Claiming Children on Your Tax Return? Here’s What You Need to Know About Proof of Residency
If you’re claiming a child on your tax return this year, you might notice we’re asking for more documentation than ever before — and we get it, it can feel like a lot. Especially when we already know your family, see your kids at school pickup, and recognize that yes, they are your children. Unfortunately, children have long been the top source of tax fraud, which means the IRS keeps tightening the rules — and tax preparers like us are required to follow them closely.
Why We’re Asking for Documentation (Even When We Know You)
As your tax preparer, we’re now held to strict due diligence requirements. If we don’t collect the right proof for every child you’re claiming, we can be fined up to $635 per child — per return. That adds up quickly. So to protect both you and Personal Financial Services, we’re building stronger systems to ensure we’ve got the documentation the IRS requires.
What You’ll Need to Provide
If you’re claiming a child for the first time, (or it’s a new dependent we haven’t claimed before), we’ll need:
The child’s Social Security card
The child’s birth certificate
Proof of residency
Once we have the Social Security card and birth certificate on file, we won’t ask for those again. But proof of residency is required every single year.
What Counts as Proof of Residency?
The IRS wants confirmation that the child lived with you for more than half of the year. Here’s what we can accept as proof of residency:
A rental lease that lists the child’s name
A statement from your landlord or property manager confirming the child lives at your address
A school record that shows the child’s address (Skyward printouts are GREAT!)
Government benefit letters addressed to the child at your home
Medical records or doctor’s office statements
Childcare provider letters
Court orders or placement documentation if applicable
What Doesn’t Count?
Some documents might seem like they should work, but unfortunately, the IRS disagrees — and we have to follow their rules. Here’s what we can’t accept as proof of residency in most cases:
Report cards (they can be mailed to either parent and don’t confirm where the child lives)
Health insurance EOBs (Explanation of Benefits), doctor bills, or similar medical paperwork
Important exception: If you’re married filing jointly and both spouses are the child’s biological parents, we can accept medical paperwork like EOBs or doctor bills as proof of residency. In all other situations — including single parents, stepparents, or unmarried couples — these documents do not count.
Special Situations to Know About
Divorced or separated parents:
By default, the IRS allows the parent the child lives with more than half the year to claim them. However, the other parent can claim the child if the custodial parent signs Form 8332, releasing the exemption. If you’re using that form, you won’t need proof of residency — but we do need the signed 8332 to attach to your return.
Claiming children over 18 who are students:
We’ll need a tuition statement (like Form 1098-T) of other proof of student status.
Claiming a child with a disability:
Please provide a doctor’s statement the first time. In most cases, we can keep that on file going forward.
Head of Household status:
If you’re filing as Head of Household, we need to verify you paid more than half the cost of keeping up your home — especially if you’re also claiming the Earned Income Tax Credit (EITC).
We’re Here to Help
We know this process can feel invasive or repetitive. But our goal is to make your return as accurate — and audit-proof — as possible. If you’re not sure what qualifies as proof, or need help tracking something down, don’t hesitate to reach out!
Watch more about the topic here: