Anthony Brown

Dear Anthony: I’m a “known donor” but not a legal parent to my child. Does the fact that I’m not a legal parent affect the availability of tax breaks if I’m providing financial support?

If you have surrendered your parental rights, or if they have been terminated, you are not entitled to claim the child under 26 U.S.C. Section 152 as a dependent.  One requirement for a parent to claim their child as a dependent is that they have resided with the child for at least one half of the taxable year in question.  This may rule out the claim from the beginning if you do not live with your child  However, while the strict language of the statute mandates that the dependent be a “child” of the taxpayer, if you have surrendered your parental rights, you no longer have the necessary legal relationship to make the dependent claim.

If you have not surrendered your parental rights, and you meet the joint residency requirements, the child would be considered the qualifying child of the parent with whom the child has lived for the longest during the qualifying year or, if you live with the other parent, the parent who has the higher adjusted gross income.  You may, however, be entitled to take a state deduction for contributions made to certain college savings plans, such as a 529 plan.