The question for March 26, 2020 comes from Mark and Pam in Schenectady:

 

We have been foster parents for over a year, can we claim the children in our home as dependents?

Some people say yes and others kept insisting there is no way. It is very confusing.

The Coalition HelpLine answers:

Federal Income Tax Requirements for Foster Parents state that to be considered as a dependent for tax purposes, an individual must be either the taxpayer’s “qualifying child” or “qualifying relative,” as those terms are defined in IRC Section 152. A child must have the required Social Security number that was issued on or before the due date of the tax return (including extensions) and must pass all of the following tests to be your qualifying child for the EITC: A qualifying child must meet four tests: (1) relationship, (2) age, (3) residency, and (4) self-support. Depending on the circumstances, the foster child may meet the four tests.
Please also note the following:

(1) Adopted Child:  An adopted child is always treated as your own child. It also includes a child lawfully placed with you for legal adoption.
(2) Foster Child:  For purposes of the EITC, a child is your eligible foster child if the child is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. (An authorized placement agency includes a state or local government agency or an Indian tribal government. It may also include a tax-exempt organization licensed by a state or an organization authorized by an Indian tribal government.)

Link to more information from the IRS: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/qualifying-child-rules

Do you have a question? Call us on the HelpLine!

Call the Adoptive and Foster Family Coalition of New York’s toll free HelpLine at 888-354-1342: the only FREE statewide 24/7 service of its kind for designed specifically to assist foster parents, kinship carers, adoptive families, related professionals and those wishing to foster or become parents. We have the support you need right now.