The IRS recently clarified the tax laws relating to qualifying dependents. This clarification means that if you live with and support your significant other's child, you can claim that child as your dependent. The child does not have to be a blood relative or related by marriage to be claimed as a dependent. This change is retroactive to all tax years beginning after December 31, 2004, which means you can amend your tax returns from those years to receive this benefit.

If you are eligible to claim an unrelated child as a dependent, you can also claim any eligible day care expenses for the Child and Dependent Care Credit.

This change provides many taxpayers who are responsible for a child with an added tax benefit when filing their tax return.  You should also remember that you may be able to amend a previous year's return and receive a refund if you were living in a household with a non-related child that you supported during 2005 or 2006.

Produced for Jackson Hewitt Tax Service Inc.

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