Number: RS22016
Title: Tax Benefits for Families: Changes in the Definition of a Child
Authors: Christine Scott, Domestic Social Policy Division 
Abstract: Beginning with tax year 2005, there is a new definition of a child for tax purposes as a result of changes made by the Working Family Tax Relief Act of 2004 (P.L. 108- 311), and technical changes to this act made by the Gulf Opportunity Zone Act of 2005 (P.L. 109-135). The new definition affected taxpayers claiming certain tax provisions, including five tax benefits widely used by families - the personal exemption for dependents, the dependent care tax credit and exclusion for dependent care assistance programs, the child tax credit, the head of household filing status, and the earned income credit. P.L. 108-311 provided a more uniform definition of a child for these tax provisions. The changes provided specific requirements for an individual to be either a qualifying child or a qualifying relative for the personal exemption for dependents. The tax provisions used by families are linked to new definitions of a qualifying child or qualifying relative. For example, for the child credit, an individual must be a qualifying child under the new definitions and meet, as under the pre-2005 rules, the age limitation (17) and be claimed by the taxpayer as a dependent for the personal exemption.
Pages: 5
Date: March 10, 2006