim the child tax credit, the additional child tax credit and the credit for other dependents.
The noncustodial parent has to attach a copy of the form or statement to their tax return.
If a pre-1985 divorce decree or separation agreement allows the noncustodial parent to claim the child as a dependent, and the decree has not been modified, and the noncustodial parent provides at least $600 for the child’s support during the year, then the noncustodial parent can claim the child as a dependent.
In cases of shared custody, where the child lives with each parent for an equal number of nights, the parent with the higher adjusted gross income (AGI) is considered the custodial parent.
A child who is emancipated under state law is not considered in the custody of either parent.

What Happens When Multiple People Can Claim the Same Child?

If a child meets all the tests to be the qualifying child of more than one person, tiebreaker rules apply:

If one of the persons is the child's parent, the child is treated as the qualifying child of the parent.
If the parents file a joint return, the child is the qualifying child of the parents.
If the parents don’t file a joint return, the child is the qualifying child of the parent with whom the child lived for the longer period of time. If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent with the higher AGI.
If no parent can claim the child, the child is the qualifying child of the person with the highest AGI.
You and the other person may be able to choose who claims the child as a qualifying child.
Important: Only one person can claim the child for certain benefits like the child tax credit, head of household status, the earned income credit, the credit for child and dependent care expenses, and the exclusion for dependent care benefits. You and the other person cannot agree to divide these benefits between you.

To claim the child tax credit or the additional child tax credit, the child must have a Social Security number (SSN) that is valid for employment and issued before the due date of your tax return (including extensions).
If a child was born and died in 2024, and doesn’t have an SSN, include a copy of their birth certificate, death certificate, or hospital records to show they were born alive.
If the child doesn't have an SSN that is valid for employment, you may be able to claim the Credit for Other Dependents (ODC).

Conclusion

Understanding the rules for a qualifying child is essential for accurate tax filing and maximizing potential tax benefits. Make sure you meet all five tests and be aware of the special rules for divorced/separated parents and when multiple people might claim the same child. Always refer to the most recent IRS guidelines and publications for the most up-to-date information.

This blog post is based on the information provided in the IRS Publication 17 and is not intended as tax advice. Consult a tax professional for personalized guidance.

Understanding the "Qualifying Child" for Tax Purposes