Normally, to be a qualifying child for earned income credit and meet the residency test, your child must have lived with you for more than half of the tax year. For earned income credit purposes, even if your child was not alive for more than half of the year, the child is considered to meet the test as if the child lived with you for the entire time he or she was alive during the year.
The earned income credit generally requires that you provide a valid social security number for your qualifying child.
If you meet all the other requirements to claim this credit and your child was born and died in the same year, you will not be required to provide a social security number for that child.
Instead, you may enter "DIED" on line 4 of Form 1040, Schedule EIC (PDF), Earned Income Credit, and attach a copy of the child's birth certificate.
If your child was born alive and died during the same year, and the exemption tests are met, you can take the full exemption.
This is true even if the child lived only for a moment. Whether your child was born alive depends on state or local law.
There must be proof of a live birth shown by an official document such as a birth certificate.
Under these circumstances, if you do not have a social security number for the child, you may attach a copy of the child's birth certificate instead and enter "DIED" in column 2 of line 6c of the Form 1040 (PDF) or Form 1040A (PDF).
You do not have to be entitled to claim the child as a dependent to claim the earned income credit based on the child being your qualifying child. However, the child cannot file a joint return for the year except as a claim for refund. Even if your child does not file a joint return, if your child was married at the end of the year, he or she cannot be qualifying child unless:
• you can claim an exemption for the child, or • The reason you cannot claim an exemption for the child is because you released a claim to a dependency exemption for the child under the special rule for divorced or separated parents or parents who live apart.
No. The noncustodial parent cannot claim the earned income credit on the basis of that child because the child did not live with that parent for more than half of the tax year, and therefore does not meet the residency test.
The custodial parent may be able to claim the earned income credit if all the other requirements are met.