New Baby January 1

[Terry O]

I know I have read this before - - but I want to verify that a child born on 1/1 can be claimed on the prior year's tax return (ie born on 1/1/10 and used on 2009).

Can anyone out there help me find the actual section that shows this?

Thank You!

[taxguy057]

Well Im A New Years' baby myself , but anyhoo, from what I've always known is that if they are born on Dec 31st they can be claimed for the whole year. Never heard or seen when the year turned over (ie... 1st of Jan) that child can be used on prior years' return. Of course I could be wrong, hence need to take an exam next year! lol!

[bstaxes]

I remember reading something like that, but it could have been for a driver's license and the ability to drink at 18 or 21. My memory thinks "you are legally your age the day before your birthday", but my memory is so old the gray matter is more than gray. Sorry can't be more help than that.

[Bart]

I know I have read this before - - but I want to verify that a child born on 1/1 can be claimed on the prior year's tax return (ie born on 1/1/10 and used on 2009).

Can anyone out there help me find the actual section that shows this?

Thank You!

I know that if you turn 65 on Januay 1, you can take the additional standard deduction for being over 65 the year before you actually turn 65.

[mcb39]

A full exemption may be claimed for a child born at any time during the tax year, so long as the child lives momentarily and the birth isrecognized as a "live" birth.

Another example: A child is born on Dec 31, 2009, and dies in January 2010. A full exemption is allowed for the child in both years.

I have never heard of a child being born on 1/1 being able to be claimed on the prior year return. However, I have had children born on Dec 31, who are able to be claimed for the entire year. My two quotes above were taken from the 2010 US Master Tax Guide, Paragraphs 137A and 149

[JohnH]

I know that if you turn 65 on Januay 1, you can take the additional standard deduction for being over 65 the year before you actually turn 65.

This is useful information the parents need to keep on hand. The child will appreciate their foresight when he files his 2075 income tax return. Based on current events, the additional standard deduction by then will probably be $10,000 due to inflation and the average tax rate will be around 70% due to government spending policies at the time he was born.

[Pacun]

To answer the original question, the answer is NO. You cannot claim the child on your 2009 return.

If a child is going to be born on January 1st, I always suggest my client to ask the doctor to induce the mother so that the child is born on the previous year for two reasons:

1.- I can claim a full deduction and credits for the child on the year he was born. (This year is a little different because on January 1, 2010 new benefits start for children born in 2010). I have a friend who couldn't decide what benefit to take. At the end she decided not to push the issue and the issue was born on January 1st, 2010. I she had pushed, she had gotten that exemption benefit.

2.- Some, if not all, school districts use december 31st as the cutting date for school. So if you go with your child who was born 1 second before the year end, you can claim it on your taxes for that whole year AND that child will be on 6th grade while another child who was born 2 seconds later will go to 5th at some point. Just in case Jainen challenges, let me put this disclaimer: provided that the child born the year before doens't have the down syndrome or any other mental incapacity or the child that was born 2 seconds later is average and not super smart. I should add more disclaimers such accidents on the child that was born ealier, etc.

Let's say a child is born 1 second before the year ends and dies 2 seconds later, that child will qualify for full deductions and benefits on the tax return for 2 years.

[TAXBILLY]

>>I know I have read this before - - but I want to verify that a child born on 1/1 can be claimed on the prior year's tax return (ie born on 1/1/10 and used on 2009).

Can anyone out there help me find the actual section that shows this?<<

Child was not living in the prior year and therefore can't be claimed.

taxbilly

[jainen]

>>if you turn 65 on Januay 1, you can take the additional standard deduction for being over 65 the year before you actually turn 65.<<

Not exactly. In my opinion, if you were born on January 1st 2000 then 2000 was your first year and you were one year old at the end of it, that is, December 31st, 2000. We normally say you turned age 1 on your birthday, January 1st, 2001, but technically that was the start of your second year. 2064 will be your 65th year, so at the end of it you will be age 65. The end is a part of the year, so in my opinion you can say you are "65 or older" in 2064.

But that doesn't mean there was an exemption for 1999--in my opinion that was before the first year.

[TAXBILLY]

>>If a child is going to be born on January 1st, I always suggest my client to ask the doctor to induce the mother so that the child is born on the previous year for two reasons:

1.- I can claim a full deduction and credits for the child on the year he was born. (This year is a little different because on January 1, 2010 new benefits start for children born in 2010). I have a friend who couldn't decide what benefit to take. At the end she decided not to push the issue and the issue was born on January 1st, 2010. I she had pushed, she had gotten that exemption benefit.<<

Since we also give medical advice, I always suggest that the father pick up and turn the prospective mother to be upside down and use the reverse Heimlich manuever by midnight, December 31st. :~)

taxbilly