How do I claim deductions for foster children who did not live with me for more than half the year?

As foster parents in NC we have childnen in out of our home all year. Last year we had one child for 3 months and another child for one month. Can my wife and I claim any of hte expenses that we incured with taking care of these children and the miles that were driven to take them to therapy and Dr. appointments. I ahve been told that I can claim these as charitable deductions seeing how we cannot claim the children due to them no being in our home for more than 6 months. If I am able to claim the expenses as a charitable deduction then who do I use as the charitable organization? Should I claim them as a child and then answer the question as to how long they lived with us in the TurboTax program?
    Cancel
    Are you reporting the foster care stipends received from the state as income?  As noted by the IRS, "Foster care providers.   Payments you receive from a state, political subdivision, or a qualified foster care placement agency for providing care to qualified foster individuals in your home generally are not included in your income. However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulty-of-care payments."

    If you don't report the stipends as income, you can't deduct the related expenses.
    • In NC we do not report the stipends unless it meets the criteria like you stated. However, I noticed a part in the IRS that states that Foster parents may be able to deduct as a charitable contribution some of hte costs of being a foster parent seeing how htey are volunteers and therefore the expense for your volunteer service is deductible as a charitable contribution as long as you are not making a profit and an orginzation has designated the individual that you take into care. I am wondering who I list as the charitable organization? Department of Social Services, Foster Parent?
    Cancel
    Contribute an answer

    People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

    1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
    2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
    3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
    4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
    5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.
    Cancel