If you provided support last year for a child in your household who is unrelated to you, you may be able to claim a deduction for that child due to new rules for dependents.
The IRS recently clarified the tax laws relating to qualifying dependents. This clarification means that if you live with and support your significant other’s child, you can claim that child as your dependent. The child does not have to be a blood relative or related by marriage to be claimed as a dependent. This change is retroactive to all tax years beginning after December 31, 2004, which means you can amend your tax returns from those years to receive this benefit.
If you are eligible to claim an unrelated child as a dependent, you can also claim any eligible day care expenses for the Child and Dependent Care Credit.
Produced for Jackson Hewitt Tax Service Inc.
