Deductions & credits

Part One - Adopted/Foster Child Dependent
You may claim a foster child or an adopted child as a dependent on your tax return in the same manner that you would claim a biological child.   You start by adding a dependent in TurboTax, and then indicate that the dependent is "your child" when asked who you are claiming.  Continue and complete the information about the dependent including name, who the child lived with etc.  The next screen will bring you to "Less common situations..."  Here you will indicate if the child was adopted during the tax year, or a foster child in your care.  The final dependent entry screen will allow you to provide the child's social security number.    

Claiming a dependent will allow you to claim the child tax credit, worth up to $2000  (if the child is age 16 or younger) or the other dependent credit, worth $500 (for a child age 17 or older.)    If the child is young enough that you are paying for daycare expenses, you may also claim the dependent and child care credit on your return.  

Rules for Claiming Dependents on Taxes 

Part Two - Disabled Parent Dependent

Claiming an adult dependent can be a bit tougher, as there are a few more rules that apply.  If the person you are supporting does not have income over $5050 for 2024 returns ($4700 for 2023 returns,) not including Social Security benefits they might receive, you can claim an adult you support financially, if you provide for more than half of their total support.   In order to claim an adult dependent, the individual needs to be included on the on the IRS list of "relatives who do not live with you," or be a member of your household.   A parent qualifies as a relative who does not need to live with you.  

Claiming an adult dependent provides the "Other Dependent Credit" on your tax return.  This credit is worth $500 for each qualifying dependent. 

Steps to Claiming an Elderly Parent as a Dependent 

Edited 8/1/2024 4:01P PST