Community› The Bump Message Boards› Adoption
Adoption
New Discussion

Foster/Adopt and Taxes

LoritaLorita
in Adoption
Does anyone know if you get to claim foster kids on your taxes as dependants?  Also, do you know if the stipend has to be claimed as income?  TIA
Report Reply to Post

Re: Foster/Adopt and Taxes

  • MyColonyNJMyColonyNJ

    You can claim a foster child as your dependent if they were in your care for more than 6 months during the tax year.

    Foster Care payments are non-taxable income (you do not have to pay tax on that money)

    Report Reply
  • Loading the player...
  • Sally JSally J member

    Yes you can claim them.  It's not just about the timing though.  It also depends on on your AGI.  Check the IRS website.  Publication 501 has the information you need.

     Our daugter will have been with us for 5 months, was in a different foster home for 5.5 months and in a different home before that for the other part of the year.  The IRS tie breaker says that if none of the taxpayers are the childs parent, none had her for more than 6 months, and all of them claim her on their taxes, then the one with the highest AGI gets to claim her as a dependant.

    Lilypie Fifth Birthday tickers Lilypie Fourth Birthday tickers DSC_4906edit_wm_web
    Report Reply
  • come*on*babycome*on*baby
    we were told we could NOT claim them. and your stipened is NOT income, it's for the child's needs, so you should not be depending on it for income.
    Report Reply
  • kirstenw05kirstenw05

    We were also told that we could only claim DD once the adoption is final, which isnt until mid 2009, so I guess I will double check with my tax guy.

    We definitely spend more on DD per month than the monthly stipend while she is foster, so it makes sense you should be able to claim them...my niece that we are guardians over collects social security as a survivor of my brother, but we still get to claim her as a dependent on our taxes.

    I guess what I'm saying is that I dont know...

    Report Reply
  • MyColonyNJMyColonyNJ

    From IRS Pub501 - page 9 and 10

    You are allowed one exemption for each person you can claim as a dependent. You can claim an exemption for a dependent even if your dependent files a return.

     

    The term ?dependent? means:

    A qualifying child, or

    A qualifying relative.

     

    Tests To Be a Qualifying Child

    1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. 
    2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student, or (c) any age if permanently and totally disabled. 
    3. The child must have lived with you for more than half of the year 
    4. The child must not have provided more than half of his or her own support for the year.
    Report Reply
  • kirstenw05kirstenw05
    ok so one final question then, how are you supposed to get a social security number for a foster baby?? Since DD is a foster, she is still "owned" by the state, and I dont have power of attorney to get a SSN for her. Dont you need that to claim them on taxes?
    Report Reply
  • MyColonyNJMyColonyNJ

    imagekirstenw05:
    ok so one final question then, how are you supposed to get a social security number for a foster baby?? Since DD is a foster, she is still "owned" by the state, and I dont have power of attorney to get a SSN for her. Dont you need that to claim them on taxes?

    I am not sure how this works, but if the publication says that they qualify, maybe you don't need the ssn.

    I am still new to this, will be on of the questions for sure when I meet with my sw

    Report Reply
  • come*on*babycome*on*baby
    you DO need the SSN. i know the CW of our current children was able to get one for our FD and the card for our FS, who already had a number, just not a card.
    Report Reply
This discussion has been closed.
Choose Another Board
Search Boards
"
"