What Proof Does the IRS Require When Claiming a Child as a Dependent?

Claiming a child as a dependent on your tax return can provide significant financial benefits to both you and your child. However, it is essential to ensure that you have all the necessary documentation ready. The Internal Revenue Service (IRS) requires certain evidence to substantiate your claim. This article will guide you through the necessary steps and evidence required to claim a child as a dependent.

Key Requirements for Claiming a Child as a Dependent

When you want to claim a child as a dependent, the IRS requires specific proof. These include:

1. Social Security Number

Evidence that the child has a Social Security number (SSN) is crucial. This number is vital because it identifies the child as an individual in the IRS system. Without a valid SSN, the IRS may scrutinize your claim more closely.

If the child has a job and earns over $12,000 annually, they must file their own tax return. If this is the case, make sure they do not claim themselves as a dependent on their tax return.

2. Proof of Relationship and Residency

To prove your relationship to the child, you can use various documents such as birth certificates, school records, and medical records. Additionally, any legal documentation, such as a guardianship order or a lease agreement where the child is listed, will suffice.

It is crucial to be selective and only claim the child if you have the legal right to do so according to IRS guidelines. Always check the official IRS website for the most up-to-date rules.

IRS Publications to Guide You

The IRS provides extensive guidance through its detailed publications. These publications cover various topics, offering valuable insights into tax filing requirements. Here are three key publications that can help you determine if you can claim a child as a dependent:

1. Publication 17: Tax Guide for Individuals

Published by the IRS, Publication 17 is often referred to as the "Holy Grail" for tax questions. It provides comprehensive information on filing tax returns. Although the 2019 version has not been finalized, the 2018 version is still a valuable resource for navigating tax laws. Start with Publication 17 if you have any doubts or questions.

2. Publication 501: Dependents, Standard Deduction, and Filing Information

This publication provides critical information on who can or cannot be claimed as a dependent. It covers the eligibility criteria and the standard deduction. Use this publication to ensure you are meeting all the necessary requirements for claiming a child as a dependent.

3. Publication 929: Child and Dependent Care Expenses

While Publication 929 focuses more on the tax rules for children and dependents who need to file their own tax returns, it can still provide useful information. It offers insights into the specific rules and requirements for claiming dependents, particularly those who work and earn income.

Conclusion

Claiming a child as a dependent can lead to significant tax benefits, but it is essential to follow the proper procedures and gather all the necessary evidence. The IRS requires proof of the child's SSN and relationship to you, as well as evidence of their residency. Additionally, consulting the IRS's publications can provide you with the guidance you need to navigate the complexities of tax law.

By ensuring you meet all the criteria and have the correct documentation, you can avoid potential issues with the IRS and ensure a smooth tax filing process. Remember to stay updated with the latest IRS guidelines and consult these publications for the most accurate and up-to-date information.