Who gets to claim kids on taxes is a question that many parents and guardians often ask themselves. This is a crucial matter as it directly impacts the amount of tax relief and benefits a family can receive. The IRS has specific guidelines and criteria that determine who is eligible to claim a child as a dependent for tax purposes. Understanding these rules can help ensure that families receive the maximum financial benefits available to them.
The IRS defines a dependent as a qualifying child or a qualifying relative. To claim a child on taxes, the child must meet certain requirements. Firstly, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them. Additionally, the child must be under the age of 19 at the end of the calendar year, or under 24 if a full-time student. If the child is permanently and totally disabled, there is no age limit.
Another important factor is the relationship between the child and the taxpayer. The child must either live with the taxpayer for more than half of the year or be a member of the taxpayer’s household for more than half of the year. If the child is a student, they must live with the taxpayer for more than half of the year while attending school.
The IRS also requires that the child not provide more than half of their own support. This means that the child must not earn more than a certain amount of money during the year. For the tax year 2021, the maximum amount a child can earn and still be claimed as a dependent is $4,300.
Furthermore, the child must be a U.S. citizen, U.S. national, or resident alien. If the child is a resident alien, they must have been a resident for the entire tax year. If the child is a U.S. citizen or national, they must be a resident for at least part of the year.
It is important to note that there can be only one taxpayer who can claim a child as a dependent. If both parents are eligible to claim the child, they must agree on who will claim the child. If they cannot agree, the IRS will determine who can claim the child based on a series of factors, including which parent provided more than half of the child’s support and which parent had the child live with them for the longest period during the year.
Understanding who gets to claim kids on taxes is essential for families to maximize their tax benefits. By following the IRS guidelines and ensuring that all requirements are met, parents and guardians can secure the financial relief and benefits that they deserve. It is always recommended to consult with a tax professional or the IRS for specific guidance regarding your individual situation.
