Claiming a Child Exemption

Posted on July 01, 2014

Have you claimed a dependency exemption or a child tax credit for your children?

Did those children not live with you during the years in issue?

Then you may have a problem.

In a recent Tax Court case, a couple claimed dependency exemptions and a child tax credit for their four children. Unfortunately, the state had removed the taxpayers’ four children from their home prior to the tax years in issue. Under the law, the taxpayers can claim a qualified child as a dependent if the child lived with the taxpayers for more than one-half of the tax year, the child meets specified age requirements and the child did not provide more one-half of his or her own support for the years in issue.

Because none of the children lived with the taxpayers during the years in issue, the Tax Court ruled in favor of the IRS.

Have you claimed a child that did not live with you as a dependent or claim the related child tax credit? Call us, we can help.