Provide dependent taxpayer IDs on your return
- Children and other dependents provide substantial tax breaks, starting with the exemption of $3,700, and a $1,000 child tax credit for each child under age 17. But you have to provide a Social Security Numbers for your children and other dependents on your return. Otherwise, the IRS will deny the tax breaks.
- Be especially careful if you are divorced. Only one of you can claim your children as dependents. With today’s computers, it’s fairly easy for the IRS to check that spouses aren’t both using their children as a deduction. If you forget to include a Social Security number for a child, or if you and your ex-spouse both claim the same child, the IRS will contact you to straighten things out.
- The $1,000 child tax credit begins to phase out at $110,000 for married couples filing jointly and at $75,000 for heads of households.
- After you have a baby, file for your child’s Social Security card quickly so you have the number ready at tax time. Some hospitals will do this for you. If you don’t have the number you need by the tax filing deadline, the IRS says you should file for an extension rather than sending in a return without a required Social Security number.