Prospective adoptive parents in the process of adopting a U.S. citizen or resident need a  taxpayer identification number (TIN) to claim a dependency exemption and (if eligible) a child tax credit for the child being adopted.  If the prospective adoptive parents do not have and/or are unable to obtain the child's Social Security Number (SSN), they should request an Adoption Taxpayer Identification Number (ATIN).   An ATIN is available if the child has been placed by an authorized placement agency in the household of a prospective adoptive parent for legal adoption.    Form W-7A (PDF), Application for Taxpayer Identification Number for Pending U.S. Adoptions, is used by qualifying taxpayers to obtain an ATIN.

• To get Form W-7A, you may also download the form here in Adobe PDF format.
• You may go to any IRS walk-in site.
• You may call 800-829-3676.
• For more information about the ATIN, refer to the Form W-7A (PDF), instructions.

If the child is not a U. S. citizen or resident, use  Form W-7 (PDF), Application for IRS Individual Taxpayer Identification Number, to obtain an ITIN. For more information, refer to  Individual Taxpayer Identification Number.

 

In order to be your dependents, your niece and her child must meet the following tests:

Age is a factor in the qualifying child test, but a qualifying relative can be any age.

As long as the following tests are met, you may claim a dependency exemption for your child:

Only one taxpayer may claim a dependency exemption for a child in a tax year. Generally, the child is the qualifying child of the custodial parent.

However, the child may be treated as the qualifying child or qualifying relative of the noncustodial parent if certain conditions are met:

Refer to Publication 501, Exemptions, Standard Deduction, and Filing Information or Publication 504, Divorced or Separated Individuals, for more information on the special rule for children of divorced or separated parents.

A dependency exemption for a child may only be claimed on one return in a tax year.

 

Since your children lived with you for the greater part of the year, you are considered the custodial parent. Generally, a child is the qualifying child of the custodial parent. Your husband may be able to claim an exemption for a child if you release a claim to exemption for the child by completing Form 8332 (PDF), Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or by signing a substantially similar statement.

• Note that if you release a claim to exemption for a child, you may not claim a Child Tax Credit for that child.

Refer to Publication 501, Exemptions, Standard Deduction, and Filing Information or Publication 504, Divorced or Separated Individuals, for more information on the special rule for children of divorced or separated parents or parents who live apart.

Child support payments are not deductible by the payer.

The payer of child support may be able to claim the child as a dependent.

 

Federal law determines who may claim a dependency exemption.

If your child was born alive during the year, and the dependency tests are met, you may take the full exemption.

If you file your return claiming your daughter as a dependent and do not provide her social security number on the return, the dependency exemption will be disallowed.

You have two options.

You could file your income tax return without claiming your daughter as a dependent.

The other option is to file a Form 4868 (PDF), Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

You cannot claim a dependency exemption for a stillborn child.

If you claim your daughter as a dependent on your income tax return, she cannot claim herself on her income tax return.