Navigating the tax implications of foster parenting adds another layer of complexity to the already challenging role of fostering. The financial aspects of fostering are usually not talked about but they can cause a lot of confusion—particularly at tax time.
Questions I found myself asking were: “Can I claim my foster child as a dependent?” “How long does a child need to live with me before I can claim them on my taxes?” “What if I don’t have the child’s Social Security number?”. These are all great questions. Even though they’re a foster child, they are still a child in your home that you are caring for, which by definition is a dependent.
Are you a new foster parent looking for additional insight? Check out my other posts here.
Can you claim foster child on taxes?
According to the IRS, to qualify as a dependent child they must meet these critera:
Support: Get more than half their financial support from you
Relationship: Be your son, daughter, stepchild, eligible foster child, brother, sister, half-sister or -brother, stepbrother, stepsister, adopted child or the child of one of these
Age: Be under age 19 or under 24 if a full-time student, or any age if permanently and totally disabled
Residency: Live with you for more than half the year, with some exceptions
In essence, if your foster child resided in your home for more than 6 months and 1 day, they can qualify as a dependent on taxes. If you’re unsure about your tax situation, I encourage you to reach out to a tax professional. I recommend TurboTax. Their software is easy to use and you can either do it self-guided, or utilize their on-demand tax professionals. Sign up with my link here to get 20% off: TurboTax
Steps to Take When You Don’t Have Their SSN
When filing taxes and claiming a foster child, a common issue is not having their social security number. This isn’t something that we are typically given automatically. But it’s necessary for tax purposes. If you find yourself in this situation, the best place to start is asking your caseworker to provide you with the SSN. In my personal experience, they have always been willing to provide this information to me when asked. In fact, many states require them by law to provide the SSN to the foster caregivers.
If for some reason the caseworker will not provide it to you, I recommend talking with your foster agency. Many times they may have the SSN, or if not they often have working relationships with Children’s Services and can reach out to leadership if needed to obtain the needed information.
If all else fails, you could go to your local SSA Office and explain your situation. Let them know that you need the SSN for tax filing purposes. Be sure to take identifying documents with you such as an ID, utility bills, and verification of the foster placement.
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