Please note: These links and information below are offered as a convenience and are not intended to imply anyone viewing the information will qualify. Due to ever-changing tax laws and credits, we sincerely urge you reach out and contact the the IRS at www.irs.gov or at 1-800-829-1040, or consult with your professional tax preparer.
You’re a new foster parent. You attended the orientation, filled out all of the proper paperwork, went through every inspection process and took all of the appropriate training. You waited longer than expected but finally have a foster child in your home. You’ve found out this new world of fostering is extremely rewarding, and the idea of providing a loving home for a child in need has made your life richer. Your foster child has been in your home for 6 months and tax season is at hand. You have other children and know the steps you need to take to claim them for tax purposes, but what about your foster child? You may be wondering, “Can I claim my foster child on my taxes?” If you meet certain criteria for the 2018 tax year, you can claim your child under the Child Tax Credit – but the Dependent Exemption is gone.
Can I Claim My Foster Child On My Taxes? – Qualifications
In order to answer your question about claiming your foster child on your taxes, there are a few questions you must answer first. Does your child meet the Internal Revenue Services’ (IRS) definition of a foster child? According to the IRS, a foster child is someone who is “placed with you by judgment, court order or an authorized placement agency (state or local government organization).”
Is she under the age of 17 by the end of the tax year? Has she lived with you for at least 6 months of the specified tax year? You reflect on your journey as a family for the last 6 months and remember the first family trip that she went on – Walt Disney World. You beam inside as you recall how bright her smile was as she took a ride on the Tea Cups, bonded with the Disney family, and, more importantly, connected with your own.
She isn’t old enough to work yet, so you don’t have to worry about her filing a joint return. If she were though, filing a joint return would not be an option if you want to claim her for tax purposes. Her board payment is not considered income she has brought in, so she has not provided more than half of her support for the tax year. Those are considered reimbursements by the state and have no effect on eligibility – so that’s good news.
Your answers line up! However, be warned – in previous years, personal and dependent exemptions were allowed, but they’ve been phased out for the 2018 tax year. You cannot file for the $4,050 per child dependent exemption as the Tax Cuts and Jobs Act removed such exemptions from the tax code.
Can I Claim My Foster Child On My Taxes? – What if I’m Disallowed?
Even though she is living with you, your foster child’s biological parents have the option of claiming her as a dependent. If they choose to, there is a possibility that you would be disallowed. In other words, you would not be able to claim her on your taxes.
If you choose to appeal that decision, you could reach out to the IRS using the contact information they provide upon notifying you of this change. Before reaching out, though, it’s important to gather all supporting evidence that shows your foster child has been placed in your home for over 6 months by your local child welfare agency. In addition to showing proof via monthly board payments, you can request paperwork from your local agency verifying you have been the primary caregiver of your foster child.
Can I Claim My Foster Child On My Taxes? – The More You Know
To see the specific changes the Tax Cuts and Jobs Act introduced, visit this Internal Revenue Service page for details. For in-depth information on how to claim your foster child on your taxes, click here for the Internal Revenue Service Publication 501, Exemptions, Standard Deduction and Filing Information.
Please note that this is not legal advice. Talk to your tax advisor, visit the IRS’ website at www.IRS.Gov or call them at 800.829.1040 for specific questions regarding claiming your foster child as a dependent.
Author: Salendria Mabrey, FAFS Communication & Development Associate
Salendria Mabrey is a Communication and Development Associate at Foster and Adoptive Family Services.
I have a child that the court has placed with me. Some friends adopted her and her younger twin sisters but could not handle them. We went to court in January 2015 and the judge placed her with me. The adoptive parents send me 600 a month which doesn’t do much. Now they tell me I can not claim her on my taxes and that I have to report the 600 as an income for me. I am having to pull money out of my income to make ends meet since welcoming her into my home. They make no effort to blend her back with their family.
Hi Mickey,
We’re incredibly sorry to hear of the difficulties you are having. We help foster, adoptive and kinship parents in New Jersey. If you’re an adoptive, foster or kinship parent from New Jersey, please contact us at 800.222.0047 so we can help assist you.
Hi I have my foster child since 8/4/2017. If I had her half her life can I claim her on my taxes? Her birthday is 2/18/17. If the family chooses to carry her can we both claim her?
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction. Therefore, you can claim a child in care on your taxes if the child would have lived in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child. The child’s SSN will be needed to claim a child on your taxes. The child’s SSN can be obtained by requesting from the child’s caseworker. You may also be able to deduct your unreimbursed foster care expenses as a charitable donation. The expenses are deductible if the agency or organization who placed the child with you can receive charitable donations.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Corissa Kazar
Support Services Manager
Once the mom & dad rights have been terminated can I still have the right to carry the kids on my taxes the Judge denied me for their social security information I am a foster mom they been in my house for 1 year & month
I had 2 children placed in my care by a foster agency. They lived with me for just over 6 and 1/2 months. The mother lived on the streets and her whereabouts were unknown. The father was incarcerated. Parental rights were removed from both biological parents in mid Sept. A family member came forward to adopt them. Can I claim the children on my tax return? They were in my care from Jan. 13th till Aug.4th.
The general rule is a child that have been in a resource home for half a year (183 days/ 6 months) can be claimed on a family taxes. The links below can further assist you.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Hello, I am a PA Registered Tax Return Preparer. I do know the general rules of claiming children on tax returns. The foster child is a new one to me as one of my daughters has 2 beautiful little girls in her home this year, 2017. I understand that the girls would have had to be in their home for over half the year to claim as a dependent. They were in another foster home for I believe around 6 months then came to my daughters. We aren’t sure yet if first fosters are claiming them, which I feel they will be. So know for that reason they can not claim them this year. My question is they should put them on their return as dependents I feel, when I state they didn’t live with them long enough that will eliminate all child credits. But is there anything that they can use? They do take them to a daycare now while working, although the local CYS agencies are now paying for some of it…..can they claim what is out of pocket? Or any other expenses that are out of pocket for this year? I have read up on the subject to get familiar with it, and do not see any answers to this.
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction.
However, you can claim a child in care on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child. The child’s SSN will be needed to claim a child on your taxes. The child’s SSN can be obtained by requesting from the child’s caseworker. You may also be able to deduct your unreimbursed foster care expenses as a charitable donation. The expenses are deductible if the agency or organization who placed the child with you can receive charitable donations.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Corissa Kazar
Support Services Manager
Ok if I am totally understanding the rules, the foster children must live with the taxpayer at least 6 months of the year….they meet all other requirements except that one. They came to my daughters in October. Should I put the 2 girls on their return anyways as foster children? And I read about other credits…..they don’t qualify for. I am not understanding the last sentence about un-reimbursed foster care expenses. Or the agency accepting charitable donations. The money they paid out of pocket for their daycare would be considered a charitable donation? To whom? They go to a local YMCA. And they would only be able to use a charitable donation if they can itemize……which I am not sure of for 2017 yet.
To my understanding, if the children were not with the caregiver for the 6 month rule the caregiver would be unable to claim the children whether or not they are on the tax return.
In regards to other expenses, if you receive foster care payments from a child placement agency, the state government, or your local government, the payments are nontaxable income. The reasoning here is that the money is for the support of the foster child, and isn’t going into the parents pocket, the way other income would. You may also be able to deduct your unreimbursed foster care expenses as a charitable donation such as clothes and activities needed for a child etc. that you paid out of pocket but the agency did not reimburse or was not covered by the child’s subsidy from the agency or state. The expenses are deductible if the agency or organization who placed the child with you can receive charitable donations. If the agency can’t accept charitable donations, the unreimbursed expenses may qualify as support provided by you. Support provided by you counts toward your being able to claim the child as a dependent. If you provide at least half of the support for the child and meet the other requirements, you qualify for claiming the child as a dependent. I would recommend you speak with an accountant and your Child Protection Agency regarding details that may assist you further.
Corissa Kazar
Support Services Manager
my foster child ,been in my house hold sine June of 2020 , but someone else claimed her
I have a grandson in my care thru DCFS I have had him since May 7th 2019 mom doesn’t think I should claim him and won’t give me his ssn
In WI it’s 6 months AND A DAY or the majority of the child’s life if they are under 1 year old. The “and a day” is a deal breaker if it doesn’t apply…
I am a foster mother, and it has to be 183 days. We cannot claim them under any other circumstances.
My husband and I took in three children a few years ago. They were not placed by an agency we just took them in because they were living in their car in the middle of winter and I couldn’t allow that to happen right in front of me. We receive no financial assistance from the biological parents nor any state agency. The State of Washington is aware they live here and have come through and made sure the kids are safe and live with us but they still are not in “the system”. They have lived with us for on and off (mostly on) for three years and the only assistance we have gotten for them is the free lunch program through the school because they made them eligible due to their homeless status because our income was too high to be considered…Which is ridiculous. So I believe we can claim the kids as dependents and the biological parents encourage us to claim them… but since they weren’t placed by a state agency we aren’t eligible for Child Tax Credit? Seems unfair when we aren’t asking the state to pay us the foster care support we are entitled to and we are providing 100% support to what were complete strangers who we are not related to and we technically have zero responsibility for. Am I correct? since we took them in out of love instead of having them ripped away from their parents who have fallen on hard times by some government agency we aren’t entitled to credits that others who are getting monthly support from the government for kids they have taken in will get?
It is wonderful that you helped a family in need! However, you are correct that you would not receive financial assistance via tax credit as the children are not in care through Washington’s Child Protection Services. This is because, as per the state, the children are still viewed in the care and custody of the biological parents. Due to this, only the biological parents can claim the children on their taxes as legally they still have rights to the children. The only way you may be able to obtain assistance through a tax credit or other services would be obtaining custody of the children through court. This would be something that you would have to discuss with the biological parents; however if you obtain custody of the children more assistance, financial and otherwise, would be available.
My husband and I are disabled we now have 5 siblings from foster care in which we are about to adopt.my question is will we receive refund from taxes?
The general rule is a child that have been in a resource home for half a year (183 days/ 6 months) can be claimed on a family taxes. The link below can further assist you.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/”
We have enough a child who has been plac3d by a state sponsored agency for more than six months. We do not have a social security number for the child, can we still claim her?
The general rule is a child that have been in a resource home for half a year (183 days/ 6 months) can be claimed on a family taxes. If this is the case, yes they can claim the child; however they would have to obtain the child’s social security from the caseworker.
The link below can further assist you.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/.
So there is the general six month rule, but does that apply in the birth year? My son and daughter-in-law were awarded a three week old infant on July 12, 2016. So the baby was born in late June ( I don’t know the exact date). Baby didn’t live with them for over six months, but did live with them for almost his entire life so far. I don’t know too much about the situation, as they can’t share everything with us, but the birth parents apparently have some drug issues and can’t even have visitations. Does the six month general rule apply here? It doesn’t seem to make sense if it does. I can’t find the exceptions to the general rule…
Thanks in advance,
Earl
Hi Earl,
This is a very specific case. However, we are unaware of any exception to the general six month rule. Please let us know if you find out differently. I’m sorry we couldn’t be of more help.
I think my son found the answer, and I think it’s good news.
In Pub 501, page 12, foster child is listed in number 1 under Tests To Be a Qualifying Child.
Number 3 says the child must have lived with you for more than half the year, with footnote number 2 saying there are exceptions, one of which is for children who were born or died during the year.
On page 14, under Death or birth of a child, it clarifies that the child needs to live with you over half of it’s life during the year.
The baby lived with our son and daughter-in-law from July 12th on, and he was born in late June. So I think they are good to claim him.
Earl
Hi Earl,
Was your son and daughter-in-law successful in claiming their child/ward as a dependent? I was granted guardianship of a 4 month old on July 17th and have a court order appointing my husband and I as her legal guardians. I am having trouble finding information to determine if we are eligible to claim her as a dependent since we will be 15 days short of the 183 days required at the end of the year, but we have had her for the majority of her life and provide all the support for her. Your son’s situation seems similar to mine so I figured I’d reach out. Thanks in advance. I know it’s been a few years since you left your comments.
I had my grandkids thur cps i was a foster parent paid by tge state of Washington.I had them tell the 24 of june 2017 can i claim them in my taxes and what do i need to do so.
Hi Carol,
You can claim a child in placement on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
I had my niece and nephew that was in foster care I had them for 11 months them they got out in a different home would I be able to claim them for my taxex
The general rule is a child that have been in a resource home for half a year (183 days/ 6 months) can be claimed on a family taxes. The link below can further assist you.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/”
Niece’s and nephew lived with me here for four years have custody through CPS father was released from prison a few years ago turn around and claims them this year on taxes they been living with me and my wife the entire to is her able to get away with this what to do
Hi Chaunce,
We recommend speaking with a professional — an accountant or lawyer — regarding this legal issue. The rule for a child in your care through CPS is they have to be in your home for half a year (183 days/6 months) in order to be claimed on your family taxes.
My granddaughter was born on June 7, 2016 and I obtained parental custody of her on Aug 18th, 2016; then permanent custody on Dec 9 2016. I filed my taxes with her on them this year to only have them rejected as someone else claimed her. Does the mother have the right to claim her on her taxes? i have filled out the paperwork to report her for fraud and want to ensure that i can do that. We live in Virginia.
Hi Christi,
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction. We hope this helps.
I am a first time foster parent and would like to know if I have to claim monthly money given by the state as income?
Hi Tina,
If you receive a subsidy or payments to care for a foster child from a state or a child placement agency, the payments are nontaxable income. This money is nontaxable because it is funding specifically for the support of the child. It is not considered income to the parent.
my son was in foster care last year ..6 months and 6 months with me the biological mother for 6 months,,,thats 5 months plus days he was home for visits…who is eligible to claim him? the foster mom has already claimed him without my permission,,is she able to do that lagally?
Hi Amanda,
Resource (foster) parents are able to claim a child in care, if the child has lived in the home for more than half a year — exactly 183 days or more. If the child resided with them for this time, they are able to claim the child on their taxes.
My grandson was born in December of 2016. I am his foster parent and have been since he was released from the hospital. My daughter was not allowed to come home. I can claim her on my taxes will I be able to claim my grandson as well. We live in illinois.
You can claim a child in placement on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
I i have a big question i receive a letter from the irs in dec of 2015 my daughter always do my taxes last year she did them before i could find out more about the letter i dont no what to do could u please help me
I’m sorry Liz, I’m not sure what kind of assistance we could offer in this situation. It’s best to seek out a tax professional if you have serious concerns. Please let me know if there’s anything we can do to help.
If my dependents which are in foster care are my sister kids and her rights has been terminated am I still allowed to claim them.. she has an appeal going on
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction.
However, you can claim a child in care on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child. The child’s SSN will be needed to claim a child on your taxes. The child’s SSN can be obtained by requesting from the child’s caseworker.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Corissa Kazar
Support Services Manager
The 183 days does not apply to infants directly discharged from the hospital, they would need to be in care more than half their life.
Foster Parents need an agency letter stating dates they have been in care, social security numbers which are hard to obtain from caseworkers even though it’s their job, and the return is best paper filed to include the documentation as it can’t be included in e-filing.
Biological parents sometimes try to claim the children if they have access to their social security numbers. Foster Parents who try to efile, find their return rejected because the bios have filed to claim them. This is why it’s usually easier to paper file with the documentation and your return will not get delayed. Or foster parents can file their normal taxes in any fashion and amend them afterwards.
Biological parents who falsely claim the tax exemption for their children who are not currently in their care, it’s been stated the IRS goes after them to pay back the monies plus fines, but nothing is ever said they face prosecution for fraud or anything reaches their DCF case file on the ethics of their behavior on this issue.
your response really helped me. I am having a issue as the father claimed the child and he was in our care for the whole 2016 year and he was actually discharged to us. I have called the state and they stated to just submit our placement paperwork tot he IRS we have.
Our grandson was placed with us in January 2016 by the state, mom came back into our home in May after rehab and the state allowed her to live there but we were still the caregivers. We were getting abut $600.00 a month from the state, daycare was $760.00 a month so we paid the difference and got what he needed out of pocket. Dad lives in NJ and has now claimed him on his taxes and have been told by our daughter that they are the parents we are not and they rights were not terminated. I do have placement paperwork that shows the child was placed with us. So do we have the right to claim the child
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction.
You can claim a child in placement on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
child has lived in our home for the full year of 2016 and we have been the caregivers for the full year. We are in the state of California and father in NJ
If I had a foster kids from Jan 1st to June 25th (177 days). The kid was then placed with another foster family from June 25th to Dec 31st (189 days). So question: am I not able to claim the kids at all? Thank you
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction.
However, you can claim a child in care on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
I am an adopted child, and was wondering how to know or where to find answers in regards of if my adoptive parents are still claiming me under their taxes. I am over 18 years old, but still have a bond with my adopted parents. I do not live with them, but still ask me to send them verification letter for school. I have two older brothers, one of them is in school and the other is not. They never asked my brother to send them a verification letter, but only me. I am not sure why I have to do so and when I ask, my adopted parent doe not give me a straight forward answer. I called the school and asked what are possible reasons for verification letters and if it has anything to deal with financial aid. The answer I got was financial aid has an automatic letter that goes to the loaners and if it wasn’t sent, then that is when I would have to get that letter. But my adopted father has been asking me to send verification letters ever since i started college. Is there a possible reason for this?
Hey Amanda! Before trying to answer your question, it’ll help if we can understand whether or not you were in foster care in New Jersey. Were you in New Jersey foster care, or some other state?
-Frank Alvarez-
Digital Content Creator
It’s highly likely that our little foster daughter will be with us through the end of the year and we will have had her for six months. I can’t seem to get a social security number for her from our dshs office though after several attempts. Is it possible to claim her without a SSN?
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction.
However, you can claim a child in care on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child. The child’s SSN will be needed to claim a child on your taxes. The child’s SSN can be obtained by requesting from the child’s caseworker.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Corissa Kazar
Support Services Manager
I have kinship custody of my nephew and have not had him for 6 months. However, his mom said she wanted to sign a form 8332 to Release a claim to exemption for your child so that the noncustodial parent can claim an exemption for the child. Is that legal?
The custodial parent, can use the IRS 8332 form to do the following, release a claim to exemption for their child so that the noncustodial parent can claim an exemption for the child and revoke a previous release of claim to exemption for your child. In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes unless the IRS 8332 form is completed and if the court does not make any orders about the tax deduction. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year usually receives the deduction.
I have attached links to the IRS webpage, FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child. The child’s SSN will be needed to claim a child on your taxes. The child’s SSN can be obtained by requesting from the child’s caseworker. You may also be able to deduct your unreimbursed foster care expenses as a charitable donation. The expenses are deductible if the agency or organization who placed the child with you can receive charitable donations.
https://www.irs.gov/forms-pubs/form-8332-release-revocation-of-release-of-claim-to-exemption-for-child-by-custodial-parent
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Corissa Kazar
Support Services Manager
Thank you so much.
I have a child that I have had just shy of 6 months but I have had her the longest this year…. she was in several temporary foster homes before mine. So technically no one could claim her. Is that true or since I had her longest I will be able to.
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction.
However, you can claim a child in care on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child. The child’s SSN will be needed to claim a child on your taxes. The child’s SSN can be obtained by requesting from the child’s caseworker.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Corissa Kazar
Support Services Manager
Ive had a sibling group in my care since June 8th, 2017. I know that I’ve had them over six months and should be able to claim them. I’m having a hard time getting their ssn’s from the CW. I think she wants the bio mom to benefit from it. The children are still in my care with no end in sight. What are my options?
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction.
However, you can claim a child in care on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child. The child’s SSN will be needed to claim a child on your taxes. The child’s SSN can be obtained by requesting from the child’s caseworker.
If you need to address concerns regarding the caseworker the most appropriate plan of action is to voice your and your families concerns through the state’s Chain of Command. This would be the caseworker, caseworker’s supervisor and so on until your concerns are addressed. I would also recommend having some form of documentation such as email or a notebook to note who you spoke with, what was discussed and the day and time to further document your concerns and your attempts to address your concerns. It is appropriate to write letters of concern and send to all parties involved with the children’s case including the judge as well.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Corissa Kazar
Support Services Manager
I would go to your CW workers supervisor, if that doesn’t work, the go to that persons supervisor or the GAL. Keep working on the chain of command. I would also have your licensing agency to work on this also.
Girlfriend does foster care has child in her care for a year has paper states child lived with and able to claim the child. I have lived with her for almost a year can I claim on my taxes???
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction.
However, you can claim a child in care on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child. The child’s SSN will be needed to claim a child on your taxes. The child’s SSN can be obtained by requesting from the child’s caseworker.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Corissa Kazar
Support Services Manager
We have had thee separate siblings placed in our home this year. Set of two for five months, set of three for three months, and another set of three for four months. I know since none of them have stayed with us more then six months. We can not claim them. However can we still write off the expense? Example: Day Care,
Even though the state of Arizona pays for some of it, We still have to pay out of our pockets that could run into four to five thousand dollars a year.
Being a foster care can be expensive, especially if the placements are short term.
Foster and Adoptive Family Services (FAFS) provides services and assistance to New Jersey licensed resource, kinship and adoptive families therefore we are unfortunately limited on how we can assist since you are not a NJ resident. However, if you receive foster care payments from a child placement agency, the state government, or your local government, the payments are nontaxable income. The reasoning here is that the money is for the support of the foster child, and isn’t going into the parents pocket, the way other income would. You may also be able to deduct your unreimbursed foster care expenses as a charitable donation. The expenses are deductible if the agency or organization who placed the child with you can receive charitable donations. If the agency can’t accept charitable donations, the unreimbursed expenses may qualify as support provided by you. Support provided by you counts toward your being able to claim the child as a dependent. If you provide at least half of the support for the child and meet the other requirements, you qualify for claiming the child as a dependent. I would recommend you speak with an accountant and your Child Protection Agency regarding details that may assist you further.
Corissa Kazar
Support Services Manager
Hi! My wife and I have 2 girls (siblings) in our home since October 2, 2017. They meet the requirements as far as being placed by a court order, etc. They were with us for 3 months this year, yet we are wondering if we can still claim them, or who would be able to claim them as they did not stay with anyone for 6 months this year. Between January (when their mother was incarcerated) and May, they were bounced between various family members and friends. They were placed in foster care in May and were with one family between May and October (it was towards the end of May, so not 6 months). And then with us for the last 3 months of the year. Who is eligible to claim them? Thanks!
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction.
However, you can claim a child in care on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child. The child’s SSN will be needed to claim a child on your taxes. The child’s SSN can be obtained by requesting from the child’s caseworker.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Corissa Kazar
Support Services Manager
Thank you. So basically even though mom was incarcerated they entire year minus a few weeks, she will be the one eligible to claim them?
Sue,
One can claim a child as a dependent on their taxes only if that child was in their care for at least 183 days. For further clarification, please consult a tax expert.
-Frank Alvarez-
Digital Content Creator
Do you have to have copies of SS#’s cards or do you just need the numbers to claim foster children on taxes? It took me forever to get my foster children’s numbers from their caseworker. I’m not sure if she even has copies of their cards.
In order to claim someone as a dependent on your tax return, they must be either a Qualifying Child or Qualifying Relative. There are many factors that come in to play in determining whether the children in your specific situation meet these requirements. In general, the custodial parent claims the child for tax purposes. If the court does not make any orders about the tax deduction, then the custodial parent automatically claims the child as a dependent for tax purposes. The IRS income tax rules say that the parent having custody for the greater portion of the calendar year receives the deduction.
However, you can claim a child in care on your taxes. In order to do this, the IRS requirement is the child would have to live in your home for more than half a year (183 days). I have attached links to the FAFS website and National Foster Parent Association website regarding taxes below that can also assist you with details to any questions that may arise regarding claiming a child. The child’s SSN will be needed to claim a child on your taxes. The child’s SSN can be obtained by requesting from the child’s caseworker. Unfortunately, only CP&P caseworkers will be able to provide the SSN number. We at FAFS do not track this information.
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
http://nfpaonline.org/taxinfo
Corissa Kazar
Support Services Manager
I am a foster parent to my great nephew in process of adoption. The adoption will be finalized in February. He was born July by the mother left the hospital before she signed the birth certificate. Legally he is known as “baby boy doe” and was not giving a ss number. What do I have to do to get some sort of number to claim on my taxes?
Hi Sherri. Thank you for reaching out to Foster and Adoptive Family Services (FAFS). If your great nephew’s biological parents’ rights have been terminated, then the State is considered to be the Guardian and therefore, the child’s caseworker can apply for a SS#. Typically an adoption is not finalized without it; however, I am not sure about the specifics in your particular case. Also, per a publication on the Social Security Administration’s website (https://www.ssa.gov/pubs/EN-05-10023.pdf) “If you want to claim your child for tax purposes while the adoption is still pending, contact the Internal Revenue Service for Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions.” I would also highly recommend that you contact the Internal
Revenue Service, by visiting http://www.irs.gov, calling 1.800.829.1040 or consulting with a tax professional. Thank you again for reaching out and I wish you all the best in this situation.
Warm Regards,
Jessica Hernandez
FAFS Family Advocate
We have 3 foster children that we are adopting at the beginning of 2019. They have been in 2 other foster homes. Parents have signed over their rights. We will have had the kids the longest of the year but short the 6 months by 2 weeks. No one else can claim them on their taxes. Are we able to do so?
Gabe,
Thank you for reaching out with your question. Based on IRS Guidelines, the child has to reside with you for at least 6 months (183 days) to be considered a Qualifying Child. This is further detailed in IRS Pub-501, which can be found using the link below. IRS Pub-501 does note that there are exceptions to this rule, though it does not state what they are. It is recommended to consult with the IRS and/or a tax accountant regarding when an exception may be accepted and if your particular situation would qualify for an exception. Please feel free to reach out if you have any further questions!
https://www.fafsonline.org/foster-adoptive-kinship-parents-federal-income-tax-information/
Lenore Bonilla
Family Advocate
We have a newborn baby placed in our home from the hospital by CPS. She will be 4 months old by Dec 28. Are we able to claim her on our taxes? I know she hasn’t been with us for 6 months but she is a newborn and placed in our care directly from the hospital to our home by the state.
Based on the IRS Qualifying Child Rules, our interpretation is that this child does not meet the guidelines to be able to be claimed on your 2018 taxes. It is best to consult with a tax professional for case specific questions. Thank you!
https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/qualifying-child-rules
Sincerely,
Lenore Bonilla
Support Services Manager
Hey Mike! We’ve got an update for you:
Generally, a child must be residing with you for at least half of the year (183 days/6 months). Given that the child was born during the year, you may be able to claim the child on your taxes based on Publication 501 from the IRS. Please note the rule on page 12. If you have specific questions, please consult with a tax professional.
https://www.irs.gov/pub/irs-pdf/p501.pdf
“Death or birth of child. A child who was born or died during the year is treated as having lived with you more than half the year if your home was the child’s home more than half the time he or she was alive during the year. The same is true if the child lived with you more than half the year except for any required hospital stay following birth.”
Lenore Bonilla
Support Services Manager
What if you have a child placed in November and still have him. He hasn’t been alive for 6m and 1 day, but have had him in our home for his whole life. Are we able to claim him? I can’t find anything on the IRS website regarding infants.
Generally, a child must be residing with you for at least half of the year (183 days/6 months). Given that the child was born during the year, you may be able to claim the child on your taxes based on Publication 501 from the IRS. Please note the rule on page 12. If you have specific questions, please consult with a tax professional.
https://www.irs.gov/pub/irs-pdf/p501.pdf
“Death or birth of child. A child who was born or died during the year is treated as having lived with you more than half the year if your home was the child’s home more than half the time he or she was alive during the year. The same is true if the child lived with you more than half the year except for any required hospital stay following birth.”
Sincerely,
Lenore Bonilla
Support Services Manager
My daughter just received sole custody of my grandson on Aug 4th,2018. Before this, he was in foster care. While in foster care my daughter got him every other weekend as well as breaks during the school year and 2 weeks out of the summer. From Aug until the end of the year is 147 days. Can she count the weekends and the other times she had him at lengths toward the 183 days? Also, the foster parents received allowances for the support of him so therefore my daughter supported him for most of the year not only with her getting custody but she also paid in child support. Who has the right to claim him? Would she have to fill out an 8332 for the foster parents to claim him?
Based on the IRS Qualifying Child Rules, our interpretation is that this child does not meet the guidelines to be able to be claimed on your 2018 taxes. Even though child support was still paid by the mother, that support is not typically given to the child, but redirected back to the state to assist with the costs of the child being in foster care. Based on most court orders, when a child is removed from their parent, they are under the care and supervision of the state. There is not a joint custody agreement, so it does not seem that the visitations would count as days of custody by the mother as the child was still under the care and supervision of the state. It is best to consult with a tax professional for case specific questions. You can also refer to IRS Publication 501 Thank you!
https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/qualifying-child-rules
Sincerely,
Lenore Bonilla
Support Services Manager
We had a child placed in our care by DCP&P for over six months in 2018 (and into 2019) and we are eligible based on current rules to claim him as a dependent on our 2018 tax filing. The problem is that we don’t have his SS number and the case worker will not return our emails or phone calls about it. We’ve contacted her supervisor and they said that they never had the child’s SS number in their files and now that the child has been reunified with the biological mother they don’t have an avenue to get the SS number any longer, other than requesting it from the mother. DCP&P said if the mother does not provide it they can check with their attorneys to see if it could be court ordered. If the SS number is not available by April 15 we’ll request an extension on filing, but I’m wondering what other advice there may be to get the SS number. As resource parents who are eligible to claim him, this has been very frustrating. Thank you.
Hi Brian,
Thank you for reaching out to embrella, formerly known as Foster and Adoptive Family Services, regarding your question. While you are correct in stating that resource parents are eligible to claim a child on their taxes if he/she has been in their care for 6 months or more, it is not surprising to hear that there was no social security number on file. I have worked with various families experiencing this unfortunate situation. Being that the child has now returned home, it makes the situation even more difficult. At this point, if the Local Office stated that they will check with their attorneys, I would wait to hear back from them. There is also a possibility that the child’s biological parent may have already claimed the child on her taxes. If this is the case, the IRS will only go with the first person who files the claim. I hope that this information has been helpful and I wish you all the best. Should you have any additional questions or concerns, please do not hesitate to reach out to us again.
Warm Regards,
Jessica Hernandez
Family Advocate
We filed our taxes today with a CPA and she said the foster care deduction was gone there was only the adoption deduction.
Did the place for her to file it move. Where is it located in the filing process? Several other foster families said their CPA’s had a hard time finding it but ultimately found where to do the deduction. We are missing out on a lot of money because of this issue. Please help.
Robyn,
Thank you for reaching out to embrella regarding your question about filing your tax return. In the past, there was a dependent exemption that could be claimed for a child in care. This exemption of $4,050 was taken out in lieu of the Child Tax Credit. These changes can be found on the IRS website: https://www.irs.gov/pub/irs-pdf/p501.pdf and https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
If you feel that your CPA was incorrect, I would suggest reaching out to another professional. Please be aware that each family situation could vary significantly based on their individual circumstances. Other families may have a difference in their return based on various factors. Again, if you feel that your return is incorrect, you should reach out to a tax professional.
We have had our foster child since May 10th. She was born March 15th she may be going home in Dec. We will have had her for 7months. Can we claim her on taxes even if she isn’t still in our care
Hello we were Lic. Kinship Parents to 3 young girls starting Aug.1 2019. Currently 1 child has been returned to the mother, but we still care for the other 2.
This places us out of the 6 month in a calendar year, but we are 7 months of continuous care and expecting to have the 2 girls until the end of June 2020.
That said, we are not eligible we are not for either 2019 or 2020 tax credits are we?
Thanks
What do I do if the bio parent claims their kids as a deduction even though I had their kids in my foster care for 200 days of the year?
My fiancees older teens xame to live with us placed by social services in 2019. I was named guardian as was fiancee( their dad). I have a letter showing their placement and the social service packet we signed as caregivers. His income was only $3300. I made almost $39grand. Can i claim the kids and my fiancee and would they be considered my foster children as they were placed by social services and we were named caregivers? Or would i just file them as “other dependents”? We did not receive foster payments but they did live with us the whole year under social services wards… he now has legal custody but wants me to file as i made more..
I am asking for a friend she had her granddaughter placed in her custody through DHS she is fostered her granddaughter for the whole entire year under DHS DHS did give a check every month to her for the child she is just recently adopted her grandchild is she allowed to claim her on her taxes
I have 3 foster children that came to my home a year and a half ago.. They lived with me the entire year of 2020 throughout the worldwide pandemic and quarantines. They still reside with me. The father has claimed them on his taxes for the 2020 year. My taxes were rejected electronically due to them already being claimed. He also received all the stimulus for them based on his previous tax filing for the 2018 and 2019 tax years. He knew it was my intention to file and claim them as I have the right to do so… I sent in my tax return via the USPS now and supporting documentation that the children have been in my care all of the tax year 2020. What else can I do? It’s my understanding that the IRS is still working on 2019 taxes. To say the least, I’m frustrated about the situation.
My Aunt passed away and my cousin lives with his father…my cousin came to my house and we went to court because bad things were going on in the home. Child protective services placed him in my home giving me sole custody until his father completed the necessary drug and alcohol counseling and parenting classes. The father never did anything and my cousin stayed in my care for 4 years until he turned 18. Would he be considered a foster child since he was placed with me by child protective services through a court order? I never received any child support for him and when I claimed him on my taxes I wasn’t sure if he was a foster child so I only got the dependent deduction instead of EIC credit. From what I’m reading if he falls into the definition of a foster child I could amend my taxes….PLEASE HELP!!!!