We are fostering a child. We got her on June 29. Can we claim her on our taxes and if so, does it make a difference on our return amount?
A Qualifying Child can give you a Credit up to $2,000.
A Qualifying Relative can give you a Credit up to $500.
Relationship — the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or step-sibling, or a descendant of one of these.
Residence — has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.
Age — must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.
Support — did not provide more than one-half of his/her own support for the year.
You can claim a child, relative, friend, fiancé (etc.) as a dependent on your 2019 taxes as long as they meet all of the following requirements :
- You provided more than half of their financial support. More info
- They made less than $4,200 in gross income during 2019 unless they are a qualifying child.
- They live with you or they are related to you. (Your relative must live at your residence all year or be on the list of “relatives who do not live with you” in Publication 501.)
- They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
- They aren't (or won't be) claimed as a dependent by someone else.
- They aren’t filing a joint return with their spouse.
- You are not being claimed as a dependent on someone else's return.
You can claim Foster children as a dependents as long as they are placed in your care by a placement agency, court order, or any government agency.
Five tests must be met for a child to be your qualifying child. The five tests are:
In your case as long as you were ordered by a government agency to care for the child(ren) you have passed the Relationship test,
The Age requirements are as follows
Under age 19 at the end of the year and younger than you (or your spouse, if filing jointly),
A student under age 24 at the end of the year and younger than you (or your spouse, if filing jointly), or
Permanently and totally disabled at any time during the year, regardless of age.
The Residency requirement is also met because the child was under your care and financial support for more than half of the year. 6/29 - 12/31/19 is 185 days.
To meet the Support test the child cannot provide more than half of her support for the period in question.
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