Can i claim my foster children

[JaimeG · Accepted solution]

Yes, 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:

1. Relationship
2. Age
3. Residency
4. Support
5. Joint return

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.

To meet the Support test the child cannot provide more than half of her support for the period in question.

The IRS Rules for Personal Exemptions and Dependents are very detailed. To view the rules and tests for dependency please click on the following link:

IRS Personal Exemptions and Dependents

Here you will be able to view in detail every specific aspect which may apply to you’re the status of your Personal exemptions and Dependents.

[behappy1212]

Someone else claimed my foster child I had in my house for 14 months.  How do I get this corrected?

[Bsrbsb]

Someone else claimed my foster kids for last year. I claimed them for half a year. I received a letter from the IRS. But I meet all the rules for qualifying. Am I alright?

[xmasbaby0]

Explain more.  You cannot claim a child for "half a year."  They are either your dependent for the entire tax year, or they are not your dependent.  How long did they live with you?

[Gigi253]

If the foster child was in your home for 6 months + 1 day you can claim the child.

If the child was born in the current tax year, then it would be 1/2 their life +1 day.

[Stinkerbellkity]

You don't get it corrected.  If you meet all the qualifications to claim the child, as listed in the answer below, you file a return claiming the child.  If the other person already e-filed claiming the child, you will have to file on paper and by mail.  The IRS will review both returns and make a decision as to who gets to claim the child.  The person who did not qualify WILL HAVE TO PAY BACK ANY REFUND RECEIVED for the dependent.  They'll contact you by mail but it will take up to a year, possibly longer. 

[Stinkerbellkity]

You cannot claim any dependent for half a year; you can only claim dependents for a full year.  If you meet all the qualifications for a full-year dependent, you'll be fine.  If not, the IRS will correct your return and send you a bill for any refund due back to them.

[ReginaM]

@Stinkerbellkity is correct.  You can not claim a dependent for 1/2 the year, only for a full year.   If however there is a dispute on who is eligible to claim the child, you need to prove you’re entitled to claim the dependent.

What To Do When Someone Fraudulently Claims Your Dependent

• Form 886-H-DEP provides a list of supporting documentation to assist in resolving your case.
• You will need copies of birth certificates, proof of identity and documents that show your dependent lived with you at the same address for more than half of the calendar year.   
• Records such as school, medical, daycare, or social service records on official letterhead from a school, medical provider, social service agency, or place of worship that shows names, common address and dates will be needed.
• If you receive a CP75A Notice, it means the IRS is investigating the information you’ve provided and need additional documentation to verify the dependent exemption(s) and filing status you claimed on your tax return.

[jonyetter33]

For the support does the monthly subsidy/reimbursement provided by the state count as  the child providing support?

[KarenM90]

No.  Payments received by a state agency are counted as the child's total support but are not counted as support provided by the foster parent or the child.  

Two other important things to note:

(1) Payments received from state or local governments are generally not included in the taxpayer's income.

(2) An exemption may be claimed for a foster child only if the child is a qualifying child or a qualifying relative.  (See the link below)

Qualifying Child and Qualifying Relative

[Graceland83]

Per Irs.gov

Residency

• The child must have the same main home as you (or your spouse if filing a joint return) in the United States4 for more than half of the tax year

therefore, you can claim a foster child that has lived with you for 6 months +1 day

[LeonardS]

Yes, to claim an exemption for your foster children if  you must be able to answer "yes" to all of the following questions. 

• Are they related to you? The child can be your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, adopted child or an offspring of any of them. 

• Do they meet the age requirement? Your child must be under age 19 or, if a full-time student, under age 24. There is no age limit if your child is permanently and totally disabled. 

• Do they live with you? Your child must live with you for more than half the year, but several exceptions apply. 

• Do you financially support them? Your child may have a job, but that job cannot provide more than half of her support. 

• Are you the only person claiming them? This requirement commonly applies to children of divorced parents.  

This link Rules for Claiming a Dependent on Your Tax Return has information you may find helpful. 

[jbragg]

How does theraputic foster care come in to play?  I have a friend whos son has been in theraputic foster care twice.  The first time the family did not claim him.  He was paced there by the parent through a private charity that helps with mental issues.  The second time he filed his son as he did the last time but this time the theraputic foster parents wanted to claim him and filed him after the parent did.    

[DMarkM1]

The rules are the same for Therapeutic Foster Care. The person/persons who meet the tests as outlined above get(s) to claim the child.  In the case of the foster care claim, whether the child was placed by a court order, placement agency, or government agency is also a factor.  If two people make a claim for the same dependent the IRS will send letters to each asking for documentation to prove their claim.