What is the name of your state? TN
We have a heated discussion on another messageboard if foster care payments received by state or agencies are to be counted as "support provided by the foster child", i.e. as the child's "income" for Federal Income Tax Purposes.
Here is my view on this:
I do not see anywhere mentioned in IRS Publication 501 that foster care payments are to be considered as the child's non-taxable INCOME...
All I see is on page 15: Payments you receive for the support from a foster child of a child placement agency are concidered support provided by the agency. Similarly, payments you receive for the support of a foster child from a state or county are concidered support provided by the state or county.
That would make them payments provided by others (state, agency) for the child's support, right?
Now let's look at the "IRS Worksheet for Determining Support". You would enter "0" on line 1-5, unless your foster child has savings or an actual income (from working at McDonald's or similar). After filling out everything else, you are likely to answer "NO" on line 22. If your foster child meets all the other criteria (residency, etc.), IRS says you stop there.
Which means that line 23, where you would enter the support provided by state or other agencies, never comes into play!
Let me know if I see that wrong...
We have a heated discussion on another messageboard if foster care payments received by state or agencies are to be counted as "support provided by the foster child", i.e. as the child's "income" for Federal Income Tax Purposes.
Here is my view on this:
I do not see anywhere mentioned in IRS Publication 501 that foster care payments are to be considered as the child's non-taxable INCOME...
All I see is on page 15: Payments you receive for the support from a foster child of a child placement agency are concidered support provided by the agency. Similarly, payments you receive for the support of a foster child from a state or county are concidered support provided by the state or county.
That would make them payments provided by others (state, agency) for the child's support, right?
Now let's look at the "IRS Worksheet for Determining Support". You would enter "0" on line 1-5, unless your foster child has savings or an actual income (from working at McDonald's or similar). After filling out everything else, you are likely to answer "NO" on line 22. If your foster child meets all the other criteria (residency, etc.), IRS says you stop there.
Which means that line 23, where you would enter the support provided by state or other agencies, never comes into play!
Let me know if I see that wrong...