Claiming your Kids on Taxes

By: Taylor Miller

It’s one of those things that seems straightforward… until it’s not. So let’s walk through some of the basics you should be aware of.

Let’s start with a few ground rules:

• The child must be a U.S. citizen (or meet certain residency requirements).
• A child can only be claimed on one tax return—so no sharing dependents across households.
• A dependent cannot claim a dependent on their own return. So if your daughter has a baby and files her own taxes, neither of them can be claimed by you.
• You also can’t claim a spouse as a dependent if you’re filing jointly. That one trips people up sometimes!

Child Tax Credit: How It Works

Here’s where it gets a little more detailed. To claim the Child Tax Credit, the IRS looks at a few things. First and foremost is age.

They base age eligibility on December 31st of that tax year. So for your 2024 tax return, they’ll look at your child’s age on December 31st, 2024.

• If your child is under 17, the credit is $2,000.
• If your child is 17 or older, the credit drops to $500.

If your child is 17 or older, a few more conditions come into play. For example, if they’re a full-time student, you can still claim them up to age 24—even if they have a part-time job.

But if they’re not a full-time student, they must:

• Make less than $5,050 for the year (2024 number),
• Not provide more than half of their own financial support.

You must be providing the majority of their support in order to claim them.

What About Other Dependents?

Good question! You can sometimes claim other individuals who live with you if:

• You provide more than half of their support,
• They make less than $5,050 in income (again, 2024 figure).

This could include an aging parent, a sibling, or someone else who meets the criteria. Every family situation is different, so if you’re unsure—ask! These cases can get a little tricky.

Heads Up: Planning for When Your Child Turns 17

Here’s a tax planning tip: When your child turns 17, the tax credit you get for them drops from $2,000 to just $500. That can make a difference when tax time rolls around!

We usually recommend taking a look at your W-4 form and adjusting your withholdings once your child hits age 16, just to avoid any surprises. A little planning now can help you avoid owing later.

Special Case: Kids Going on Missions

This scenario comes up pretty frequently. If your child is heading out on a mission, the IRS looks at who’s providing more than half of their support for the year.

Let’s say your child leaves for their mission in May—you likely can’t claim them, because the IRS sees that mission-related money as a donation to the church, not support for your child. That means you didn’t provide over half of their support for the full year.

But if they leave in August, you probably can still claim them for that year, since you did support them for more than half the year. The same logic applies when they return: if they come back mid-year, you may not qualify to claim them for that year depending on who supported them most.

Bottom Line? Every Family’s Different

There are so many little details and unique situations when it comes to claiming dependents. It’s not always a clear yes or no—and that’s where we come in!

If you’re unsure about your situation or just want a second opinion, don’t hesitate to reach out. We love helping families make sense of this stuff and avoid tax-time surprises.