Can I claim my daughter on my taxes next year ? She returned to my home on 10/13/2020 , My aunt claimed her last year and is receiving the child tax credit now which is gonna affect my taxes next year
Probably not. There are several factors that go into determining who can claim a child and the information you provided does not address all of them. The key point based on the information you did provide is that your child must live with you for more than half of the year. Since your daughter lived with her aunt for more than half of the year you would not meet this qualification. There are some exceptions to this rule for temporary absences. For example if a child is away at college or parents are divorced and the child spends time with both of them. However, if a child is in the custody of another relative, this probably would not be considered a "temporary absence".
The other factors to take into consideration that are not mentioned in your post are:
1. Your daughter's age. If she is over 19 and not a student or over 24 then she cannot be claimed as a dependent.
2. Your daughter's income. If your daughter provided for more than half of her own support she cannot be claimed as a dependent. Please note that this rule does not look at if you provided more than half of her support. It only looks at if your daughter supported herself. It also does not consider how much your daughter made (unless your daughter is over 19 and not a student or over 24).
3. Your daughter's filing status. This one is more applicable with older children. If your daughter is married and files a joint return with her spouse, you cannot claim her as a dependent.
Let me clarify this. My child been living with ME since October of 2020… past 6 months. So she would qualify as MY dependent and the child tax credit for 2021 on the 2022 tax year ?
My bad! I misread that. If your child has lived with you for more than half of the year and she meets the age and support requirements, then yes, you should be able to claim her as a dependent.
In late summer the IRS will update its Child Tax Credit Update Portal to allow you to make changes to your dependent. Since you did not claim your daughter on your 2020 tax return you can use this portal to indicate you will claim her on your 2021 return and may be eligible for the advanced child tax credit payments.
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