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.
Nonprofit charitable organizations are curious institutions in American law, defined more by what they arenât than what they are, because of the way the Internal Revenue Code has evolved. If you think about it, a nonprofit institution is: not for profit, exempt from taxes, and not a private foundation. So what does this mean, and how does it work? Terminology of 501(c)(3) Organizations. Nonprofit (or not-for-profit). This term doesnât mean that an organization canât take in more money than it spendsâwhat we usually think of as âprofit.â If that were the requirement, most, if not all, nonprofits would soon fail.