My niece was born July 2017 and has been with me since birth. Her parents do not have custody. Can I claim her as a dependent?

[DanielV01 · Accepted solution]

Yes, you probably may.  Please note the following link for the IRS rules on the Residency test to determine a qualifying child.  If the child truly is your niece (the daughter of a brother or a sister, and not a cousin), then you have a qualifying relationship.  If the child lived with you the majority of the time after her birth, she is considered to have lived with you more than half of the year.  And if her biological parents do not (or cannot) claim her, then you may have the strongest claim.

Just keep in mind these factors under the following link:  Tiebreaker rules.  If the parents have a legal claim to the child, they get a higher claim right according to the IRS.  Also, if you try to claim your niece at the same time as another person who also has the (legal) right to claim your niece, then the individual with the highest AGI (Adjusted Gross Income) will be awarded the claim by the IRS.  But your circumstances do seem to lean that you are entitled to make the claim.

[SweetieJean]

Be sure to indicate that she lived with you all year (which is okay for newborns).