Gifts & Books
Recent blog posts
- Does Every Adoptee Have Issues?
- Mamas Write Anthology
- Teaching Your Child To Meditate
- Talking With Other Adoptive Parents
- We Are Back
- My Niece The Swimmer
- Elephant Bird -- Some Thoughts on Adoption in Dr. Seuss
- Interview With Cooperative For Education
- At Long Last, My Daughter Sleeps In Her Own Bed
- New Years Resolution: Less Talk
- Thank you Lisa! Our group is
1 week 2 days ago
- Congratulations Jessica!
1 week 2 days ago
- I also feel the need to talk
4 weeks 2 days ago
- Thank you, Jessica. I also
10 weeks 3 days ago
- Great post!
10 weeks 5 days ago
- A milestone!
12 weeks 2 days ago
- Thanks for your insightful
14 weeks 5 days ago
16 weeks 5 days ago
- This sounds like a wonderful
21 weeks 2 days ago
- Thanks for sharing this
22 weeks 1 day ago
Can you write off expenses incurred in raising and caring for a foster child in your home? No, not unless you are running a business and you want to claim the income you receive as well. Of course, we all know that the income is actually just a stipend that doesn’t really cover room and board. HOWEVER, federal income tax laws regarding a qualifying dependent were expanded a few years ago to address foster children. Therefore, if the foster child lived in your home for more than half of the year and you provided a dollar more than half of the child’s support, you can claim the foster child as your dependent on your income taxes.
Not only will you receive the exemption for the child, but also the child credit. See page 11 of IRS publication 501, Exemptions, Standard Deduction, and Filing Information, Tests To Be a Qualifying Child. If you are a single foster parent, having a qualifying foster child to claim as a dependent can also qualify you as Head of Household status instead of single, which lowers your tax as well.
Because this is an issue that does not come up frequently with most tax preparers, you may need to tell your preparer or refer the preparer to the publication section cited. You must also provide the child’s social security number, full name, and date of birth. Be sure to let the child’s birth family know that you will be claiming the foster child as your dependent. If the birth family claims the child, thinking that no one else will anyway, the IRS could delay both returns trying to sort it out.
So how do you figure out if you paid more than half the support of the foster child? Look at the fair market value of renting your home furnished by the month. Add up your grocery expenses for a month, utilities, clothing for the child, school expenses, and extra curricular activity expenses. Divide the total of all these expenses by the number of people who live in your home. Does this number exceed the amount that you are paid each month for the foster child by at least one dollar? If it does, then you provided more than half of the support.
Photo Credit: Julia Fuller IRS form 8839 for 2008 tax year
- Ouradopt Related Articles:
- Which Adoption Expenses are Tax Deductible?
- Define Success When Raising an Adopted Teenager
- Why Would Someone Use a Facilitator?
- Can We Take the Adoption Tax Credit for Failed Adoption?
- Homeschool Resources for the ADHD or Behavior Challenged Child
- How to Organize a Baby Room While Waiting to Adopt
- How Abuse Affects Relationships
- How to Clean a Teen's Room
- How to Discipline a Violent Child
- How to Homeschool a Child With Cerebral Palsy
- How to Determine Primary & Secondary Health Insurance Coverage
- Snipe eBay Auctions with Bidnip
Would you like to Go Green and stop contributing to landfills? Would you do it if you could buy green products at wholesale prices cheaper than name brand products? What if you could make enough every month to get your products for free? This business is showing double digit growth during this depressed economy. If you want to make the effort you can earn well-over a $100,000 a year. Pay a yearly membership fee to start $27, sort of like joining Sam’s Club or Cosco for a year. This is not a scam, both fostermommy and Julia Fuller have been members for over a year. Email either of us to ask how you can join.