To meet this test, the child must have lived with the taxpayer for more than half the year. The taxpayer's home is any location where they regularly live; it does not need to be a traditional home. For example, a child who lived with the taxpayer for more than half the year in one or more homeless shelters meets the residency test.
Exceptions to the Residency Test
The child is considered to have lived with the taxpayer during periods of time when either the child or the taxpayer is temporarily absent due to illness, education, business, vacation or military service.
A child who was born (or died) during the year is treated as having lived with the taxpayer all year, if the child lived in the taxpayer's home for the entire time he or she was alive.
Do not confuse this test with the citizenship or resident test.