A child who died during the tax year may still be treated as a qualifying child for the Child Tax Credit (CTC) or Additional Child Tax Credit (ACTC) if all IRS dependency requirements were met during the time the child was alive in the tax year.
The rules are applied under Publication 501 and Schedule 8812 instructions.
Eligibility Criteria for a Deceased Child
- Relationship Test: The child must be your son, daughter, stepchild, foster child, or a descendant of any of these (e.g., grandchild). This remains unchanged if the child died during the year.
- Age Test: The child must have been under age 17 at the end of the tax year. If the child turned 17 during the year but died before reaching 18, they may still qualify.
- Residency Test: The child must have lived with you in the United States for more than half the year. If the child died before the end of the year, they must have resided with you for more than half the year prior to death.
- Support Test: You must have provided more than half of the child’s support during the year. If the child died mid-year, support provided up to the date of death is considered.
If all these tests are met, you may still claim the CTC or ACTC for that child. However, if the child died before the end of the tax year, you must ensure that you meet all other requirements, including having a valid Social Security Number (SSN) for both yourself and the child (as required for 2025 and beyond).
Special Considerations
- SSN Requirement: For tax year 2025 and later, both the taxpayer and the qualifying child must have a valid SSN to claim the CTC or ACTC. If the child’s SSN was issued on or before the due date of your return (including extensions), you may still claim the credit. If not, you may still be eligible for a reduced credit amount.
- Documentation: You should retain records such as birth certificates, death certificates, medical records, or school records to substantiate residency and relationship. These documents may be required if audited.
Important IRS Compliance Summary
- Death during the tax year does NOT automatically disqualify the child
- All dependency tests must still be met
- Age test is strictly under-17 rule for CTC
- SSN requirement is absolute
- Credit is claimed via Schedule 8812 with Form 1040
Source:
Schedule 8812
Publicatin 501
Disclaimer: This information is based on IRS guidelines and does not constitute legal or tax advice. Always verify eligibility with current IRS forms and instructions or consult a CPA or tax attorney for personalized guidance.