To start with, I am going to assume that the child is the biological child of both of you and that you live together. In that case, only one person can claim all the tax benefits -- dependent exemption, child tax credit, head of household filing status (sometimes), EIC (sometimes), and dependent care credit or tax-free FSA.
The Statute IRC 501(c)(4) provides for exemption of: Civic leagues or organizations not organized for profit but operated. exclusively for the promotion of social welfare. Local associations of employees, the membership of which is limited to the. employees of a designated person or persons in a particular municipality.
But, if the purpose for the association is to benefit the public some way, and does not include earning a profit, the associationâs members have formed an unincorporated nonprofit association. People form nonprofit unincorporated associations all the time; often without being aware of it. For example, if you and several of your neighbors get together to help raise funds to keep your local library branch open, youâve formed an unincorporated nonprofit association. If an unincorporated associationâs purpose is charitable, educational, and/or scientific in nature, it can qualify as a Section 501(c)(3) organization (also called a public charity).