Tax season is upon us and you, as a foster or adoptive parent, may be unsure as to how to describe the changes in your family on your tax forms. Kinship House has compiled several resources to try and ease you through the process. Use these as you deem necessary but always consult a tax professional when you’re unsure as to how to proceed.
Foster parents cannot deduct the financial support they receive from outside agencies while caring for foster children. There is, however, the possibility of claiming children who reside with you for more than half the tax year as dependents. Find out more at the links below.
- IRS Guide to Determining Qualifying Children
- IRS Guide Exemptions, Standard Deduction, and Filing Information (2012)
- New York State Citizens’ Coalition for Children’s Guide to Federal Claims of Foster Children
Adoptive parents are often eligible for the Adoption Tax Credit during the year that their adoption has been completed. Find out more information about this credit and about claiming adopted children as dependents in the links below.