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Fed taxes for Foster care payments?

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dallas702

Senior Member
What is the name of your state? Doesn't matter

Any of you familiar with current IRS regs on stipends for Fostercare parents?
 


abezon

Senior Member
Not taxable to the foster parent, but they are considered support provided by another person. If the child lives with you over half the year, you can claim the child as a dependent qualifying child. If the child lived with you less than half the year, you may be able to claim the child as a qualifying relative IF you provided over half the child's total support for the year.
 

abezon

Senior Member
If they move from home to home, chances are no one gets to claim them unless the kids stayed for over half the year. Then the kid would be a qualifying child instead of a qualifying relative & support would be irrelevant.
 

LdiJ

Senior Member
dallas702 said:
Thanks. So, when they move from home to home that really confuses things.

Dang, more research. ;)
Yep, it sure does, including having multiple foster parents feeling like they have the potential right to claim the child.

If another foster parent (or the child's actual parents or another relative) had the child for more than six months of 2005, then it wouldn't be wise to attempt to claim the child.
 

dallas702

Senior Member
Yeah, it's going to come down to "days" to see who gets what. The implications also get more complex when you throw in the tax credits, too.
 

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